Esports Entertainment Group to convert $15.2M note into Series C Preferred, contingent on capital raise

ESPORTS ENTERTAINMENT GROUP, INC.

Agreed to exchange $15,230,024 outstanding Senior Convertible Note for new Series C Convertible Preferred Stock, contingent on closing a capital raise.
Capital raise must allow company to demonstrate compliance with Nasdaq's $2.5M minimum stockholders' equity requirement.
Series C Preferred carries 8.0% annual dividend increasing 0.50% every 135 days; convertible at 105% of post-capital raise closing price.
Prior to agreement, company redeemed $679,976 of the note for cash, reducing principal from $15.91M to $15.23M.
Conversion will extinguish $15.23M debt liability and related derivative liability of $799,954 as of Dec 31, 2022.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

ESPORTS ENTERTAINMENT GROUP, INC. entered into Note to Preferred Stock Exchange Agreement with holder of its Senior Convertible Note valued at conversion of $15,230,024 Senior Convertible Note into new Series C Convertible Preferred Stock (effective 2023-04-19).

Action: entry
Counterparty: holder of its Senior Convertible Note
Value: conversion of $15,230,024 Senior Convertible Note into new Series C Convertible Preferred Stock
Effective: 2023-04-19

Exact text from the filing

On April 20, 2023, the Company announced that it has entered into an agreement, dated April 19, 2023 (the “Note to Preferred Stock Exchange Agreement”), with the holder of its Senior Convertible Note to convert the $15,230,024 in aggregate principal amount of the Senior Convertible Note outstanding into new Series C Convertible Preferred Stock

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ESPORTS ENTERTAINMENT GROUP, INC. filing history →

Source: SEC EDGAR

accession 0001493152-23-013036

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