FansUnite Announces Upsize of Private Placement Led by Strategic Investor Tekkorp Capital to $3 Million Due to Strong Investor Demand
Not for distribution to U.S. newswire services or dissemination in the United States
Vancouver, British Columbia–(March 08, 2023) – FansUnite Entertainment Inc. (TSX: FANS) (“FansUnite” or the “Company”) is pleased to announce that it will upsize its previously announced (see press release dated March 6, 2023) non-brokered private placement to up to $3 million (the “Offering”) due to strong investor demand. The Company will issue up to 37,500,000 of units of the Company (the “Units”) at a price of $0.08 per Unit (the “Offering”).
The Offering is led by Tekkorp Capital (“Tekkorp”), an investment firm that advises and invests in innovative public and private companies within the global digital gaming industry, which has agreed to acquire 13,750,000 Units of the Offering.
“We are pleased to receive significant support from the investment community, which led us to upsize our offering due to the strong investor demand,” said Scott Burton, CEO of FansUnite.
Each Unit will consist of one common share in the capital of the Company (each, a “Common Share”) and one Common Share purchase warrant of the Company (each, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share (each a “Warrant 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.
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 of the Offering Document (as defined below).
There is an offering document related to this Offering dated March 6, 2023 (the “Offering Document”) that can be accessed under the Company’s profile at www.sedar.com and at https://fansunite.com/. Prospective investors should read this offering document before making an investment decision. The Company may increase the size of the Offering to the maximum amount permitted by the Listed Issuer Financing Exemption (as defined below) in the context of the market.
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”), the Offering is being made to purchasers resident in all provinces and territories of Canada (except Quebec) and certain foreign jurisdictions pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the “Listed Issuer Financing Exemption”). The securities offered under the Listed Issuer Financing Exemption will not be subject to a hold period pursuant to applicable Canadian securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold in the “United States” or to “U.S. persons” (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
About FansUnite Entertainment Inc.
FansUnite is a global sports and entertainment company, focusing on technology related to regulated and lawful online gaming. FansUnite’s one-of-a-kind iGaming platform Chameleon offers operators a full suite of gaming solutions with a sports and esports focus geared for the next generation of online bettors and casino players. Along with providing B2B technology solutions, FansUnite operates multiple B2C brands, such as Scottish sportsbook McBookie. FansUnite is the parent company of North American-focused AmAff, which operates leading affiliate brands such as Betting Hero and Props.com.
Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “believes,” “belief,” “expects,” “intends,” ”anticipates,” “potential,” “should,” “may,” “will,” “plans,” “continue” or similar expressions to be uncertain and forward-looking. Forward-looking statements may include, without limitation, statements relating to: the Offering, anticipated use of proceeds, closing date of the Offering, payment of finder’s fees, the offering jurisdictions and ability to obtain all necessary regulatory approvals. Forward-looking statements are based on the Company’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of FansUnite to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Additional information regarding the risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in the Company’s Annual Information Form dated June 15, 2021 filed on its issuer profile on SEDAR at www.sedar.com and risks related to global pandemics, including the novel coronavirus (COVID-19) global health pandemic, and the spread of other viruses or pathogens and influence of macroeconomic developments. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The forward-looking statements in this news release are made as of the date of this release. FansUnite disclaims and does not undertake to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.