Engine Media Executive Chairman Tom Rogers and CEO Lou Schwartz among Strategic Investors in Capital Raise
TORONTO, Feb. 22, 2021 /PRNewswire/ — Engine Media Holdings, Inc. (TSXV: GAME; OTCQB: MLLLF) (“Engine Media” or the “Company“) announced today that it has received commitments for its previously disclosed $15 million private placement bringing its total capital raised to approximately $33 million (together with the closings in January 2021). Joining with Engine Media Executive Chairman Tom Rogers, CEO Lou Schwartz and Board Member Hank Ratner as one of the lead investors in the capital raise is Marc Lustig, the founder and former Chairman of Origin House and a highly regarded entrepreneur and investor.
The current non-brokered private placement will be comprised of 2,000,000 units (the “Units”) at a price of US$7.50 per Unit (the “Offering”) for gross proceeds of USD $15 million. Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant (a “Warrant”). Each whole Warrant will entitle the holder to acquire one additional share of the Company at a price of US$15.00 per share for a period of 3 years provided that: (i) if the common shares are listed for trading on NASDAQ, (ii) the Company completes an offering of securities under a short form prospectus for an aggregate amount of at least US$30 million and (iii) the closing price of the common shares on NASDAQ is US$30.00 or greater for a period of 15 consecutive trading days, then the Company may accelerate the expiry date of the Warrants to the 30th day after the date written notice is provided to the holders.
The current US$15 million private placement is expected to be formally completed in the next few days. An update press release will be issued at that time.
Commenting on the successful capital raise Mr. Schwartz said: “We are extremely pleased to have completed this financing, which was oversubscribed and reflected the growing interest and excitement from investors in our esports, gaming, media and data businesses. With this financing soon to be formally completed, we have the financial resources to invest in our business and capitalize on the numerous growth opportunities in front of us.”
Separately, the Company announced that Lawrence Rutkowski who was appointed to the Board of Directors in January 2021 and is member of the Audit Committee will become Chairman of that committee. Steve Zenz who had served as Chairman of the Audit Committee and was a member of the Board of Directors for Frankly Media, Inc. since 2016 – one of three companies that merged to form Engine Media — is resigning from the company’s Board of Directors, effective Friday, February 26, 2021.
“Given the completion of the merger, the significant progress on key integration initiatives, completion of the annual audit and the success of this…
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