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Victory Square Technologies investee GameOn Entertainment Technologies closes C$5.8M oversubscribed financing

Published: 16:06 11 Mar 2021 EST

Victory Square Technologies Inc -
The financing included 16,505,536 subscription receipts at a price of $0.35 per subscription receipt

Victory Square Technologies Inc (CSE:VST) (OTCMKTS:VSQTF) announced Thursday that its portfolio company GameOn Entertainment Technologies Inc closed its previously announced and oversubscribed non-brokered private placement, raising gross proceeds of approximately $5.8 million.

The financing included 16,505,536 subscription receipts at a price of $0.35 per subscription receipt, according to a statement.

Proceeds from the financing were deposited in escrow pursuant to the terms of a subscription receipt agreement dated March 11, 2021, between GameOn and Odyssey Trust Company as subscription receipt agent.

READ: Victory Square subsidiary GameOn Entertainment doubles private placement before planned public listing to C$3M

"We are thrilled to complete this oversubscribed financing, made possible by an overwhelming response and investor demand," GameOn CEO Matt Bailey said in a statement.

"This influx of resources will not only allow us to further enable content providers and their fans with shared, gamified viewing experiences, but also ignites the ability to scale quickly by way of M&A to expand teams and existing products, as well as develop complimentary offerings."

Victory Square Technologies said the funds will be held in escrow pending satisfaction of all of the escrow release conditions pursuant to the terms of the subscription receipt agreement including, but not limited to, the company receiving all applicable regulatory approvals and completing an IPO on the Canadian Securities Exchange as well as receipt of a final prospectus of GameOn.

Upon satisfaction of the escrow conditions, the funds – less a 6% finder’s fee – will be released to the company and each subscription receipt will automatically convert into one unit of GameOn for no additional consideration. Each unit is comprised of one GameOn share and one-half of one GameOn warrant exercisable for a period of 24 months at a price of $0.52, and subject to acceleration in the event the GameOn shares trade at $0.78 or greater for a period of 10 consecutive trading days at any time following the date of issuance.

GameOn also agreed to issue such number of finder's warrants as is equal to up to 6% of the number of subscriber receipts sold under the financing. Each finder's warrant will be exercisable to acquire one GameOn share for a period of 24 months at a price of $0.52 subject to acceleration in the event the GameOn shares trade at $0.78 or greater for a period of 10 consecutive trading days.

The finder's fees will only be paid and the finder's warrants will only be issued if the escrow conditions are satisfied on or prior to 5pm PT on May 31, 2021. If the escrow conditions are not satisfied on or prior to the release deadline, the funds will be returned to the subscribers and the subscription receipts will be void and be of no further effect or value.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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