Quick take:
- Super League Gaming has raised $23.8 million from selling convertible preferred stock.
- The fundraising, which is set to close later this week, attracted both new and existing investors.
- The company said it will use the funds to settle debt, fund ongoing operations, and finance growth initiatives.
Super League Gaming Inc. (NASDAQ: SLGG) has announced a $23.8 million funding round from new and existing investors. The Metaverse gaming company sold convertible preferred stock in a round expected to close later this week.
Super League Gaming operates a network of metaverse games, and game monetization tools across multiple platforms. The latest fundraising was conducted across two private rounds with the preferred stock issued at $1000 per share.
The stock is convertible into shares of common stock, subject to certain beneficial ownership limitations including the registration rights granted to investors, which are described in the company’s latest Form 8-K filing.
Commenting on the fundraising, Ann Hand, CEO of Super League said: “Completing this financing was vital to support Super League’s long-term growth strategy. We significantly enhanced our balance sheet, while obtaining the necessary capital to fund operations and fuel our near-term growth initiatives. We believe this is also a testament to the strength of our team, our strategic vision and confidence in our ability to execute.”
Affiliates associated with the placement agent SternAegis Ventures also participated in the fundraising.
Super League Gaming’s products can be found in some of the leading traditional gaming platforms including Roblox, Minecraft, and Fortnite. The company has also established itself as one of the leading game publishers in web3 platforms including Animoca Brands’ The Sandbox and Decentraland.
This fundraising comes at a time when the metaverse industry is deemed to be at a crossroads following last year’s late decline. Funding in the industry fell during the second half of 2022 and is yet to recover to levels reached in the early months of the year.
However, experts remain relatively positive based on findings from a recent feature story where we asked industry leaders about their views of the immediate and long-term future of the metaverse.
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