BitNile Metaverse Obtains $5.5 Million in Secured Debt Financing
April 28 2023 - 8:00AM
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.
About BitNile Metaverse,
Inc.
Founded in 2011, BitNile owns 100% of
BitNile.com, Inc., including the BITNILE.COM metaverse platform
(the “Platform”). The Platform, which went live to the public on
March 1, 2023, allows users to engage with a new social networking
community and purchase both digital and physical products while
playing 3D immersive games. In addition to BNC, BitNile also owns
three non-core subsidiaries either directly or indirectly:
approximately 66% of Wolf Energy Services Inc. (OTCQB: WOEN)
indirectly, 100% of Zest Labs, Inc. directly and approximately 89%
of Agora Digital Holdings Inc. directly. BitNile also owns
approximately 70% of White River Energy Corp (OTCQB: WTRV).
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These
forward-looking statements generally include statements that are
predictive in nature and depend upon or refer to future events or
conditions, and include words such as “believes,” “plans,”
“anticipates,” “projects,” “estimates,” “expects,” “intends,”
“strategy,” “future,” “opportunity,” “may,” “will,” “should,”
“could,” “potential,” or similar expressions. Statements that are
not historical facts are forward-looking statements.
Forward-looking statements are based on current beliefs and
assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update any of them
publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8-K. All filings are available at www.sec.gov and on the
Company’s website at www.bitnile.net.
CONTACT: investorrelations@bitnile.com or 1-800-762-7293
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