Super League

Kurta Law is investigating broker recommendations of Super League shares (NASDAQ: SLGG). These investments were high-risk, making them unsuitable for many investors. Brokers may have violated securities rules and regulations with recommendations of these shares. Regulation Best Interest requires brokers to consider their investor’s risk tolerance, among a variety of other factors. Brokerage firms are also required to perform their due diligence for a stock offering before approving the shares for recommendation to clients.  

If you believe you suffered investment losses due to broker fraud or misconduct, contact Kurta Law for a free case evaluation. Call (877) 600-00098 or email info@kurtalawfirm.com.  

The Offering  

The prospectus dated August 23, 2023, announced that Super League is offering 15,573,077 shares of common stock along with pre-funded warrants to purchase 1,350,000 shares of common stock. Warrants give the owner the right, but not the obligation, to purchase stocks for a certain price by a specified deadline.  

The per-share public offering price was $0.13 per share. Investors should know that penny stocks are always high risk.  

About Super League  

According to the prospectus, Super League is a game publisher and creator. It specializes in metaverse and other virtual gaming platforms.  

Risk Factors  

The prospectus states, “Our business is subject to substantial risk.” Brokers either knew or should have known about the risks associated with this investment.  

Management Discretion  

Management had broad discretion over the use of proceeds from this offering. They might use the proceeds in a way that investors do not approve. Further, management’s investments may not yield a significant return, if any.  

Immediate, Substantial Dilution  

The price per share of the common stock in this offering was substantially higher than the net tangible book value per share of the common stock. Because of this, investors would experience an immediate dilution when they purchased shares of this stock.  

Thinly Traded Shares  

Despite its NASDAQ listing, the prospectus concedes that there was initially likely to be a very limited trading market for common stock. It could not ensure that a robust trading market would ever develop or be sustained.  

Stock Price Volatility  

The trading price of the common stock could fluctuate substantially. These are some of the factors that could influence stock price volatility:  

• Changes to regulations  
• Inability to compete against current and future competitors  
• Additions or departures of key personnel  
• Sales of common stock  
• Super League’s ability to execute a business plan  
• Operating results that do not live up to expectations 
• Loss of any strategic relationship, sponsor, or licensor  
• Any major changes in management  

Aegis Capital Corp. Underwriting     

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.   

Kurta Law Can Help  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.