🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Esports Group secures $1.42 million note, amends stock terms

Published 03/14/2024, 05:48 AM
© Reuters.
GMBL
-

Esports Entertainment Group (NASDAQ: GMBL) disclosed the issuance of a secured promissory note valued at approximately $1.42 million, alongside amendments to its Series C and D Convertible Preferred Stock. The agreement, dated March 7, 2024, provides the holder with a first priority security interest in all of the company's tangible and intangible personal property.

The note carries an annual interest rate of 10%, to be added quarterly to the principal balance, and is set to mature on March 7, 2026. Should the company default, the interest rate would increase to 12%. This transaction includes standard default terms, such as failure to pay and breach of covenants, and the company has also agreed to indemnify the note holder as described in the agreement.

The financial maneuvering by Esports Entertainment Group is a strategic step as the company navigates its capital structure amidst the dynamic conditions of the esports industry. The move could potentially provide the company with the flexibility to manage its finances and invest in growth opportunities.

Investors and market watchers are observing the implications of this financial arrangement, as it reflects the company's approach to securing additional capital and restructuring its existing obligations. The secured note and the amended terms of the preferred stock represent a critical element in the company's financial planning.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.