FansUnite closes 25m dollar financing

FansUnite Entertainment (FANS.C) announced the completion of its IPO for gross proceeds of $ 24,792,390. FANS put 27,547,100 units on the offering, which sold at $ 0.90 each. Each unit consisted of one share and half a warrant for one common share. Each full warrant allows its holder to buy one FANS share for $ 1.30 and is exercisable for 36 months. The $ 24.7 million wasn't cheap, however. Since the offer price was well below the trading price at the time of the announcement, the stock fell from $ 1.23 to $ 1.03 after the increase was announced. Since then, the price has continued to decline, although it is still above what it was before the June rally. Obviously, there is still trust in the share, otherwise the greenshoe option would not have been exercised. FansUnite said they plan to use the funds for the following purposes: potential future acquisitions, developing more innovative games under the Askott Games brand, certifying the Chameleon Software Platform for use in the UK, and expanding the company's presence in the UK the United States to introduce and market a new business-to-consumer brand, entering into new partnerships and increasing brand awareness. It's also worth noting that the company has plenty of cash as Canada recently legalized betting on individual sporting events through the passage of Law C-218. This is a crucial turning point for sports betting in Canada, so having money to invest in a recently opened market could be of great benefit.