Why Esports Entertainment Stock Just Crashed

Shares of Esports Entertainment Group (NASDAQ: GMBL) were looking like a bad bet Friday, down 13.7% as of 2 p.m. EST after the Malta-based provider of esports and esports gambling services announced that it will sell 2 million shares of common stock at $15 per share in a direct, at-the-market offering.  

Probably not coincidentally, the stock was trading Friday afternoon only marginally higher than the price of that secondary stock sale.

Image source: Getty Images.

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Source Fool.com