Bullish indicating open at $55-$60, IPO prices at $37
SANTA MONICA - Super League Enterprise, Inc. (NASDAQ:SLE), currently trading near InvestingPro’s Fair Value estimate, announced Monday it has secured $4.5 million through a convertible note and significantly reduced its 2025 debt obligations by approximately 90%, according to a company press release. The move comes as the company faces significant debt challenges, with a concerning current ratio of 0.33.
The convertible note is priced at $6.81 per share, representing a 30% premium above the Nasdaq minimum price determined on July 9. The company has also secured a $20 million equity line of credit to support future growth opportunities, subject to market conditions. This financing comes as the stock shows high volatility, having declined over 86% in the past year while recently posting an 18.8% gain in the past week.
As part of the financing arrangement, Super League converted high-interest debt facilities into equity securities, reducing its remaining debt service obligations for fiscal 2025 from approximately $5.7 million to $600,000.
"The company is much stronger today than a week ago thanks to the support of investors and creditors who believe in our future," said Matt Edelman, President and CEO of Super League Enterprise.
The financial restructuring follows Super League’s recent regaining of compliance with Nasdaq’s minimum bid requirement. The company, which specializes in engaging audiences through playable media and experiences within mobile games and immersive platforms, stated these transactions represent a step toward achieving sustained profitability.
Aegis Capital Corp. served as the exclusive placement agent for the financing, with Disclosure Law Group acting as counsel to the company.
Super League aims to achieve EBITDA positivity in the fourth quarter of this year, according to the press release. The company currently reports an EBITDA of -$13.74 million for the last twelve months. For deeper insights into SLE’s financial health and growth prospects, including 14 additional key ProTips, visit InvestingPro to access the comprehensive Pro Research Report.
In other recent news, Super League Enterprise, Inc. announced it has entered into an Exchange Agreement with the Michael Keller Trust to cancel a promissory note valued at approximately $1.88 million. In return, the company will issue 1.5 million shares of Series AAAA Jr. Convertible Preferred Stock and make cash payments totaling $378,002. Additionally, Super League Enterprise has regained compliance with Nasdaq’s minimum bid price requirement, with its stock price reaching the $1.00 per share threshold. The company also executed a 1-for-40 reverse stock split to address a previous deficiency notice from Nasdaq regarding this requirement. In corporate governance developments, Michael Keller has resigned from the Board of Directors, with the company noting his departure was not due to any disagreements. During its annual stockholder meeting, Super League Enterprise approved several proposals, including amendments to its Charter and the 2025 Omnibus Equity Incentive Plan. The meeting also ratified the appointment of Withum Smith + Brown, PC as the independent auditors for the fiscal year ending December 31, 2025. These developments were reported based on press releases and filings with the Securities and Exchange Commission.
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