Publicly traded, London-based esports organization Guild Esports (LSE: GILD; OTCQB: GULDF) has filed additional regulatory news service documents linked to its most recent ยฃ250K GBP ($319K USD) financing round from Compassare Holdings.
In a May 13 filing, Guild Esports informed its shareholders that the lender exercised its right to convert the ยฃ250K convertible loan intoย 66,666,667 new shares. As part of that filing, the British esports organization also shared that it โdoes not currently have sufficient headroomโ to issue those shares without the publication of a new prospectus. Guild is in the process of preparing and publishing that new prospectus.
In a May 28 filing, Guild Esportsโ shareholders were informed of a new major shareholder in the company. The document outlined Compassare Holdings Chairman Koshy Vinod as the person obligated to make the notification. Furthermore, the document informs shareholders that Compassare now controls 8.28% of voting rights.
Compassare Holdings, better known as Compassare Group (ููู ุจุงุณูุฑ ุฌุฑูุจ – ุด ู ุญ) in the United Arab Emirates (UAE), is an investment firm established as a free zone company in the Dubai Silicon Oasis.
The transaction is the conclusion of a โconvertible loan note agreementโ with Compassare Holdings for ยฃ250K, or roughly $319K. Under the terms of the agreement, Compassare provided Guild with the principal amount of ยฃ250K on a one-year term at an interest rate of 8%. In April Guild said that it expected to pay back the note by March 25, 2025, with interest. The company will use the proceeds for โworking capital requirements.โ
Compassare executed its right under the agreement to convert the principal amount into โnew ordinary shares of ยฃ0.001 each in the Company at any time at least 30 days before the final payment date, with a conversion price of ยฃ0.00375, equal to a 25% premium to the Companyโs share price as of March 28, 2024.โ
Guild Esports, which has a minority investment from football star David Beckham, currently competes in Counter-Strike 2, EA FC 24, Fortnite, Street Fighter 6, and sim racing. Guild is also receiving funds from the Saudi Arabian government-backed gaming and esports festival, the Esports World Cup and is one of 30 international teams selected to be part of its incentive program, the Esports World Cup Club Support Program.