Madison Square Garden Sports Corp. (NYSE: MSGS) today announced it will invest up to C$13.4 million (US$10 million) in Canada-basedXtract One, a leading security technology company that prioritizes the patron access experience by leveraging AI. The initial investment of C$8.4 million (US$6.3 million) is effective immediately, with the subsequent investment of C$5 million (US$3.7 million) being conditional on the approval of Xtract One’s shareholders and all applicable regulatory approvals.
The Investment is comprised of the sale of up to 31,925,595 units at a price of C$0.42 per Unit. Each Unit will be comprised of one common share of Xtract One and one Common Share purchase warrant exercisable at a price of C$0.60 for a period of five years following the date of its issuance. The initial tranche of the Investment comprised the issuance of 20,000,000 Units for aggregate gross proceeds of C$8,400,000. The proposed second tranche of the Investment will be comprised of the issuance of 11,925,595 Units for aggregate gross proceeds of C$5,008,749.90.
The investment by MSG Sports took place through its wholly-owned subsidiary MSG Sports Ventures, LLC. Prior to its investment, MSGSV did not hold any securities of Xtract One. As a result of its investment for total gross proceeds of C$8.4 million, MSGSV holds 20,000,000 Common Shares and 20,000,000 Warrants, representing approximately 10.92% of the issued and outstanding Common Shares on a non-diluted basis and 19.69% on a partially diluted basis.
MSGS fell 21 cents to $186.66.
