Elys Game Technology closes $3m registered direct offering

Elys Game Technology has confirmed the closure of its registered direct offering via a single institutional investor for the purchase and sale of 3,166,227 shares
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Elys Game Technology has confirmed the closure of its registered direct offering via a single institutional investor for the purchase and sale of 3,166,227 shares.

With a purchase price of $0.9475 per share, the transaction is set to net around $3m for the firm before deducting agent fees and other expenses.

Furthermore, via a concurrent private placement, Elys has agreed to issue to the investor warrants to buy up to another 3,166,227 shares of stock at $0.9475 per shares. This is exercisable up to six months from the date of issuance and contains a term of five tears from the initial exercise date. 

The gaming and sports betting tech firm detailed that the deal is to raise working capital and to go toward ‘other general corporate purposes’. 

This news comes as Elys continues to expand in the US market. Earlier this month it confirmed the launch of its fifth sportsbook in Washington DC via a deal with Pentworth Wagering. Prior to this, it also agreed a deal with Wright Bet to open Ohio sportsbooks set to launch in January 2023, revealed by Ohio lawmakers earlier this month. 

Such expansion comes with significant cost to Elys, with customer acquisition and CRM expansion in the US sports betting market notoriously difficult to navigate. Raising working capital is therefore expected when it seeks to gain market share in the sports betting and gaming market.