- Betting platform PointsBet (PBH) has announced a capital raising of approximately $303 million to strengthen the company’s balance sheet
- The capital raising will consist of an entitlement offer for $153.2 million and an institutional placement for approximately $150 million
- The placement began on September 2 and will end on September 4, while the entitlement will start on September 7
- The proceeds will be used for marketing costs, technology and platform development, business development, and capital raising costs
- PointsBet closed 3.71 per cent in the green for $13.69 per share
Betting platform PointsBet (PBH) has announced a capital raising of approximately $303 million to strengthen the company’s balance sheet.
The capital raising will consist of an entitlement offer for $153.2 million and an institutional placement for approximately $150 million.
The entitlement offer will be a fully underwritten, 1-for-6.5 accelerated pro rate renounceable offer. Retail rights will trade for $6.50 per share, with eligible shareholders receiving one new option for every two shares issued under the offer.
The options are exercisable at $13.00 each, and will expire on September 30, 2022. The entitlement offer will commence on September 7, 2020.
The other portion of the capital raising, the institutional placement, opened after market on September 2, 2020. It will close on September 4, 2020, at which time the placement price and total proceeds will be announced.
Overall proceeds from the capital raising will be used to fund and support a variety of initiatives within the company. These include US marketing costs in target states, technology and platform development, US business development, and costs of the capital raising.
PointsBet’s Managing Director and Group CEO, Sam Swanell, said the capital raising will position the company for the future. He spoke in particular of PointsBet’s future as an Official Sports Betting Partner of NBC Sports in the US.
As part of the five-year marketing agreement, PointsBet has committed marketing spend of US$393.1 million (approximately A$537.8 million) allocated in progressively increasing amounts over the five-year media partnership, together with incentives payable to NBCUniversal for customer referrals.
“There is strong alignment of our strategies, with NBCUniversal to be issued a 4.9 per cent shareholding in the company and 66.88 million options, maturing in five years and exercisable at $13.00 per option,” he said.
“The combined value of the shares and options will offset and reduce the total cash payments by PointsBet under the five-year media partnership,” he added.
PointsBet closed 3.71 per cent in the green for $13.69 per share.