FansUnite seeking to raise $2M through private placement; Tekkorp agrees to invest

Sports and entertainment company FansUnite has announced a non-brokered private placement of units of the company at a price of $0.08 per unit for aggregate gross proceeds of $2 million. Investment firm Tekkorp Capital has already agreed to acquire 13.7 million units of the financing. 

Matt Davey, Founder & Chairman of Tekkorp Capital, commented: “We are active investors in the sports and gaming industry and look for great businesses with strong leadership in market segments we like. Scott and his team at FansUnite tick all the boxes for us and we are happy to support them in their journey to grow the company and shareholder value for all investors.”

Scott Burton, CEO of FansUnite, added: “This private placement offers us an opportunity to work with a strategic investor group consisting of top executives who have helped build and grow some of the largest gaming companies globally.”

“They have expressed a strong interest to support our strategy in achieving our profitability and growth targets,” he pointed out. “To date, we have made great strides in maximizing cost efficiencies while executing initiatives to improve our top and bottom line.”

Each unit will consist of one common share in the capital of the company, and one common share purchase warrant of the company. Each warrant will entitle the holder thereof to purchase one common share at a price of $0.12 per warrant share for a period of 36 months after the closing date of the offering. 

It is anticipated that the net proceeds from the offering will be used for general corporate working capital purposes. The company may pay certain finders a fee in connection with the sale of units to purchasers introduced to the company by such finders.

The closing of the offering may occur in one or more tranches, the first of which is expected to close on or about March 9, 2023, and subsequent tranches as may be agreed by the company and the subscribers. Closing of the offering is subject to receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange, and will occur within 45 days from the date hereof.