$2 Million closed Very Nice !!DraftTeam completes $2.04M first tranche of placement
DraftTeam Daily Fantasy Sports Corp (C:DTS)
Shares Issued 42,529,161
Last Close 8/31/2015 $0.10
Thursday September 03 2015 - News Release
Mr. David Antony reports
DRAFTTEAM DAILY FANTASY SPORTS CORP. ANNOUNCES CLOSING OF FIRST TRANCHE OF PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT IN CONNECTION WITH THE BUSINESS COMBINATION WITH FANTASY ACES, LLC
DraftTeam Daily Fantasy Sports Corp. has closed the first tranche of the previously announced private placement of subscription receipts of the corporation for gross proceeds of $2,041,500 with such funds to be held in escrow, pending the completion of the proposed business combination between the corporation and Fantasy Aces LLC. The Corporation issued an aggregate of 20,415,000 Subscription Receipts at a price of $0.10 per Subscription Receipt pursuant to this first tranche of the Private Placement, of which 16,815,000 Subscription Receipts for gross proceeds of $1,681,500 were issued on a brokered basis (the "Brokered Private Placement") and 3,600,000 Subscription Receipts for gross proceeds of $360,000 were issued on a non-brokered basis. The Corporation expects to close a second tranche of the Private Placement prior to the closing of the Business Combination. Beacon Securities Limited acted as lead agent, together with Industrial Alliance Securities Inc., and Salman Partners Inc. (collectively, the "Agents") in connection with the Brokered Private Placement.
Each Subscription Receipt issued pursuant to the Private Placement entitles the holder thereof to receive, without payment of additional consideration, one common share and one warrant of the resulting issuer (the "Resulting Issuer") upon completion of the Business Combination and satisfaction of the conditions for conversion. Each warrant will entitle the holder thereof to acquire one common share of the Resulting Issuer for a period of two years at an exercise price of $0.15 per share. The expiry date of the warrants may be accelerated by the Resulting Issuer, at its sole option, at any time in the event that the closing price of the Resulting Issuer Shares on the TSX Venture Exchange (the "TSXV"), or such other exchange on which the Resulting Issuer Shares may primarily trade from time to time, at a volume-weighted average price of $0.225 for a period of at least 20 consecutive trading days by giving notice to the holders thereof and, in such case, the warrants will expire on the date which is the earlier of: (i) the 30th day after the date on which notice is given by the Resulting Issuer in accordance with the terms of the warrants; and (ii) the actual expiry date of the warrants.
The gross proceeds from the sale of the Subscription Receipts, less the Agents' reasonable out-of-pocket expenses for the Brokered Private Placement, will be held by an escrow agent and invested in short term obligations issued or guaranteed by the Government of Canada (or other approved investments) pending satisfactory completion of all conditions to the Business Combination. Upon completion of such conditions, the escrowed funds will be released to the Resulting Issuer. The net proceeds from the Private Placement will be used to allow the Resulting Issuer to accelerate its business plan in the fast growing Daily Fantasy Sports industry.
In connection with the Brokered Private Placement, DraftTeam issued a total of 1,177,050 compensation options to the Agents, with each option entitling the holder thereof to acquire one common share of the Resulting Issuer at a price of $0.10 per share for a period of 18 month from the closing date of the Business Combination.
Shareholders of DraftTeam will be asked to approve the Business Combination and related matters at the annual and special meeting to be held on September 30, 2015 (the "Meeting"). For more information regarding the Meeting and the Business Combination, shareholders of DraftTeam are encouraged to review the management information circular of DraftTeam dated August 28, 2015, available on SEDAR at www.sedar.com. The TSXV has conditionally accepted the Business Combination subject to DraftTeam fulfilling all of the requirements of the TSXV.