Quarterly Activities Report
Sydney, April 27, 2021 AEST (ABN Newswire) - The Board of BetMakers Technology Group Ltd (
ASX:BET) (T07:FRA) is pleased to release its Quarterly Cash Flow Statement and Quarterly Activities Report for Q3 FY21, the quarter ending 31 March 2021.
QUARTERLY HIGHLIGHTS
- $5.2 million in receipts from customers for the quarter (+31% vs Q2 FY21, +206% vs Q3 FY20)
- Matt Tripp agrees to strategic partnership and subscription for $25m placement
- Completion of $10 million Share Purchase Plan
- Completion of $50 million institutional placement
- $125 million of cash as at 31 March 2021
- Nearing completion of acquisition of the Sportech Racing and Digital Assets
The Board is pleased to report a strong quarter of growth. The Company reported $5.2 million in receipts from customers, which is an increase of 31% on Q2 FY21 cash receipts, and an increase of 206% on Q3 FY20 cash receipts.
As highlighted previously by the Board, the Company is focused on executing on a number of global strategic initiatives and had a historical quarter in enhancing its position for success. This was underpinned by entering into a strategic partnership with online wagering industry leader Matt Tripp, and securing an additional $85 million in funding from existing and new investors. The Company reported in excess of $125 million of cash as at 31 March 2021.
BetMakers CEO Todd Buckingham said:
"We have delivered another strong performance for the quarter, demonstrating significant growth in our underlying business as the Company accelerates its strategy to capitalise on international opportunities, particularly in the US. The increase in cash receipts and revenues for the quarter was able to offset the investment into the US market along with extra costs for our acquisition."
"The Company is well placed with $125m cash at bank and is on track to complete the acquisition of Sportech's Racing and Digital Assets in Q4 FY21. With our strategic partnerships, including with Matt Tripp, and our first-class team and technology assets, we believe the Company is extremely well positioned for substantial growth."
STRATEGIC PARTNERSHIP WITH MATT TRIPP
On 17 February 2021, the Company announced that it had entered into an agreement with online wagering industry leader Matt Tripp to partner exclusively with BetMakers to accelerate growth of its B2B wagering strategy.
BetMakers is engaged with a number of parties in relation to opportunities which leverage BetMakers' scalable technology and data platform. The Company believes Mr Tripp can provide assistance with these initiatives.
Tripp Investments Pty Ltd as trustee for the Tripp Investment Trust ("Tripp"), an entity controlled by Mr Tripp, also subscribed for $25 million of new BetMakers shares as part of a strategic placement. This placement was approved by shareholders at an extraordinary general meeting held on 26 April 2021, with the shares to be issued to Tripp, and $25 million in subscription funds to be paid to the Company, in the coming days.
COMPLETION OF $50 MILLION STRATEGIC PLACEMENT
In addition to the strategic placement to Tripp, the Company also undertook a $50 million institutional placement in February 2021. This was corner-stoned by several existing, supportive institutions. All funds raised are intended to be used to accelerate growth, specifically in pursuing and executing strategic opportunities.
COMPLETION OF $10 MILLION SHARE PURCHASE PLAN
As part of the Sportech Racing and Digital assets acquisition, BetMakers completed a $10 million Share Purchase Plan ("SPP"). As announced on 20 January 2021, the SPP was oversubscribed with the Company receiving applications from eligible shareholders totaling approximately $26.3 million.
ACQUISITION OF SPORTECH PLC RACING AND DIGITAL ASSETS PROGRESS
The Company entered into binding agreements to acquire Sportech's Racing and Digital assets in the United States, United Kingdom and Europe, for consideration of GBP30.9million (the "Acquisition") and received Sportech shareholder approval in December 2020 (which satisfied the last condition precedent for Sportech's benefit, required for completion of the Acquisition).
BetMakers is working with Sportech and the relevant industry regulators with the intention to ensure continued compliance during completion of the Acquisition and to finalise the necessary regulatory approvals and authorisations in relation to the licences held by the Sportech assets, being the last condition precedent to completion of the Acquisition. This process is proceeding well, with completion expected in Q4 FY21.
NEW JERSEY FIXED ODDS PROGRESS
We expect the legislative process to conduct Fixed Odds betting on horse racing to progress during Q4 FY21 to the next stage of the process.
As previously announced to the market, the next step in the legislative process is for public hearings before the Senate State Government, Wagering, Tourism & Historic Preservation Committee.
The Bill is required to be approved by a majority of both the Senate and the General Assembly before it can be sent to the New Jersey Governor for his consideration and, if approved, receive his signature to become law.
BetMakers CEO Todd Buckingham said:
"The New Jersey legislative process has made progress and has created the pathway for Fixed Odds to come to reality in the United States. To bring Fixed Odds into the United States has been a key goal for BetMakers, and the agreements we have in New Jersey along with the progress of the legislative process in the State puts us in a strong position to pioneer this betting option, which has worked so successfully in the Australian market. With the Acquisition of Sportech's tote and digital assets, which perfectly complement BetMakers', we believe we are now well placed to capitalise on the US market and we continue to invest in this strategy to ensure this becomes a reality."
OTHER COSTS INCLUDED IN QUARTER
During the quarter, BetMakers spent approximately $1.0 million in developing its US strategy across content, advisors and general operations along with costs associated with its acquisition.
The Company paid Directors $140,000 for services during Q3 FY21. This included payment to the Chief Executive Officer for employment services as CEO. During the quarter, BetMakers spent approximately $2.3 million in associated fundraising fees (as noted in items 2.1(b) and 3.4 of the attached Appendix 4C, respectively).
To view the quarterly report, please visit:
https://abnnewswire.net/lnk/82QY3S3D
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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