BitNile Metaverse, Inc. (NASDAQ:BNMV) (“BitNile” or the “Company“) announced today that it sold $6.875 million of principal face amount senior secured convertible notes with an original issue discount (the “Notes“) to sophisticated investors, for gross proceeds to the Company of $5.5 million (the “Financing“). The Notes mature on April 27, 2024 and are secured by all of the assets of the Company, and certain of its subsidiaries, including BitNile.com, Inc. (“BNC“).
The Notes are convertible, at the investor’s option, into shares of the Company’s common stock (“Common Stock“) at a conversion price of $0.1091 per share, subject to adjustment, with a floor price of $0.0168. In addition, the investors who participated in the Financing received warrants to purchase approximately 63 million shares of Common Stock (the “Warrants“), exercisable for five years at $0.1091 per share, subject to adjustment. The Company also provided the investors with registrations rights related to the shares of Common Stock issuable upon conversion of the Notes and exercise of the Warrants.
The proceeds from the Notes will be used for the following purposes, (i) marketing, (ii) the spinoffs of the Company’s subsidiaries, (iii) general working capital purposes.
The Company’s Chief Executive Officer, Randy May, said “It’s been a pleasure working with Todd Ault and the BitNile.com team since the closure of our acquisition of BNC. The engaged user statistics have greatly exceeded our expectations since the launch two months ago and I expect continued growth with the advent of the launch of gaming in the metaverse next week.” The Company’s Chief Financial Officer, Jay Puchir, said “This financing is extremely strategic in nature for the Company and is expected to provide sufficient growth capital for the launch of gaming in the metaverse which we foresee as a major revenue driver for new revenue streams for the Company.”
For more information on BitNile and its subsidiaries, the Company recommends that stockholders, investors and any other interested parties read the Company’s public filings and press releases available under the Investor Relations section at www.bitnile.net or available at www.sec.gov.
