Enthusiast Gaming Prices Financing, Looks To Raise US$46 Million

Enthusiast Gaming Holdings Inc. (TSX: EGLX) announced today the pricing of its previously announced equity offering made with a syndicate of underwriters led by RBC Capital Markets and Canaccord Genuity. The company is now looking to raise aggregate proceeds of US$46 million.

Under the terms of the offering, the firm pegged the share price at US$5.75 per share, effectively putting 8.0 million shares on the table. Enthusiast Gaming, together with its shareholder Blue Ant Media, has also granted the underwriters an option to purchase an additional 1.2 million shares. Should this over-allotment option be exercised, Blue Ant has the option to provide 50% of the shares for the over-allotment option.

The transaction is expected to close on June 15, 2021.

The company relayed that it intends to use the proceeds from the offering to strengthen its financial position, finance future acquisitions, for working capital, the repayment of indebtedness, and other general corporate purposes. 

Enthusiast Gaming last traded at $7.38 on the TSX.

Information for this briefing was found via Sedar and Enthusiast Gaming. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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