Esports Entertainment Group closes $30m registered direct offering

Malta-based online gambling company Esports Entertainment Group, Inc. (EEG) announced that it has closed its registered direct offering of common stock, resulting in aggregate gross proceeds of $30m (~£21.64m).

EEG sold 2m shares of its common stock at a price of $15 (£10.81) per share, priced at-the-market under NASDAQ rules.

Esports Entertainment Group
Credit: Esports Entertainment Group

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While EEG has been active in esports since 2008, the last few years have ushered in a significant leap in the company’s influence. Esports Entertainment Group became the first esports betting company to launch an initial public offering in April 2020, and its NASDAQ debut generated approximately $2.75m (~£2.18m) in warrants and common stock as of May 31st.

At the time, the company stated that its investments would assist in providing the ‘resources necessary to execute its business plan’.

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Over the last few years, EEG has entered into several key arrangements ranging from partnering with teams such as Dignitas and the Baltimore Ravens, to acquisitions of Argyll Entertainment and the Esports Gaming League (EGL).

Just this week, EEG submitted its gaming license with the New Jersey Division of Gaming Enforcement (NJDGE). If approved, the licence will allow EEG to operate and service bettors in the Garden State including through its esports-focused sportsbook VIE.gg.

Esports Insider says: EEG has quickly grown into a powerhouse in the esports industry due to its partnerships across multiple organisations and regions. With expansions in New Jersey and Canada potentially coming soon, we anticipate many more announcements in the near future.

ESI Digital Spring | 30-31st March