The offering consisted of a brokered portion and a non-brokered portion, accounting for aggregate gross proceeds of $17.0m and $824,700, respectively.
A total of 14.8m special warrants, including an aggregate of 1.7m special warrants issued as a result of the exercise of the agent’s over-allotment option, were sold at a price of $1.20 each.
Each special warrant entitles the holder to receive one unit of the company, with each unit being comprised of one common share, and half of a common share purchase warrant.
Each warrant will entitle the holder to purchase an additional common share of the company at a price of $1.50 for a period of 36 months from the initial closing date of the offering.
The net proceeds of the offering are expected to be used for working capital and general corporate purposes.
“Luckbox’s strong leadership team paired with the current size and growth potential of esports and sports betting led to the offering being heavily oversubscribed, as investors begin to recognize this attractive sector and opportunity,” Luckbox chairman Drew Green said.
“We are grateful to our investors for their support and this financing puts Luckbox in a strong position to execute on our goals as we strive to further establish the business as a global leader in the esports betting space.”
As consideration for its services in connection with the private placement, Luckbox paid to Gravitas Securities, the lead agent in the deal, cash commission equal to $1.4m, and issued it a further 1.1m non-transferrable agent special warrants.
Each agent special warrant is exercisable for one non-transferrable warrant at no additional cost. Gravitas was also paid a fiscal advisory fee for the provision of its advisory services with respect to the non-brokered private placement. The agency received a fee equal to $65,976 and was issued with a further 54,980 advisor special warrants