Offering conducted in conjunction with planned Fantasy Aces merger
By Devika Patel
Knoxville, Tenn., Sept. 3 – DraftTeam Daily Fantasy Sports Corp. said it raised C$2.04 million in the first tranche of a private placement of subscription receipts. The deal was announced June 12 and priced for about C$5 million with a C$750,000 greenshoe on July 17.
The company is selling about 50 million receipts at C$0.10 apiece. The purchase price is a 16.67% discount to C$0.12, the July 16 closing share price. DraftTeam sold 20,415,000 receipts in the first tranche.
Each receipt will be automatically converted into one unit of a common share and one warrant. The warrants will each be exercisable at C$0.15 for three years. The strike price is a 25% premium to the July 16 closing share price.
The deal will be conducted on a commercially-reasonable best-efforts basis by a syndicate of agents led by Beacon Securities Ltd. and including Industrial Alliance Securities Inc. and Salman Partners Inc.
Settlement is expected July 30.
Proceeds will be used to accelerate the combined company’s business plan. The deal will be conducted in connection and concurrently with the company’s planned merger with Fantasy Aces, LLC.
The fantasy sports gaming company is based in Vancouver, B.C.
| Issuer: | DraftTeam Daily Fantasy Sports Corp.
|
| Issue: | Subscription receipts convertible into units of a common share and one warrant
|
| Amount: | C$5 million (approximate)
|
| Greenshoe: | C$750,000
|
| Receipts: | 50 million (approximate)
|
| Price: | C$0.10
|
| Warrants: | One warrant per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.15
|
| Agent: | Beacon Securities Ltd. (lead), Industrial Alliance Securities Inc. and Salman Partners Inc.
|
| Announcement date: | June 12
|
| Pricing date: | July 17
|
| Settlement date: | Sept. 3 (for C$2,041,500)
|
| Stock symbol: | TSX Venture: DTS
|
| Stock price: | C$0.12 at close July 16
|
| Market capitalization: | C$4.25 million
|
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