Toronto-listed gaming group FansUnite Entertainment has raised an additional CAD$2.0m (US$1.5m) in funding from a non-brokered private placement featuring Tekkorp Capital.
FansUnite launched the placement earlier this week at a price of $0.08 per unit, with the aim of raising aggregate gross proceeds of $2.0m.
Tekkorp, an investment business focused on the global digital gaming industry, agreed to acquire 13,750,000 units of the financing, securing more than half of the units available in the offering.
Each unit will consist of one common share in FansUnite and one common share purchase warrant of the group. Each warrant will entitle the holder to purchase one common share at a price of $0.12 each for a period of 36 months after the closing of the offering.
The offering closure may occur in one or more tranches, the first of which is expected on or around March 9.
FansUnite said net proceeds from the offering will be used for general corporate working capital purposes.
“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,” FansUnite chief executive Scott Burton said.
“They have expressed a strong interest to support our strategy in achieving our profitability and growth targets. To date, we have made great strides in maximizing cost efficiencies while executing initiatives to improve our top and bottom line.”
Tekkorp founder and chairman Matt Davey added: “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 in their journey to grow the company and shareholder value for all investors.”