- Bookmaker PointsBet (PBH) is set to undertake a $400 million capital raising to strengthen its balance sheet
- The raise will consist of a one for nine pro-rata renounceable entitlement offer to raise $184.9 million and a $215.1 million placement
- PointsBet also released its quarterly report, revealing its Australian and US active clients have increased 117 per cent and 661 per cent, respectively
- Throughout the quarter, PointsBet burnt through nearly $43 million and invested $37.52 million
- The company ended the quarter with $276.17 million in total available funding, representing 6.43 quarters of use
- PointsBet has entered a trading halt with shares last trading at $11.29 on June 28
Bookmaker PointsBet (PBH) is set to undertake a $400 million capital raising to strengthen its balance sheet.
The raise will consist of a one for nine pro-rata renounceable entitlement offer to raise $184.9 million and a $215.1 million placement.
Entitlement offer
Under the entitlement offer, eligible shareholders will be able to subscribe for one new share for every nine held at August 4.
Shares will be priced at $8 which represents a 26.5 per cent discount to the ex-entitlement price of $10.88.
Placement
Shares under the placement will be issued at $10 which represents a 11.4 per cent discount to PointsBet’s closing price of $11.29 on July 28.
Co-Founders Andrew and Nicholas Fahey, as well as Sam Swanell, have agreed to sell a total of 2.9 million shares, representing 15 per cent of their interests.
Additionally, Chairman Brett Paton has agreed to purchase 1.45 million shares at a price of $10 per share.
PointsBet will use the money to support its North American marketing and client acquisitions, technology and product development, and strengthen its balance sheet.
Quarterly
In a busy morning, PointsBet has released its quarterly report for the June quarter.
For the 12 months to June 30, 2021, the company’s Australian business had 196,585 cash active clients, up 117 per cent from the 12 months to June 30, 2020.
Additionally, its US business had 159,321 cash active clients for the 12 months to June 30, 2021, a 661 per cent increase from the 12 months to June 30, 2020.
The Australian trading business ended the quarter with net win of $43.1 million, up 33 per cent over the prior corresponding period (pcp) while its US business had a net win of $16.2 million, up 1294 per cent over the pcp.
US operations
In mid-April, PointsBet revealed it had completed the acquisition of Banach Technologies for US$43 million (at the time A$55 million).
The company said the acquisition would allow it to make use of Banach’s risk management algorithms and deep-trading experience.
PointsBet then secured market access in Maryland following an agreement with The Riverboat on-the-Potomac.
Finances
Throughout the quarter, PointsBet spent nearly $43 million with the majority going towards advertising and marketing.
The company also invested just over $37.52 million towards its business and intellectual property.
PointsBet ended the quarter with $276.17 million in total available funding, representing 6.43 quarters of use if spending levels remain the same.
PointsBet has entered a trading halt with shares last trading at $11.29 on June 28.