Receives Firm Commitments to Raise A$50 Million
Sydney, Dec 2, 2020 AEST (ABN Newswire) - The Board of BetMakers Technology Group Limited (
ASX:BET) (T07:FRA) is pleased to announce that it has received firm commitments to raise A$50 million (before costs) under a placement via the issue of approximately 83.3 million new fully paid ordinary shares ("New Shares") at an offer price of A$0.60 ("Placement Price") to institutional and sophisticated investors ("Placement"). Funds raised from the Placement, in conjunction with existing cash, will be used to fund the acquisition of the Racing and Digital assets of leading international online sports betting company Sportech PLC for A$56.2million ("Acquisition").
Highlights
- BetMakers has received firm commitments to raise A$50 million by way of a Placement to fund strategic acquisition and drive rapid U.S. expansion and fixed odds opportunity.
- The Placement received strong demand from domestic and international institutions, including both existing shareholders and new investors.
- Share Purchase Plan to be launched after approval of the Acquisition, to raise up to a further A$10 million.
The Placement had strong investor demand from domestic and international institutions, including support from both existing shareholders and new investors.
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."
The Placement Price of A$0.60 per New Share represented 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 at Monday, 30 November 2020. The Placement was conducted using BetMakers' existing placement capacity under ASX Listing Rules 7.1 and 7.1A. Approximately 60 million New Shares will be issued under ASX Listing Rule 7.1A and approximately 23.3 million New Shares will be issued under ASX Listing Rule 7.1.
New Shares issued under the Placement will rank pari passu with existing shares on issue.
Completion of the Placement is conditional upon Sportech shareholder approval of the Acquisition, which is expected to occur in or around the week commencing 21 December 2020 ("Meeting"). The Placement will settle prior to completion of the Acquisition.
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. Taylor Collison Limited acted as Co-Manager.
BetMakers will conduct a Share Purchase Plan offer ("SPP") to existing shareholders in the Company with a registered address in Australia and New Zealand as at 7:00pm (Sydney time) on Monday, 30 November 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. The SPP will not open until after the Acquisition has been approved by Sportech shareholders at the Meeting.
Acquisition
The proposed Acquisition of Sportech's Racing and Digital assets in the United States, United Kingdom and Europe is intended to accelerate BetMakers' international growth plans with a significantly expanded global customer base and strategic position to fully capitalise on emerging opportunities in the U.S. market, including Fixed Odds wagering.
BetMakers considers the Acquisition to be transformational for the Company's financial and growth prospects. The Acquisition includes the following key Sportech assets:
- Americas Tote Business: providing betting solutions, hardware and operational services to over 200 racetrack, casino and betting venues to more than 50 customers across the United States, Canada and Latin America.
- Americas Digital Business: providing white-label digital betting solutions to more than 25 customers in North America.
- UK and European Tote Business: providing betting technology, pari-mutuel and co-mingling services to more than 35 customers across the UK, Ireland, Europe and Asia.
- QuantumTM Tote Technology - a world-leading tote betting engine currently used internationally and including for events such as the Breeders Cup and Royal Ascot race meetings.
If the Acquisition is approved at the Meeting, BetMakers will pay Sportech A$11.2m (being GBP6.2m) as a non-refundable initial payment. The balance of the purchase price, A$45.0m (GBP24.7m), will be payable upon completion of the Acquisition, which will occur following satisfaction of certain customary conditions. Further details regarding the terms of the Acquisition are set out the investor presentation lodged with the ASX on Tuesday, 1 December 2020.
About Sportech PLC Racing and Digital Business
- 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 U.S., Europe, Latin America and Asia.
- Servicing 15,000 race meetings a year across 434 customer sites in 38 countries.
- Sportech's Quantum(TM) System is the most widely-deployed pari-mutuel betting software in the world. An extensive range of pools, bet types, and commingling protocols help Sportech expand its pools betting services to new markets.
- Sportech's global service delivery network is anchored by its Global Quantum Data and Operations Centres, delivering 24/7 services in specialized operational environments designed for pari-mutuel betting. From this network, Sportech services its entire North American client base as well as clients from Europe, Latin America, the Caribbean, and Asia.
- Sportech's Quantum(TM) System underpins the Tote's domestic pools betting, international commingling and Tote Superpools
About Betmakers Technology Group Ltd
Betmakers Technology Group Ltd (ASX:BET) (OTCMKTS:TPBTF) 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.
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