East Side Games raises $3.5M in private placement with major insider backing
East Side Games Group has announced a non-brokered private placement to raise up to $3.5 million. The company will issue 31,818,182 units at $0.11 each, with each unit including one common share and one warrant. Shareholder approval is required as the deal exceeds 25% of outstanding shares. The private placement involves a maximum of 66,254,545 common shares, which would represent 86.10% of the company’s total non-diluted shares. Each warrant allows the holder to buy an additional share at $0.14 within three years.
Derek Lew, a company director, plans to invest $1.0 million for 9,090,909 units. If he exercises all his warrants, his stake could rise from 9.89% to 16.84%. Insiders, including CEO Jason Bailey, will receive 18,181,818 shares, accounting for 23.63% of the total non-diluted shares. Funds raised will repay debt to the Royal Bank of Canada and cover operating costs. The deal is expected to close by May 8, 2026, pending TSX approval.
The proceeds will reduce debt and support working capital. Shareholders must approve the placement due to its size. The company has already secured written consent from key insiders.
