The Digital Gaming Entertainment Group (DGEG) has inked a securities acquisition agreement that will enable the firm to finalize a private placement of unsecured Series D convertible preferred stock with institutional investors.
DGEG anticipates netting $4 million (£3.2 million/€3.6 million) from the deal, after subtracting estimated underwriting charges.
The accord also grants DGEG the chance to raise extra capital, as investors will be able to secure warrants to purchase ordinary stock and supplemental Series D convertible preferred stock.
The transaction is anticipated to conclude in the initial week of May, contingent upon customary closing stipulations.
Previously, DGEG had reached an accord with Alto Opportunity Master Fund in April to exchange its debt for company stock. This transaction was finalized on April 28.
Alex Eagleman, Chief Executive Officer of DGEG, stated: “We are thankful for the additional investment in the firm, which not only bolsters our cash position but also complements the previously announced transaction to convert the company’s $15 million senior convertible notes into unsecured Series C convertible preferred stock.” “As a consequence of these transactions, we anticipate significantly strengthening our financial statement.”
Eagleman added that DGEG is now seeking to expand its reach in its target markets, including electronic sports.
Furthermore, we have slashed over $4 million in yearly operational expenditures and anticipate decreasing over $42 million in debt and other obligations by the year’s end. Consequently, we are now setting the stage for the company to implement our new, intensely focused and capital-efficient business plan, aiming for the expanding e-gaming, esports and e-simulators markets.
Igelman also disclosed EEG’s divestment strategies and plans to broaden its B2C offerings in April.
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