eSports Mogul’s $3.1 Mn Placement Over-Subscribed; Shares Surged Up 18%

Today on 20th May 2019, media and software business company, eSports Mogul Asia Pacific Limited (ASX: ESH) announced that it has received binding commitments to raise $3.1 million in an oversubscribed placement of 310,000,000 fully paid ordinary shares. The issue was offered to institutional and sophisticated investors at $1 per share. For every two placement shares subscribed for and issued, the subscribed investors will receive one free-attaching option. The option will be exercised at $0.02 per option on or before the date, which is two years from the date of issuance.

The issue price represents a 16% discount to the company’s Volume Weighted Average Price (VWAP) over the last 15 days of shares market price, which came out to be at $0.0116 per share.

eSports Mogul received overwhelming demand from the domestic and international investors along with the existing shareholders. The proceeds from the transaction will be utilised to support the roll-out of the industry first deal with Alliance, to accelerate revenue-generating activities, international expansion programs and innovation of ESH’s market-leading tournament platform

ESH intends to issue 310,000,000 shares under its ASX Listing Rule 7.1 and 7.1A placement capacity with 181,734,572 shares being issued under ASX Listing Rule 7.1 and 128,265,428 shares being issued under ASX Listing Rule 7.1A. All the shares under the placement will rank pari passu with the existing fully paid ordinary shares and will be issued within the company’s existing placement capacity under ASX Listing Rules. The shareholders’ approval is not required for the placement; however, the options are subject to shareholder approval. The settlement of the placement is expected to complete by May 23, 2019. It has been led by the Joint Lead Managers, i.e. Veritas Securities Limited and Oracle Capital Pty Ltd, and they are entitled to a capital raising fee of 6%. Apart from the fee, the Lead Managers will also receive 20 million options with the same terms as the options to be issued under the placement, with the options subject to the shareholders’ approval. The placement is made to investors qualifying under Section 708 of the Corporations Act 2001.

ESH’s Managing Director, Gernot Abl, stated that they are excited with the kind of response they have received from the sophisticated and institutional investors in the placement. This is a strong indication of the kind of trust investors have in the company’s business model, “go-to-market” strategy and the standard of its online esports tournament platform “Mogul”.

On the stock information front, (On 20th May 2019, AEST 01:45 PM), the stock of eSports Mogul was trading at $0.013, up 18.182%, with a market capitalisation of ~$14.11 million. Today, it touched day’s high at $0.014 and day’s low at $0.012, with a daily volume of 12,198,538. Its 52 weeks high and low price stands at $0.036 and $0.011, with an average volume of 2,304,727 (yearly). Its absolute returns for the past one year, six months, and three months are -45%, -56%, and -26.67%, respectively.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report