Victory Square Technologies Inc (CSE:VST) (OTC:VSQTF) (FRA:6F6) said its portfolio company GameOn Entertainment Technologies Inc has doubled the size of the non-brokered private placement it launched on Monday from C$1.5 million to C$3 million due to strong investor demand.
Each subscription receipt in the placement will still be sold at a price of C$0.35 each. The offering of subscription receipts is bring made ahead of GameOn Entertainment's plans to go public later this quarter. The company said it intends to use the net proceeds to finance acquisitions, organic growth investments and for general working capital purposes.
Founded in 2018, GameOn delivers sports and entertainment content providers access to what it calls "the world’s simplest and most accessible gamification platform." Whether its clients are TV networks, over-the-top platforms, sportsbooks or leagues, GameOn helps its partners turn their content into interactive and social experiences through mobile and TV apps.
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The receipts will be issued according to a subscription receipt (SR) deal to be entered between GameOn and an escrow agent. Each SR will be converted into a unit of GameOn, once certain escrow release conditions are met, the company said, namely approval for the company to list on the Canadian Securities Exchange. If conditions are not met by May 31, proceeds will be returned to subscribers.
Each SR unit will consist of a future GameOn share and one-half of a GameOn share purchase warrant, with each whole warrant entitling the holder to purchase an additional share at a price of C$0.52 for a period of two years. GameOn can shorten that period to 30 days, with notice, if its future closing price on the CSE or equivalent exchange is at or above C$0.78 for ten straight trading days.
Victory Square, a Vancouver-based mobile game ventures company, purchased GameOn through its portfolio company V2 Games Inc in December 2020.
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