To accommodate investor demand, the Company increased the size of the initial debenture offering from $1.5 million to $7.5 million. Together with the first two rounds completed in February and April 2018, the private placement of debentures, which are convertible into shares of the Company's common stock at a fixed price of $0.40 per share, resulted in aggregate gross proceeds of approximately $8 million consisting of approximately $7 million in cash and approximately $1 million in conversions from debentures issued in 2017. The Company has paid off high-interest debt and intends to use the proceeds from the private placement for acquisitions, business development in the U.S. and Canadian market and for general working capital purposes.
"We are very pleased with the confidence that all our new investors, many of which are institutional, have placed in Newgioco's management team allowing us to close on amount significantly greater than our initial objective," stated Michele Ciavarella, Company Chairman and Chief Executive Officer. "The additional proceeds will be used to initiate our international and U.S. expansion plans through immediately available acquisition opportunities and to advance our objective of potentially listing the Company's shares on a national stock exchange. We believe both of these initiatives will extract shareholder value and result in strong growth and operational performance."
About Newgioco Group, Inc.
Newgioco Group, Inc., together with its subsidiaries, is a fully integrated, licensed gaming technology company. The Company conducts its business primarily through retail neighborhood betting shops and internet-based betting software platform under the registered brand Newgioco through our licensed website www.newgioco.it situated in Italy. The Company offers its clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, lottery, interactive games, and slots, as well as an innovative betting platform (www.odissea.at) providing both B2B and B2C bet processing. Additional information is available on our corporate website at www.newgiocogroup.com.
Investors may also find us on Facebook® and follow us on Twitter @NWGI_gaming.
Cautionary Statement Regarding Forward-Looking Statements
Except for the historical information contained herein, this press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "forecast," "plans," "intends," "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as amended by the Company's Quarterly Report on Form 10-Q. One or more of these factors have affected, and in the future, could affect our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. Therefore, because of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.CONTACT:
Investor Relations Contact
Newgioco Group, Inc.
investor@newgiocogroup.com
SOURCE: Newgioco Group, Inc.
