-- East Side Games Group (EAGR.TO), a Canada free-to-play mobile game group, is raising total gross proceeds of up to $3.5 million in a non-brokered private placement of 31,818,182 units at $0.11 each, the company said over the weekend.
Each Unit will be comprised of one common share and one full whole warrant. Each whole Warrant will be exercisable at $0.14 per share for a period of three years from issuance. The Warrants will be subject to standard anti-dilution adjustments, the company added.
Net proceeds from the private placement will be used to repay indebtedness owing to the Royal Bank of Canada (RY.TO. RY) and for operating expenses and general working capital.
Shares in EAGR were down 18.5% or $0.025 at $0.11 last Friday.