BetMakers Technology Group Ltd (ASX:BET) has received firm commitments from institutional and sophisticated investors to raise A$50 million via a placement to fund a strategic acquisition and drive the US expansion and fixed-odds opportunity.
This will see BET issue about 83.3 million new fully paid ordinary shares at $A.60 a share and the company also intends to offer existing shareholders the opportunity to participate in a Share Purchase Plan (SPP) on the same terms.
The placement received strong investor demand from domestic and international institutions, including support from existing shareholders and new investors.
Funds will primarily be used to fund the acquisition of the Racing and Digital assets of leading international online sports betting company Sportech plc (LON:SPO) for A$56.2 million.
Strong support welcomed
BetMakers’ managing director Todd Buckingham said: “BetMakers welcomes the strong support of institutional and sophisticated investors, both existing and new, in the placement.
“We also look forward to conducting a Share Purchase Plan offer as an opportunity for all existing shareholders to participate.”
To fund acquisition
Funds raised from the placement, in conjunction with existing cash, will support the Sportech PLC acquisition.
The proposed acquisition of Sportech’s Racing and Digital assets in the US, UK and Europe is intended to accelerate BetMakers’ international growth plans with a significantly expanded global customer base.
BetMakers considers the acquisition to be transformational for the company’s financial and growth prospects.
A global leader in enterprise Tote betting solutions, Sportech’s Racing and Digital products play a pivotal role in the international distribution of racing pools for its clients in the US, Europe, Latin America and Asia.
Placement details
The placement price of A$0.60 represents a 9.1% discount to the last close price of A$0.66, and a 6.6% discount to the 5-day volume-weighted average price of A$0.64, both as on Monday, November 30, 2020.
The placement was conducted using BetMakers’ existing placement capacity under ASX listing rules 7.1 and 7.1A and new shares issued will rank pari passu with existing shares.
Completion of the placement is conditional upon Sportech shareholder approval of the acquisition, which is expected to occur in or around the week starting on December 21, 2020.
Sportech’s board considers the acquisition to be in the best interest of its shareholders and intends to unanimously recommend in favour of the acquisition.
Canaccord Genuity (Australia) Limited acted as lead manager and underwriter to the placement while Taylor Collison Limited acted as co-manager.
Share Purchase Plan
BetMakers also plans to conduct an SPP to existing shareholders in the company with a registered address in Australia and New Zealand as on Monday, November 30, 2020.
The SPP will provide each eligible shareholder with the opportunity to apply for up to A$30,000 worth of new fully paid ordinary shares at the same price as the placement price.
This will not open until after the acquisition has been approved by Sportech shareholders at the meeting.
