via NewMediaWire --
NextPlay Technologies, Inc.
(NASDAQ: NXTP) (the “Company”), a digital business
ecosystem for digital advertisers, consumers, video gamers and
travelers, today announced the closing of its previously announced
registered direct offering with certain institutional investors,
pursuant to which the Company sold approximately $30 million worth
of its common stock and warrants.
Under the terms of the securities purchase
agreement, the Company sold approximately 18.98 million shares of
its common stock and warrants to purchase approximately 14.24
million shares of common stock. The warrants will be exercisable
beginning May 1, 2022, have an exercise price of $1.97 per share,
and will expire five years from the initial exercise date. The
purchase price for one share of common stock and three-fourths of a
corresponding warrant was $1.58.
The Company intends to use a portion of the net
proceeds of the offering to pay down the balance of certain
existing indebtedness of the Company, and the remainder for other
working capital and general corporate purposes.
EF Hutton, division of Benchmark Investments, LLC,
acted as exclusive placement agent for the offering.
The securities described above were offered
pursuant to an effective "shelf" registration statement on Form S-3
(File No. 333-257457) filed with the Securities and Exchange
Commission (the "SEC") on June 25, 2021, amended on September 24,
2021, and October 27, 2021, and declared effective on October 29,
2021. The registered direct offering of the securities was made by
means of a prospectus supplement that forms a part of the effective
registration statement. The final prospectus supplement and
accompanying base prospectus relating to the securities being
offered in the registered direct offering were filed with the SEC
on November 3, 2021.
This press release does not constitute an offer to
sell or the solicitation of an offer to buy these securities, nor
will there be any sales of these securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction.
Copies of the prospectus supplement relating to
this registered direct offering, together with the accompanying
prospectus, can be obtained at the SEC's website
at www.sec.gov or from EF Hutton, division of Benchmark
Investments, LLC, 590 Madison Avenue, 39th Floor, New York, NY
10022, Attention: Syndicate Department, or via email at
syndicate@efhuttongroup.com or telephone at (212) 404-7002. Before
investing in this offering, interested parties should read in their
entirety the prospectus supplement and the accompanying prospectus
and the other documents that the Company has filed/will file with
the SEC that are incorporated by reference in such prospectus
supplement and the accompanying prospectus, which provide more
information about the Company and such offering.
About NextPlay Technologies
NextPlay Technologies, Inc. (Nasdaq: NXTP) is a
technology solutions company offering games, in-game advertising,
crypto-banking, connected TV and travel booking services to
consumers and corporations within a growing worldwide digital
ecosystem. NextPlay’s engaging products and services utilize
innovative AdTech, Artificial Intelligence and Fintech solutions to
leverage the strengths and channels of its existing and acquired
technologies. For more information about NextPlay Technologies,
visit www.NextPlayTechnologies.com and follow us on
Twitter @NextPlayTech and LinkedIn.
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of, and within the safe harbor
provided by the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Forward-looking statements give our current
expectations, opinions, belief or forecasts of future events and
performance. A statement identified by the use of forward-looking
words including, without limitation, “will,” “may,” “expects,”
“projects,” “anticipates,” “plans,” “believes,” “estimate,”
“should,” and certain of the other foregoing statements may be
deemed forward-looking statements. Although the Company believes
that the expectations reflected in such forward-looking statements
are reasonable, these statements involve risks and uncertainties
that may cause actual future activities and results to be
materially different from those suggested or described in this news
release. Factors that may cause such a difference include risks and
uncertainties related to our need for additional capital, which may
not be available on commercially acceptable terms, if at all, which
raises questions about our ability to continue as a going concern;
the fact that the COVID-19 pandemic has had, and is expected to
continue to have, a significant material adverse impact on the
travel industry and our business, operating results and liquidity;
amounts owed to us by third parties, which may not be paid timely,
if at all; certain amounts we owe under outstanding indebtedness,
which are secured by substantially all of our assets, and penalties
we may incur in connection therewith; the fact that we have
significant indebtedness, which could adversely affect our business
and financial condition; uncertainty and illiquidity in credit and
capital markets, which may impair our ability to obtain credit and
financing on acceptable terms and may adversely affect the
financial strength of our business partners; the officers and
directors of the Company have the ability to exercise significant
influence over the Company; stockholders may be diluted
significantly through our efforts to obtain financing, satisfy
obligations and complete acquisitions through the issuance of
additional shares of our common or preferred stock, including in
connection with the registered direct offering discussed herein; if
we are unable to adapt to changes in technology, our business could
be harmed; if we do not adequately protect our intellectual
property, our ability to compete could be impaired; our long-term
travel business success depends, in part, on our ability to expand
our property owner, manager and traveler bases outside of the
United States and, as a result, our travel business is susceptible
to risks associated with international operations; unfavorable
changes in, or interpretations of, government regulations or
taxation of the evolving ALR, Internet and e-commerce industries,
which could harm our operating results; risks associated with the
operations of, the business of, and the regulation of, Longroot and
NextBank (formerly IFEB); the market in which we participate being
highly competitive, and because of that we may be unable to compete
successfully with our current or future competitors; our potential
inability to adapt to changes in technology, which could harm our
business; the volatility of our stock price; risks associated with
the integration of the operations of HotPlay Enterprise Limited,
which acquisition we recently competed; the fact that we may be
subject to liability for the activities of our property owners and
managers, which could harm our reputation and increase our
operating costs; and that we have incurred significant losses to
date and require additional capital, which may not be available on
commercially acceptable terms, if at all. More information about
the risks and uncertainties faced by the Company are detailed from
time to time in the Company’s periodic reports filed with the SEC,
including its most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, under the headings “Risk Factors”. These
reports are available at www.sec.gov. Other unknown or
unpredictable factors also could have material adverse effects on
the Company’s future results and/or could cause our actual results
and financial condition to differ materially from those indicated
in the forward-looking statements. Investors are cautioned that any
forward-looking statements are not guarantees of future performance
and actual results or developments may differ materially from those
projected. The forward-looking statements in this press release are
made only as of the date hereof. The Company takes no obligation to
update or correct its own forward-looking statements, except as
required by law, or those prepared by third parties that are not
paid for by the Company. If we update one or more forward-looking
statements, no inference should be drawn that we will make
additional updates with respect to those or other forward-looking
statements.
Company Contact:
NextPlay Technologies, Inc.
Richard Marshall
Director of Corporate Development
Tel: (954) 888-9779
Email:
richard.marshall@nextplaytechnologies.com
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