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FansUnite Entertainment Inc. (CSE: FANS) ("FansUnite" or the "Company"), a technology company providing leading online gaming solutions, is pleased to announce the closing of its previously announced public offering pursuant to which the Company issued 27,547,100 units of the Company (the "Units") at a price of $0.90 per Unit (the "Offering Price") for gross proceeds of $24,792,390 (the "Offering"), including a partial exercise of the over-allotment option, pursuant to an agency agreement between the Company, Stifel Nicolaus Canada Inc. ("Stifel GMP") and Gravitas Securities Inc. ("Gravitas Securities" and together with Stifel GMP, the "Co-Lead Agents") entered into on July 8, 2021.
Each Unit is comprised of one common share of the Company (each, a "Common Share") and one‐half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share (each, a "Warrant Share") at a price of $1.30 per Warrant Share, subject to adjustment in certain circumstances, for a period of 36 months following the closing of the Offering.
"We are pleased to see continued demand from new and existing investors that believe in our vision of becoming a global gaming company," said Scott Burton, CEO of FansUnite. "With this additional growth capital, we are in the best financial position to date as a company. Since going public in May 2020 we have remained committed in growing our three lines of business while expanding our international footprint to showcase our gaming assets to a growing base of customers. As more jurisdictions around the globe focus on legalizing all forms of betting, we are in a favourable position to have a treasury that can accelerate our expansion plans while being a leader in the international regulated gaming market."
The Units were sold on a commercially reasonable efforts basis through the Co-Lead Agents in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario (the "Offering Jurisdictions") and such other jurisdictions outside Canada as agreed to between the Company and the Agents. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, a person in the United States or a "U.S. person" (as such term is defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The Company's (final) short form prospectus for the Offering dated July 8, 2021 (the "Prospectus") was filed with the securities commissions in each of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario and a receipt in respect of the Prospectus was issued on July 9, 2021. The Prospectus incorporates by reference important information about the securities that were offered, and copies of the agency agreement and Prospectus are available on the Company's profile at www.sedar.com or by request to Stifel GMP at syndprospectus@stifel.com or to Gravitas Securities at syndication@gravitassecurities.com.
Please refer to the Prospectus for a summary of the compensation securities paid or issued to the Co-Lead Agents.
The use of proceeds from the Offering is set out in the Prospectus and includes:
- potential future acquisitions;
- developing additional innovative games under the Askott Games brand;
- certifying the Chameleon Software Platform for use in the United Kingdom, as well as expanding the Company's footprint in the United States;
- launching and marketing of a new business-to-consumer brand; and
- entering into new partnerships and increasing brand awareness.
About FansUnite Entertainment Inc.
FansUnite is a global sports and entertainment company, focusing on technology related to regulated and lawful online gaming and other related products. FansUnite has produced a one of a kind complete iGaming platform, with a sports and esports focus geared for the next generation of online bettors and casino players. The platform includes products for pre-match betting, in-play betting, daily fantasy, content and a certified RNG to produce casino style chance games. The platform operates multiple B2C brands and B2B software for the online gambling industry. FansUnite also looks to acquire technology platforms and assets with high growth potential in new or developing markets.
For further information, please contact:
Prit Singh - Investor Relations
ir@fansunite.com
(905) 510-7636
Scott Burton - Chief Executive Officer
scott@fansunite.com
Darius Eghdami - President
darius@fansunite.com
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
FORWARD-LOOKING STATEMENTS: This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as "plans", "expects", "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by the Company, including expectations and assumptions regarding the use of the net proceeds of the Offering, including but not limited to: identifying and completing any acquisitions; developing additional innovative games under the Askott Games brand; certifying the Chameleon Software Platform for use in the United Kingdom, as well as expanding the Company's footprint in the United States and the wider global regulated gaming market; launching and marketing of a new business-to-consumer brand; entering into new partnerships and increasing brand awareness; and becoming a global gaming company; and growing the Company's lines of business. Forward looking statements involve risks, uncertainties and other factors disclosed under the heading "Risk Factors" and elsewhere in the Company's filings with Canadian securities regulators, that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Company believes that the assumptions and factors used in preparing these forward-looking statements are reasonable based upon the information currently available to management as of the date hereof, actual results and developments may differ materially from those contemplated by these statements. Readers are therefore cautioned not to place undue reliance on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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