Toronto-listed gaming company FansUnite Entertainment has raised additional funding of CAD$2.0m (US$1.5m), through a private non-brokered placement with Tekkorp Capital.
FansUnite placed the units at $0.08 each unit earlier this week with the goal of raising $2.0m in aggregate gross proceeds.
Tekkorp is an investment company that focuses on the global digital gaming market. It agreed to purchase 13,750,000 units of financing. This secured more than half the units in the offering.
Each unit will contain one common share of FansUnite as well as one common purchase warrant. Each warrant allows the holder to buy one common share at $0.12 per share for 36 months following the closing of the offering.
Closing of the offering may be in one or more tranches. The first tranche is expected to close around March 9.
FansUnite stated that net proceeds from the offering would be used to fund general corporate working capital.
Scott Burton, chief executive of FansUnite, stated that the private placement gives him an opportunity to partner with a group of strategic investors made up of top executives who have contributed to building and growing some of the most important gaming companies in the world.
They have shown a strong interest in supporting our strategy to achieve our profitability and growth targets. We have made significant progress in optimizing cost efficiency and executing initiatives that improve our top line.
Matt Davey, Tekkorp’s founder and chairman, said: “We are active shareholders in the gaming and sports industry and seek out great businesses with strong leadership within market segments that we like.”
FansUnite’s Scott and his team tick all the boxes and we are proud to support them in their quest to grow the company as well as shareholder value for all investors.