secwatch.observer — SEC 8-K summary
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Issuer:     ESPORTS ENTERTAINMENT GROUP, INC. (GMBL)
CIK:        0001451448
Form:       8-K
Filed at:   2023-04-20T23:59:59+00:00
Accession:  0001493152-23-013036
Event type: debt
Sentiment:  neutral
Materiality: 0.70
Item codes: 1.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1451448/000149315223013036/0001493152-23-013036-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1451448/000149315223013036/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-23-013036

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