MGO Global Inc. Enters into Securities Purchase Agreement for $5,999,250

MGO Global Inc. (NASDAQ:MGOL) recently announced its entry into a securities purchase agreement, as stated in the Form 8-K filing with the Securities and Exchange Commission. The agreement, finalized on December 23, 2024, involved the purchase and sale of an aggregate of $4,588,500 worth of the company’s securities.

The securities, totaling 4,830,000 units, comprised two types – 1,550,000 units with common stock and common warrants, and 3,280,000 units with pre-funded warrants and common warrants. MGO offered the units to purchasers at varying prices per unit, with the sale closing on December 24, 2024, resulting in total gross proceeds of $5,999,250 for the company, after excluding fees and other expenses.

The offering included shares of common stock, pre-funded warrants, and common warrants, issued under a registration statement initially filed with the SEC on October 4, 2024. The warrants, which are contingent upon MGO stockholder approval, will be exercisable at a price of $1.425 per share and will expire upon the earlier of five years from the initial exercise date or the completion of a business combination as specified in the agreement.

Moreover, the agreement included provisions for a reset of the exercise price of the common warrants under specific conditions. If reset, the number of shares of common stock issuable upon exercise will also be adjusted to ensure proceeds align with the pre-reset valuation.

In relation to the agreement, the company also established restrictions on issuing additional shares, entering into agreements, or filing registration statements within a specific timeframe following the offering.

Maxim Group LLC served as the sole placement agent for the offering, operating on a “best efforts” basis. The company agreed to certain fees and expenses as part of the agreement.

Furthermore, the filing disclosed that the company’s directors and officers entered into lock-up agreements to further regulate stock transactions post-offering.

The full documentation related to the Securities Purchase Agreement, Common Warrant, Pre-Funded Warrant, and the Placement Agency Agreement are included as exhibits in the Form 8-K.

In conjunction with the filing, MGO issued press releases on December 23 and December 24, 2024, confirming the pricing and closing of the offering, respectively. The company intends to use the net proceeds from the offering for general corporate purposes.

For more information on MGO Global Inc. and its business activities, interested parties can refer to the company’s official website.

The Form 8-K also contained cautionary statements regarding forward-looking information, detailing potential risks and uncertainties associated with the company’s operations and financial performance.

This update is in line with the company’s strategic financial decisions and regulatory requirements, signaling a proactive approach to enhancing its capital structure and funding opportunities.

This article is based on information from the MGO Global Inc. Form 8-K filing with the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read MGO Global’s 8K filing here.

MGO Global Company Profile

MGO Global, Inc operates as a lifestyle brand portfolio company. The company is involved in the fashion design, brand development and management, sourcing and manufacturing, licensing, IP protection, corporate finance, consumer engagement and experience, ecommerce, and retail sales and marketing activities related to the Messi brand.