Under the deal, 3,166,227 shares of Elys common stock will be offered at a purchase price of $0.9475 per share through a registered direct offering.
The closing of the offering is expected to occur on or around 15 June, subject to the satisfaction of customary closing conditions.
In addition, Elys also agreed to issue to the investor warrants to purchase up to 3,166,227 shares of common stock through a concurrent private.
These warrants have an exercise price of $0.9475 per share, are exercisable six months from the date of issuance and have a term of five years from the initial exercise date.
Gross proceeds from the offering are expected to be approximately $3.0m (£2.5m/€2.9m), before deducting the placement agent’s fees and other offering expenses.
Elys said it intends to use the net proceeds from the offering for working capital and other general corporate purposes.
The offering comes after Elys last month reported revenue of $12.2m in the first quarter of 2022, down 13.5% compared to the same period in 2021.
Betting turnover for the quarter came to $217.5m, down by 10.5%, while gross gaming revenue was $15.3m, a decrease of 11.9%.