FansUnite Entertainment (FANS.C) announced they are upsizing their previously announced unit offering from $10 million to $21.7 million.
The offering is selling purchasers units for $0.90, with each unit consisting of one share of FANS and half of a purchase warrant. Each full warrant will entitle its holder to purchase a share of FANS for $1.30 and will be exercisable for 36 months following the closure of the offering.
FansUnite has also given the Co-Lead Agents an option to increase the size of the offering by up to 15% for a period of 30 days after the closing date. If this were exercised, the total raised by the offering would be just under $25 million.
If this were exercised, the total raised by the offering would be just under $25 million.
FansUnite says they are upsizing due to demand, and it’s not surprising to see why demand would be high for this FANS placement at the moment.
Before they announced the upsizing, FansUnite was trading at $1.23, after the stock was up over 100% in June, a reversal from a slow decline from mid-March to the end of May. Even at $1.23 though, the stock was still far from its all-time high of $2.37, which it hit in February.
FansUnite says they are upsizing due to demand, and it’s not surprising to see why demand would be high for this FANS placement at the moment.
Demand must have come in fast, as they only announced this placement yesterday, along with the filing of their short form prospectus. Back in January, FansUnite’s private placement was also upsized, and in that round of cash raising they brought in over $13 million.
FANS says they plan on using the funds raised to develop their products and increase their brand awareness. These plans include developing games under their Askott Games brand, one of FansUnite’s B2B platforms, which is developing casino-style games with themes that appeal to esports fans and enthusiasts.
FANS says they plan on using the funds raised to develop their products and increase their brand awareness.
They are also aiming to certify their Chameleon Software Platform, their other B2B platform, for use in the UK, and hoping to expand their footprint into the US.
They are also launching and marketing a new business-to-consumer brand and forming new partnerships and increasing brand awareness. Earlier this week, they entered into an agreement with Brazil’s top Counter-Strike player, giving them exclusive gaming partner rights for the upcoming CS:GO Major. Deals like this one allow them to increase their brand penetration in growing areas and markets, such as e-sports and Brazil.
However, because the private placement was below the current share price, shares fell 21 cents and are currently trading at $1.02.
Full disclosure: FansUnite Entertainment is an Equity Guru marketing client.
