SharpLink Gaming stock tumbles after filing to offer common stock, warrants

June 12, 2025 02:47 PM PDT | By Investing

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SharpLink Gaming stock tumbles after filing to offer common stock, warrants — Image source: Kalkine Media

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Investing.com -- SharpLink Gaming Ltd. (NASDAQ: SBET) stock plummeted 72% in after-hours trading Thursday after the company filed a prospectus related to a substantial securities offering.

The filing details the potential resale of up to 58,699,760 shares of common stock issued to investors in a private placement offering (PIPE Offering) that closed on May 30, 2025. Additionally, the prospectus covers pre-funded warrants to purchase up to 10,400,553 shares with a nominal exercise price of $0.0001 per share.

The filing also includes strategic advisor warrants to purchase up to 3,455,019 shares at various exercise prices ranging from $6.15 to $7.995 per share, as well as placement agent warrants to purchase up to 2,764,013 shares at an exercise price of $7.688 per share.

SharpLink Gaming will not receive any proceeds from the sale of shares by the selling stockholders. However, the company could receive up to approximately $1,040 in gross proceeds if the pre-funded warrants are exercised in full, $23.8 million if the strategic advisor warrants are fully exercised, and $21.2 million if the placement agent warrants are exercised in full.

The securities were issued pursuant to Securities Purchase Agreements dated May 26, 2025, with the strategic advisor warrants issued under a Strategic Advisor Agreement dated May 30, 2025. The placement agent warrants were issued to A.G.P./Alliance Global Partners (NYSE:GLP) in connection with the PIPE Offering.

According to the filing, the selling stockholders may offer all or part of the securities for resale through public or private transactions at either prevailing market prices or privately negotiated prices. The company’s common stock closed at $37.07 per share on June 11, 2025, according to the prospectus. Shares traded at $9 after-hours on June 12.

This article first appeared in Investing.com

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