Mega Matrix Corp. (NYSE: MPU) shares lost ground Friday, after announced that it has entered into definitive agreements for the issuance and sale of an aggregate of 681,818 shares of its common stock (or common stock equivalents in lieu thereof), short-term series A warrants to purchase up to 681,818 shares of common stock and series B warrants to purchase up to 681,818 shares of common stock at a purchase price of $2.20 per share (or per common stock equivalent in lieu thereof) and accompanying warrants in a private placement.
The short-term series A warrants and series B warrants will have an exercise price of $2.20 per share and will be exercisable immediately upon issuance. The short-term series A warrants will expire 24 months following the issuance date and the series B warrants will expire five and one-half years following the issuance date. The closing of the private placement is expected to occur on or about August 5, subject to the satisfaction of customary closing conditions.
The gross proceeds to the MPU from the offering are expected to be approximately $1.5 million, before deducting the placement agent’s fees and other offering expenses payable by MPU, and excluding the proceeds, if any, from the exercise of the warrants. MPU currently intends to use the net proceeds from the offering for working capital and general corporate purposes.
MPU shares lost 12 cents, or 5%, to $2.28.
