Esports Entertainment Group Inc. [NASDAQ: GMBL] stock went on an upward path that rose over 2.46% on Monday, amounting to a one-week price decrease of less than -35.17%. The company report on August 15, 2023 at 3:31 PM that Esports Entertainment Group Announces Registered Direct Offering and Settlement Agreement.
St. Julians, Malta–(Newsfile Corp. – August 15, 2023) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLP) (NASDAQ: GMBLW) (NASDAQ: GMBLZ) (or the “Company”) today announced that it has entered into a securities purchase agreement with an institutional investor (“Investor”) for the purchase and sale of 1,000,000 shares of the Company’s common stock and pre-funded warrants to purchase 4,167,959 shares of common stock in a registered direct offering at an effective purchase price of $0.1935 per share or per pre-funded warrant. The offering is scheduled to close by August 16, 2023, subject to customary closing conditions.
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The Company also entered into a settlement agreement (“Settlement Agreement”) with the holder of its Series C Convertible Preferred Stock and Series D Convertible Preferred Stock (“Holder”) to issue common stock in partial settlement of Registration Rights Fees (“RRA Fees”) payable by the Company in connection with a delay in the filing of a registration statement for the purpose of registering the resale of the common stock issuable under the Holder’s Series D Convertible Preferred Stock and common warrants, despite the Company’s best efforts to avoid such delay. The Company agreed to initially issue 10,000 shares at $0.10 per share (“Initial Settlement Price Per Share”) in partial settlement of RRA Fees. The Company further agreed to settle an additional $1,000 (or such other amount as the parties shall mutually agree) on each seven (7) day anniversary of the initial settlement (or another date mutually agreed between the parties), to satisfy up to the remaining balance of the RRA Fees at a price per share equal to the lower of (1) 90% of the lowest volume weighted average price (“VWAP”) per share of the common stock during the ten (10) consecutive trading day period ending and including the trading day immediately preceding the additional share settlement, and (2) the Initial Settlement Price Per Share. As part of the settlement, the Holder also agreed to waive, in part, applicable antidilution provisions within the Series C Convertible Preferred Stock and Series D Convertible Preferred Stock that would allow for the Holder to adjust the conversion price of each preferred stock security based on share issuances under the Settlement Agreement. As a condition for the waiver, the Holder and the Company agreed to effectively establish a new conversion price at the higher of the current conversion price in effect (as may be adjusted) and 90% of the lowest VWAP of the common stock during the ten (10) consecutive trading day period including the applicable conversion date.
Over the last 12 months, GMBL stock dropped by -99.74%. The one-year Esports Entertainment Group Inc. stock forecast points to a potential upside of 94.0. The average equity rating for GMBL stock is currently 3.00, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $4.82 million, with 37.57 million shares outstanding and 22.33 million shares in the current float. Compared to the average trading volume of 5.04M shares, GMBL stock reached a trading volume of 5600740 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Esports Entertainment Group Inc. [GMBL]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GMBL shares is $2.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GMBL stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
ROTH Capital have made an estimate for Esports Entertainment Group Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 02, 2021.
The Average True Range (ATR) for Esports Entertainment Group Inc. is set at 0.07, with the Price to Sales ratio for GMBL stock in the period of the last 12 months amounting to 0.15.
GMBL Stock Performance Analysis:
Esports Entertainment Group Inc. [GMBL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -35.17. With this latest performance, GMBL shares dropped by -72.04% in over the last four-week period, additionally sinking by -96.01% over the last 6 months – not to mention a drop of -99.74% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GMBL stock in for the last two-week period is set at 15.30, with the RSI for the last a single of trading hit 16.18, and the three-weeks RSI is set at 17.77 for Esports Entertainment Group Inc. [GMBL]. The present Moving Average for the last 50 days of trading for this stock 0.6778, while it was recorded at 0.1325 for the last single week of trading, and 4.4725 for the last 200 days.
Insight into Esports Entertainment Group Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Esports Entertainment Group Inc. [GMBL] shares currently have an operating margin of -73.02 and a Gross Margin at +37.37. Esports Entertainment Group Inc.’s Net Margin is presently recorded at -175.20.
Return on Total Capital for GMBL is now -73.99, given the latest momentum, and Return on Invested Capital for the company is -258.69. Return on Equity for this stock declined to -288.12, with Return on Assets sitting at -110.76. Additionally, GMBL Total Debt to Total Capital is recorded at 111.81, with Total Debt to Total Assets ending up at 55.77.
Receivables Turnover for the company is 17.12 with a Total Asset Turnover recorded at a value of 0.63.Esports Entertainment Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.20 and a Current Ratio set at 0.20.
Esports Entertainment Group Inc. [GMBL] Institutonal Ownership Details
The top three institutional holders of GMBL stocks are: VANGUARD GROUP INC with ownership of 1.31 billion shares, which is approximately 8.2089%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $170.67 trillion in GMBL stocks shares; and BERKSHIRE HATHAWAY INC, currently with $150.98 trillion in GMBL stock with ownership which is approximately 5.7381%.
