Game Your Game Secures $8M via Preferred Stock Sale to Streeterville Capital

summarizeSummary

A $8 million Series A Preferred Stock sale to Streeterville Capital brings immediate capital but carries conversion terms that could substantially dilute common shareholders.

check_boxKey Events · Financing and Capital Events · GYGY

• $8M Preferred Stock Issuance

  Completing the second closing under the Preferred Purchase Agreement, 8,000 shares of Series A Preferred Stock were issued to Streeterville Capital for $8 million.

• Conversion Terms and Dilution Risk

  With a stated value of $1,111.11 per share and a conversion price of $8.00 (floor $4.00), the preferred stock could convert into up to 2 million common shares at the floor—a substantial dilution against the 16.07 million shares registered for resale.

• Senior Security and Dividend Burden

  Ranking senior to common stock, the preferred shares accrue a 10% annual dividend, or 15% upon default, payable in cash or additional shares, thereby increasing the company's financial commitments.

• Registration Rights and Penalties

  A resale registration for the underlying common shares must be filed within 20 days of the Direct Listing; if not effective within 60 days, a 1% monthly penalty applies to the outstanding preferred balance.

auto_awesomeAnalysis · GYGY · Technology

The second closing of the Preferred Purchase Agreement with Streeterville Capital has been completed, bringing in $8 million through the issuance of 8,000 Series A Preferred shares. These shares carry a 10% annual dividend—rising to 15% upon default—and rank senior to common stock, which immediately elevates the company's financial obligations. Conversion is set at $8.00 per share with a $4.00 floor, a structure that introduces significant dilution risk: if triggered, the conversion could pressure the common stock, especially should the price adjust to market levels. Adding to the urgency, the company must file a resale registration for the underlying common shares within 20 days; failure to have it effective within 60 days incurs a monthly penalty of 1% of the outstanding balance.