- $1.68 million strategic Investment by international wagering and gaming industry investment firm
- The Company has secured a $4 million funding solution in respect of the acquisitions of DynamicOdds Pty Ltd, C.D.K Software Limited and Global Betting Services Pty Ltd
Tekkorp Capital, controlled by President and CEO, Matt Davey, has provided a firm commitment to take a 19.99% stake in TBH under a placement of 55,991,335 fully paid ordinary shares in the Company ("Placement Shares") at a price per share of $0.03 to raise approximately $1.68m ("Placement"). In conjunction with the investment, the Company has agreed to appoint a nominee of Tekkorp Capital as director of the Company.
BetMakers CEO, Todd Buckingham, commented: "Tekkorp Capital is our ideal strategic investor as they understand exactly what we are doing and the size of the global opportunity with the track record to assist BetMakers in executing the global growth strategy."
Mr Davey was recently CEO of NYX Gaming Group, which was sold to Scientific Games in January 2018, for more than $800m. As CEO of the NYX Gaming Group he developed the corporate strategy that generated significant revenue growth, led to a successful IPO, acquired seven companies, including OpenBet, which powers the largest share of the world's online bets, and became one of the leading suppliers of digital gaming content and technology.
BetMakers Chairman, Nick Chan, commented: "The Board was pleased to accept an investment from Tekkorp Capital at an important phase of the Company's development."
"The Company has been looking for the right partner to help it roll out its range of technologies and products into the global market and Tekkorp Capital certainly fits all of our criteria. The Board and management team at BetMakers look forward to working with Matt on executing at the next level," Mr Chan said.
Mr Davey commented: "We have observed the BetMakers team and their unique products for some time and believe their strategy to offer high quality B2B technology products and services for wagering operators and racing bodies is attractive, especially with the expansion of international markets such as the US and the growing need for integrity-led systems. We look forward to supporting the next phase of development of the BetMakers".
The placement is expected to be completed within 5 business days. The Placement Shares will be issued without disclosure under the Company's placement capacity under ASX Listing Rules 7.1 and 7.1A.
The funds raised from the Placement will be used to pay amounts due to be paid by 30 June 2019 in respect of the acquisitions of Global Betting Services Pty Ltd and CDK Software Ltd (which is associated with DynamicOdds Pty Ltd) as announced by the Company on 29 August 2018 and 30 January 2019.
Update to acquisitions of DynamicOdds Pty Ltd ("DO"), C.D.K Software Limited ("CDK") and Global Betting Services Pty Ltd ("GBS")
As announced by the Company on 29 August 2018 and 30 January 2019, the Company is required to pay an outstanding total of $8.4 million in respect of the acquisitions of DO, CDK and GBS by 30 June 2019 as follows:
- an outstanding total of $3.9 million in respect of the acquisition of GBS ("GBS Deferred Payment"); and
- an outstanding total of $4.5 million in respect of the acquisition of CDK ("CDK Deferred Payment"), (together, the "Outstanding Payments").
The Company advises that it has renegotiated the terms of the Outstanding Payments as follows:
- $2 million of the GBS Deferred Payment will be deferred until 30 June 2024;
- $2 million of the CDK Deferred Payment will be deferred until 30 June 2024;
- the Company will pay interest on each of the above amounts at a rate of 10% per annum to be paid monthly;
- subject to the Company obtaining shareholder approval, 33,333,333 fully paid ordinary shares in the Company will be issued to the vendor of CDK in lieu of $1 million of the CDK Deferred Payment (representing a deemed share price of $0.03 per share);
- $1.9 million will remain payable by 30 June 2019 by the Company in respect of the acquisition of GBS; and
- $1.5 million will remain payable by 30 June 2019 by the Company in respect of the acquisition of CDK and DO.
* Unless specified otherwise, all amounts are in AUD and are provided on an unaudited basis.
About Betmakers Technology Group Ltd
Betmakers Technology Group Ltd (ASX:BET)(FRA:T07) is an ASX-listed holding company and a global provider of online wagering products and services to both wholesale and retail markets through its various wholly owned subsidiaries. The Company operates a retail wagering business, offering consumers wagering, fantasy tournament and content products and services.
M: + 61-409-083-780
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