SharpLink Gaming announces $4.5 million stock offering

Published 20/05/2025, 14:16
SharpLink Gaming announces $4.5 million stock offering

MINNEAPOLIS - SharpLink Gaming, Inc. (NASDAQ: SBET), a marketing company serving the sports betting and iGaming industries, has announced a public stock offering aiming to raise approximately $4.5 million. The offering includes up to 1,530,612 shares of common stock priced at $2.94 each, coming at a critical time as the stock has declined nearly 78% over the past year according to InvestingPro data. The expected closing date of the offering is May 21, 2025, contingent upon customary closing conditions.

The net proceeds from the offering are designated for working capital and general corporate purposes as detailed in the prospectus filed with the Securities and Exchange Commission (SEC). This capital raise comes as InvestingPro analysis shows the company maintaining a healthy current ratio of 3.27, though facing challenges with negative EBITDA of $4 million in the last twelve months. A.G.P./Alliance Global Partners is the sole placement agent for the transaction.

SharpLink’s offering is pursuant to an effective registration statement on Form S-1, as amended (File No. 333-286964), filed with the SEC. The offering is made through a prospectus which is part of the registration statement. Interested parties can obtain a copy of the final prospectus, when available, from the SEC’s website or directly from A.G.P./Alliance Global Partners.

The Minneapolis-based company operates PAS.net, an affiliate marketing network recognized for its achievements in the European online gambling industry. SharpLink also manages a portfolio of state-specific affiliate marketing websites aimed at driving local sports betting and online casino gaming traffic to its partners licensed in respective states.

This press release contains forward-looking statements regarding the anticipated closing of the offering and the intended use of its proceeds. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially. InvestingPro analysis suggests the company is currently trading below its Fair Value, with 12 additional key insights available to subscribers, including detailed financial health metrics and growth prospects.

The information contained in this article is based on a press release statement from SharpLink Gaming, Inc.

In other recent news, SharpLink Gaming, Inc. has announced a 1-for-12 reverse stock split of its common stock, effective May 6, 2025, to meet Nasdaq’s minimum bid price requirement. Additionally, SharpLink has executed a strategic exchange agreement with Alpha Capital Anstalt, swapping its Series A-1 and Series B Preferred Stock for 464,195 common shares and 535,805 prefunded warrants. This move simplifies the company’s capital structure by eliminating the preferred stock. Furthermore, SharpLink has been granted an extension by the Nasdaq Listing Qualifications Panel until May 23, 2025, to comply with the exchange’s minimum bid price and stockholders’ equity requirements. The company must file a public disclosure detailing any equity-increasing transactions and provide updated income projections by the deadline. These developments highlight SharpLink’s ongoing efforts to optimize its financial structure and maintain its Nasdaq listing.

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