ESE Entertainment To Raise $7.5 Million In Bought Deal
Money continues to slosh around in the small cap markets this week, with ESE Entertainment (TSXV: ESE) being the latest firm to announce a financing. The company last night announced that it will be conducting a bought deal financing, raising gross proceeds of $7.5 million.
Under the terms of the financing, the company will see the sale of 5.4 million units at a price of $1.40 per unit. Each unit contains one common share and one common share purchase warrant. Warrants are valid for a period of 24 months from the date of issuance and contain an exercise price of $1.95 per common share.
An acceleration clause is also present on the warrant, enabling the company to accelerate the expiry in the event that the company trades above $2.925 for a period of ten days on a volume weighted basis. An over-allotment option has also been granted in connection with the financing.
Proceeds from the offering are to be used for business development, working capital, and general corporate purposes.
The financing is currently slated to close by June 15, 2021.
ESE Entertainment last traded at $1.51 on the TSX Venture.
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