Esports Entertainment Group Inc (OTC:GMBL) Stock Continues to Trend Higher

This morning, most investors are going to be looking closely into those stocks that may have been in focus on Wednesday, and one of the stocks to follow could be that of Esports Entertainment Group Inc. (OTC:GMBL). The company is one of the leading players in providing business-to-business esports content and solutions and is also involved in the iGaming space.

On March 13, the company entered the news cycle after it announced that it had entered into a note purchasing agreement on March 7, 2024, with the holders of its Series D convertible preferred stock and Series C convertible preferred stock. Due to the agreement, Esports Entertainment Group issued the holder a promissory note for around $1.42 million in cash and some specific amendments to the securities. It was also noted that the note was repayable over a period of two years and would carry an interest rate of 10% a year. The interest would be recorded by adding the accrued interest to the principal balance that remained outstanding on the note on the last business day of each calendar quarter.

The amendments made to the above-mentioned securities included a six-month pause on specific kinds of conversions, limits on conversions after that period, and a freeze on dividends for a period of two years since the date of the agreement. Esports Entertainment Group had also been given the green signal to raise a maximum of $10 million that it could use for operational needs and not for the repayment of the preferred stock.

The Chief Executive Officer of Esports Entertainment Group, Alex Igelman, spoke about the latest move from the company as well. He noted that the financing was non-dilutive and non-convertible in nature, which also demonstrated the strength of the overall vision of the management.