Vie.gg owner, Esports Entertainment Group, has secured a fresh funding round to the tune of $1 million from four investors.
EEG Adds $1m in Fresh Funds
Esports Entertainment Group (EEG), Inc closed a funding round with private investors adding up to $1 million in fresh investment. The transaction took place on December 6 and was announced on December 11 in an official press released.
The Malta-based esports-focused company secured funding from four different parties, issuing convertible promissory notes to the tune of $550,000 each, along with a 10% original issue discount, the company’s statement read.
Investors will also be able to purchase up to 916,667 of EEG’s common stock valued at $0.001 per individual share. Furthermore, there is a 100% warrant coverage associated with each transaction, and the warrants may be exercised within three years of issuance.
EEG’s notes will accrue a 5% annual interest rate and may be converted back into stock at $0.60 per share.
In March 2018, EEG launched the company’s first esports sportsbook, Vie.gg. The sportsbook is in fact an exchange where fans bet against each other with a small percentage of each wager going to the house regardless of the outcome.
Vie.gg offers multiple markets and competitions, including Counter-Strike: Global Offensive (CS:GO), Dota 2, StarCraft II, Hearthstone and Call of Duty. The platform is intended at individuals who are 18 years of age or older.
Building on Shareholder Value
Speaking on the occasion, EEG CEO Grant Johnson said the transaction was another major milestone for the company. The fresh cash injection will help the company complete ongoing intiatives it has been pursuing for a while now, Johnson specified.
The main objective, Grant said, was to ensure that shareholders derive value from their investment, which was what EEG was focusing presently. Previously, EEG secured several major deals, including an agreement with Harris Blitzer Sports and Entertainment (HBSE).
HBSE is associated with the New Jersey Devils, an NHL franchise, and the Philadelphia 76ers, an NBA 2K League franchise. The company is also present in ePremier League, the digital competition modelled after the English Premier League (EPL) as part of an agreement between the soccer body and Electronic Sports, developer of the FIFA video games. In addition, HSBE is also the sole proprietor of electronic sports (esports) team Dignitas.
Expanding in the iGaming Market
In September, EEG struck another partnership with Mergers and Acquisitions (M&A) firm, Partis Solutions Limited, to help expand its footprint in the iGaming sector. Partis recently helped Betsson acquire one of the largest Brazilian sportsbooks, Suaposta.
EEG will focus on acquiring established B2C iGaming brands to help boost its market share and generate revenue. Johnson commented the partnership by acknowledging the extensive networking opportunities created by Partis.
Meanwhile, HBSE’s brand, the 76ers, signed up a partnership with Caesars Entertainment and Parx Casino in Pennsylvania, looking to bring together various segments and reunite them under the banner of iGaming.
Image credit: Vie.gg