Esports Entertainment Group, Inc. (GMBL), an iGaming and entertainment company, has plunged 18.96% in aftermarket trading session. Consequently, the stock is trading at $0.94 at the time of the writing. During Friday’s mid-day session, the stock declined 6.45% and closed the day at $1.16. The stock plummeted in the aftermarket as soon as the company announced the offering of common stock.
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Commencement of Public Offering
On Friday, GMBL reported the initiation of an underwritten public offering of common stock as well as warrants for the purchase of the common stock. The offering was subjected to the market and other related conditions. There were no assurances regarding the completion of the offering and its actual size and terms. Maxim Group LLC and Joseph Gunnar & Co., LLC were serving as the managers for the offering.
GMBL iGaming Division on Rise
On the same day, i.e. Friday, GMBL released an update regarding the strong start its iGaming division had to the year 2022. The company said that during 7 consecutive weeks, the net gaming revenues were more than $1 million. The iGaming division attained the highest revenue during January 2022, as it generated more than $6 million in terms of revenue during the period.
GAMMAX to Distribute OMEGA
On 23rd February, GMBL announced that GAMMAX, a gaming startup based in the Netherlands, has agreed with the company to become the sole distributor of the OMEGA solution in the Netherland. The company further said that at GAMMAX Gaming & Esports Centers across the Netherlands, OMEGA would be installed during a period of the next five years. OMEGA is a solution for varied entertainment and business venues, which allows the addition of esports as a new stream of revenue for them.
What’s Next for GMBL?
Looking forward, analysts believe that GMBL stock currently holds several negative signals. Hence, it is expected to perform weakly in the next couple of weeks. Investors should take prudent decisions regarding investment in GMBL stock.
