Vancouver, British Columbia– December 15, 2020- FansUnite Entertainment Inc. (CSE: FANS) (OTCB: FUNFF) (“FansUnite” or the “Company“), a technology company providing leading online gaming solutions, is pleased to announce that it has entered into an agreement with Gravitas Securities Inc., as sole agent and sole bookrunner (the “Lead Agent“), in connection with a marketed commercially reasonable best efforts private placement offering (the “Offering“) of special warrants of the Company (“Special Warrants“) at a price of $0.625 per Special Warrant, for gross proceeds of up to approximately $5,000,000. The initial closing date is expected to be on or about the week of January 11th, 2021 (the “Closing Date” or “Closing“) and the Offering may be completed in one or more closings at the discretion of the Lead Agent.
Each Special Warrant shall be exercisable, for no additional consideration at the option of the holder, into one unit of the Company (each, a “Unit“), with each Unit being comprised of one common share of the Company (a “Common Share“) and one half (1/2) of one non-transferable Common Share purchase warrant (each whole warrant, a “Warrant“). Each Warrant will entitle the holder thereof to acquire one Common Share (each, a “Warrant Share“) at an exercise price of $0.78 per Warrant Share for a period of 24 months after Closing (the “Expiry Date“).
The Company has granted the Lead Agent, as well as any other investment dealers or exempt market dealers agreeable to the Company that form a syndicate of agents with the Lead Agent (collectively with the Lead Agent, the “Agents“), an option (the “Over-Allotment Option“) to offer for sale up to an additional $750,000 of Special Warrants issued pursuant to the Offering to cover any over-allotments, exercisable in whole or in part, at any time within 30 days following the Closing Date.
The net proceeds raised under the Offering will be used for working capital and general corporate purposes.
As soon as reasonably practicable after the Closing, the Company will prepare and file with each of the securities regulatory authorities in each of the provinces of British Columbia, Alberta, Manitoba and Ontario, (the “Jurisdictions“) and obtain a receipt for, a final short form prospectus (the “Final Prospectus“), qualifying the distribution of the securities issued pursuant to the Offering, in compliance with applicable securities law, within sixty (60) days from the Closing of the Offering.
In the event that the Company has not received a receipt for the Final Prospectus within sixty (60) days following the Closing, each unexercised Special Warrant will thereafter entitle the holder thereof to receive upon the exercise thereof, at no additional consideration, one-and-one-tenth (1.10) Unit (instead of one Unit) (the “Penalty Ratio“), provided that nothing shall require the Company to issue fractional Units or Common Shares and Warrant Shares underlying such Units, and any fractions resulting from the application of the Penalty Ratio shall be rounded down to the nearest whole number.
This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.
About FansUnite Entertainment Inc.
FansUnite is a global sports and entertainment company, focusing on technology related to regulated and lawful online gaming and other related products. FansUnite has produced a one of a kind complete iGaming platform, with a sports and esports focus geared for the next generation of online bettors and casino players. The platform includes products for pre-match betting, in-play betting, daily fantasy, content and a certified RNG to produce casino style chance games. The platform operates multiple B2C brands and B2B software for the online gambling industry. FansUnite also looks to acquire technology platforms and assets with high growth potential in new or developing markets.