Backstageplay Announces Closing of First Tranche of Non-Brokered Private Placement of Units

Rhea-AI Summary

Backstageplay (TSXV: BP.H) has completed the first tranche of its non-brokered private placement, raising $100,000 through the issuance of 1,250,000 common shares at $0.08 per share. Each unit includes one common share and one warrant, with warrants exercisable at $0.50 per share for 12 months.

The company paid $6,000 in finder's fees to BMO Nesbitt Burns Inc. Proceeds will fund the development of a new social gaming platform, content creation, third-party solution integration, and working capital. Multiple closings may occur, subject to regulatory approvals.

Positive

• Successfully raised $100,000 in first tranche financing
• Funds allocated for development of new social gaming platform and content
• Potential for additional capital through multiple closing tranches

Negative

• Significant warrant dilution potential at $0.50 exercise price
• 4-month hold period restricts immediate trading of new shares
• Additional financing may be needed as initial raise is relatively small

Vancouver, British Columbia--(Newsfile Corp. - June 24, 2025) - Backstageplay Inc. (TSXV: BP.H) (the "Company") announced that following receipt of TSXV's conditional approval for the non-brokered unit private placement announced on May 30, 2025 (the "Offering") it has completed the first tranche of the Offering and issued an aggregate of 1,250,000 common shares at a price of $0.08 per share, for gross aggregate proceeds of $100,000.

Each Unit consists of one common share of the Company and one warrant. Each whole warrant entitles the holder to purchase one share at a price of $0.50 per warrant share for a 12 month period from the closing of the Offering. All securities sold in the Offering will be subject to a statutory hold period of four months and a day from the date of issuance.

The Company has paid finder's fees on the Offering in the amount of $6,000 to BMO Nesbitt Burns Inc. The Company may complete multiple closings of the Offering, as subscriptions are received. Each closing is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals.

The total net proceeds from the Offering will be used for the development of a new social gaming platform and content, integration of third-party solutions as well as general corporate working capital.

There is no material fact or material change related to the Company that has not been generally disclosed.

The Offering remains subject to Exchange approval.

For further information please contact:

Sean Hodgins, CFO (778) 318-1514

Scott White, CEO (416) 704-6611

Neither the TSX Venture Exchange nor the Canadian Investment Regulatory Organization accepts responsibility for the adequacy or accuracy of this release.

All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, including statements regarding the closing of the non-brokered financing, the proposed use of funds, and expectation of multiple closings of the private placement, are "forward-looking statements". Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties, and other factors that may cause the Company's actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. Factors that may cause actual results to vary from those made in the forward looking statements described in this document include: timing of completion of financing; changes in general economic conditions and conditions in the financial markets; delays in obtaining approvals; and, litigation, legislative, environmental, and other judicial, regulatory, political, and competitive developments;. This list is not exhaustive of the factors that may affect the forward looking statements. These and other factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking information. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events, or otherwise, except in accordance with applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any securities in the United States or any other jurisdiction in which such offer, solicitation, or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or unless an exemption from such registration is available.

/Not for distribution to U.S. news wire services or dissemination in the United States/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/256660

FAQ

How much did Backstageplay (TSXV: BP.H) raise in its first tranche private placement?

Backstageplay raised $100,000 by issuing 1,250,000 common shares at $0.08 per share in the first tranche of its private placement.

What are the terms of Backstageplay's warrant offering in June 2025?

Each warrant allows holders to purchase one share at $0.50 per share for a 12-month period from the closing of the offering.

How will Backstageplay use the proceeds from its private placement?

The proceeds will be used for developing a new social gaming platform, creating content, integrating third-party solutions, and general corporate working capital.

What restrictions apply to the new shares issued by Backstageplay?

The securities are subject to a four-month and one-day statutory hold period from the date of issuance.

Who acted as the finder for Backstageplay's private placement and what fees were paid?

BMO Nesbitt Burns Inc. acted as finder and received fees of $6,000.