Agritek Holdings, Inc. Announces Private Placement for Up to $1,500,000 of Common Stock for Maxx eSports Inc. Subsidiary
Los Angeles,CA - (NewMediaWire) - July 30, 2020 - Agritek Holdings, Inc. (AGTK) www.AgritekHoldings.com, a fully integrated, active real estate investor and white label provider for popular hemp brands, today announced that subject to regulatory approval and formal documentation, the Company is offering a non-brokered, private placement financing (“Private Placement”) for gross proceeds of up to $1,500,000 for its new wholly owned subsidiary Maxx eSports Inc. The Private Placement will be for up to 6,000,000 Units at a price of $0.25 per unit. Each Unit will be comprised of one Common Share in the capital stock of Maxx eSports Inc. and a one Share Purchase Warrant (“Warrant”). One Warrant will entitle the holder to purchase one Common Share at an exercise price of $0.50 per share, which is exercisable for a period of two (2) years from the date of closing.
Agritek Holdings recently announced that the Company has formed a new, majority owned subsidiary, Maxx eSports Inc., in preparation for the spin-off and S-1 registration statement of the Company’s present eSports assets. Maxx eSports Inc. has negotiated management contracts and live streaming tournament events with four Tier One eSports Teams based in Europe and Asian markets. Maxx eSports will focus on team management, live streaming events and has negotiated national venues for eSports tournaments in regulated gaming jurisdictions around the world.
The proceeds of this Private Placement will be used for current eSports team tournaments, live streaming technology platform, activities, and current general working capital purposes. None of the proceeds of the Private Placement will be payable to non-arm’s length parties, except for general corporate purposes in the ordinary course of business.
The common stock and warrants to be sold in this private placement have been offered only to certain institutional and accredited investors affiliated with the Company in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). Neither the common stock nor the warrants have been registered under the Securities Act or any state or other securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state securities laws. The Securities and Exchange Commission has not passed upon the merits of or given its approval to the common stock and warrants, the terms of the private placement, or the accuracy or completeness of any private placement materials. The common stock and the warrants sold in the private placement are subject to legal and contractual restrictions on transfer.
If the Offering is over-subscribed, it is possible that a shareholder's subscription may not be accepted by the Company even though it is received. Additionally, in the event of an imbalance of large subscriptions compared to smaller subscriptions management of the Company reserves the right in its discretion to reduce large subscriptions in favor of smaller subscriptions. All shareholders of Agritek Holdings will receive a dividend share of Maxx eSports on the dividend record date when announced upon the S-1 filing expected to be filed in August 2020.
“We are getting a very positive response and firm commitments of funds from the majority of our institutional and accredited investors taking part in this private placement raise on behalf of our eSports subsidiary Maxx eSports. I believe we will be able to complete the placement meeting our capital requirements over the next few weeks, allowing us to immediately file the S-1 registration statement and start the “spin-off” process on behalf of our investors and shareholders,” stated Friedman.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Agritek Holdings is in final review of its financial reports including its 10K Annual Report for December 31, 2019, and first quarter 10Q for 2020 with its registered auditing firm. The Company as reported earlier this month expects to file the reports within the next week and renew its application and uplisting to the OTCQB exchange.
About Agritek Holdings, Inc.
Agritek Holdings, Inc. (www.AgritekHoldings.com), is a fully integrated, active real estate investor and advisor of white label brands in the legal cannabis sector. Specifically, Agritek Holdings provides strategic capital and functional expertise to accelerate the commercialization of its diversified portfolio of cannabis related real estate holdings. Agritek Holdings recently acquired Full Spectrum Biosciences as a wholly owned subsidiary which manufactures and distributes its hemp-derived CBD products under the Rehab Rx, MD Vapes, Hemp Pops and Higher Society trademarked brands. Full Spectrum brands are currently sold online (www.RehabRx.com) as well as approved for sale on Amazon (www.Amazon.com) currently being sold in the United States and parts of Canada. Agritek Holdings, Inc. does not directly grow, harvest, or distribute or sell cannabis or any substances that violate or contravene United States law or the Controlled Substances Act.
About Maxx eSports and iBet Gaming Corporation
Maxx eSports and iBet Gaming Corporation intend to offer users in legal jurisdictions throughout the world the ability to participate in esports entertainment and video game tournaments via live streaming events. The eSports market is expected to grow exponentially because of various driving factors, such as increasing popularity of video games and growing awareness about eSports. Maxx eSports and its division iBet Gaming Corporation is led by a team of industry professionals and technical experts from the online and regulated gaming industries, with a new focus esports. According to Statista, worldwide revenue for eSports will top $1 billion in 2019, continue to grow rapidly in the coming years and by 2022, 650 million people are expected to be watching eSports online.
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Agritek Holdings, Inc. to be materially different from the statements made herein. Agritek Holdings Inc. undertakes no obligation to publicly update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and AGTK’s actual results could differ materially from those anticipated in these forward-looking statements.
Agritek Holdings, Inc.