BetMakers is profitable and announces funding solution for key acquisitions

Quarterly Update
Quarterly Update
Sydney, April 30, 2019 AEST (ABN Newswire) - The Board of The BetMakers Holdings Limited (ASX:TBH) (OTCMKTS:TPBTF) ("BetMakers" or the "Company") is pleased to provide an overview on the Company's activities for the period ending 31 March 2019.

Highlights

- BetMakers transitioned to profitability(see Note below) in Q3

- $1.68million strategic Investment by international wagering and gaming industry investment firm

- The Company has secured a $4million funding solution in respect of the acquisitions of DynamicOdds Pty Ltd, C.D.K Software Limited and Global Betting Services Pty Ltd

- $3million Entitlement Offer to be conducted

Quarterly 4C key points and Update

The Company is pleased to announce it has reached profitability(see Note below) during the March quarter and was positive with regards to operational cash flow for the March quarter.

The Company also notes it has made further cost reductions through synergies across the group including staff, administration and product manufacturing as well as corporate costs and overheads.

The Appendix 4C is attached (see link below).

Funding

The Company announced today that it has secured a firm commitment for a strategic investment from Las Vegas-based international wagering and gaming industry investment firm, Tekkorp Capital LLC ("Tekkorp Capital").

Tekkorp Capital has provided a firm commitment to invest approximately $1.68m in the Company at $0.03 per fully paid ordinary shares, totaling 55,991,335 shares ("Placement Shares"), which represents 19.99% of the Company's total share capital ("Placement"). President and CEO of Tekkorp Capital, Mr Matt Davey, is an international wagering and gaming industry leader with over 20 years industry experience who recently sold NYX Gaming to Scientific Games for more than AUD$800million. The Placement is expected to be completed within 5 business days, which will be prior to the record date for the Entitlement Offer (discussed below). The Placement Shares will be issued without disclosure under the Company's placement capacity under ASX Listing Rules 7.1 and 7.1A.

$3million non-renounceable pro-rata Entitlement Offer

The Company is pleased to announce that it intends to conduct a non-renounceable pro-rata entitlement offer. Eligible shareholders will be entitled to one (1) new fully paid ordinary share ("New Shares") for every 2.8 existing shares held in the Company at the record date, at the offer price of 3 cents ($0.03) per New Share to raise approximately $3million (before costs of the offer) ("Entitlement Offer").

The Company expects to lodge a transaction-specific prospectus pursuant to which eligible shareholders will be invited to participate in the Entitlement Offer within 14 days. Accordingly, further details of the Entitlement Offer will be announced by the Company in due course.

The funds raised from the Entitlement Offer and the Placement will be used to pay outstanding amounts due to GBS, DO and CDK, repayment of debts and ongoing working capital.

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 $8.4million in respect of the acquisitions of DO, CDK and GBS by 30 June 2019 as follows:

- an outstanding total of $3.9million in respect of the acquisition of GBS ("GBS Deferred Payment"); and

- an outstanding total of $4.5million 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:

- $2million of the GBS Deferred Payment will be deferred until 30 June 2024;

- $2million 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 $1million of the CDK Deferred Payment (representing a deemed share price of $0.03 per share);

- $1.9million will remain payable by 30 June 2019 by the Company in respect of the acquisition of GBS (which the Company expects to fund via the Placement and Entitlement offer); and

- $1.5million will remain payable by 30 June 2019 by the Company in respect of the acquisition of CDK and DO (which the Company expects to fund via the Placement and Entitlement offer).

Note: Based on unaudited figures.

To view Appendix 4C, please visit:
http://abnnewswire.net/lnk/N7T24RKB


About Betmakers Technology Group Ltd

Betmakers Technology Group LtdBetmakers 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.

    


Contact

Charly Duffy
Company Secretary
E: companysecretary@thebetmakers.com
M: + 61-409-083-780

Jane Morgan
Investor & Media Relations
E: investors@thebetmakers.com
M: +61-405-555-618



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