Xtreme One Entertainment Announces $1.5 Million Private Placement

Rhea-AI Summary

Xtreme One Entertainment (OTC Pink: XONI) has secured a $1.5 million private placement agreement with a U.S.-based family office. The deal includes:

• Issuance of 15 million common stock shares at $0.10 per share
• 7.5 million warrants at $0.20 per share (expires March 31, 2028)
• 7.5 million warrants at $0.25 per share (expires March 31, 2029)

The warrant exercise prices are set above the current market price, potentially providing an additional $3.375 million in capital if exercised. The company plans to use the funds to support operations during peak event season and explore new sports properties. The transaction, structured under Rule 506 of Regulation D, is expected to close by week's end.

Positive

• Secured $1.5 million immediate capital injection
• Warrant pricing ($0.20-$0.25) set at premium to current market price
• Potential additional $3.375 million from warrant exercises
• Strategic investor bringing media and brand partnership connections

Negative

• 15 million new shares causing immediate dilution to existing shareholders
• Potential future dilution of up to 15 million additional shares from warrants
• Share issuance price of $0.10 may indicate current market weakness

News Market Reaction

+56.15%

1 alert

+56.15% News Effect

On the day this news was published, XONI gained 56.15%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Transaction Includes Common Stock and Warrants Priced at Significant Premium to Market

DETROIT, March 18, 2025 (GLOBE NEWSWIRE) -- Xtreme One Entertainment, Inc. (OTC Pink: XONI), parent company of XFC Global Inc., the rapidly rising star in the world of mixed martial arts (MMA), today announced a $1.5 million private placement of common stock and warrants to purchase additional shares with a private family office based in the U.S.

Under terms of the private placement agreement, the Company will issue common stock and warrants under Rule 506 of Regulation D under the Securities Act of 1933. In exchange for $1.5 million in cash, the company will issue 15 million shares of its common stock ($0.10 per share) as well as 7.5 million warrants to purchase common shares for $0.20 per share with an expiration of March 31, 2028, and an additional 7.5 million warrants to purchase common shares for $0.25 per share with an expiration of March 31, 2029.

“This is a clear endorsement from an institutional investor on the untapped value of our stock and the upside potential of our business,” commented Jeff Lambert, Chairman of the Board of Xtreme One Entertainment. “The current share price is well below the exercise price of the warrants we are issuing, confirming our belief that XONI is woefully undervalued in the market. This transaction and the pricing well above the market more accurately reflects the underlying value of Xtreme One and our XFC business, and it also unlocks the potential for a further $3.375 million in additional capital investment when the warrants are exercised.”

Chris Defendis, Xtreme One Entertainment’s President, added: “This capital infusion will help fund our operations through the peak event season, as well as fuel our vision to explore additional sports properties under the Xtreme One umbrella. More importantly, we’ve teamed up with an investor that is already bringing additional resources and connections to the table, spanning media and brand partnerships and additional investors. The synergies inherent in this transaction are ideal for propelling our business growth and driving long-term value for our shareholders.”

The Company expects the transaction to close by the end of the week.

About Xtreme One Entertainment, Inc.
Founded in 1995 as a diversified holding company, Xtreme One Entertainment, Inc. (OTC: XONI) is focused on media, entertainment, live sports, and event marketing. The Company, through its wholly owned subsidiary, XFC Global, Inc. (XFC), is the licensee of all the brands and intellectual property formerly produced and promoted by Xtreme Fighting Championships Inc. worldwide, including over 50 televised professional MMA events spanning hundreds of fights in the U.S. and Latin America produced since 2006. Xtreme One acquired XFC Global in 2023, and under the direction of the Company’s world-class Board and management team, the Company has produced five televised pro MMA events viewed by millions of fans. XFC fights are streamed live on beIN SPORTS, Pay Per View, Triller TV, the American Forces Network and a growing number of media platforms.

For more information, visit XtremeOne.com or XFCFight.com. For retail investor rewards, discounts on merchandise, and VIP access to upcoming events, join the Xtreme Shareholder Rewards program at TiiCKER.com/XONI.

Investor Relations for XONI 
Zachary Mizener
zmizener@lambert.com

FAQ

What are the terms of XONI's $1.5 million private placement deal?

XONI will issue 15M shares at $0.10/share plus 15M warrants split between $0.20 and $0.25 strike prices, expiring in 2028 and 2029 respectively.

How much additional capital could XONI receive from warrant exercises?

If all warrants are exercised, XONI could receive an additional $3.375 million in capital investment.

What will XONI use the $1.5 million private placement funds for?

The funds will support operations during peak event season and help explore additional sports properties under the Xtreme One umbrella.

When is XONI's private placement expected to close?

The transaction is expected to close by the end of the week (March 2025).