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PointsBet Raises $ 294 Million to Fund US Expansion

pointsbet raises $ 294 million to fund US expansion

Posted: July 29, 2021, 10:39 NS.

Last updated: July 29, 2021, 02:49 NS.

Todd Shriber

PointsBet (OTC: PBTHF) said today it is procuring $294. Capital 1 million to fund 17 expansions The fast-growing US market.

PointsBet capital raise
The A PointsBet sportsbook is the photo above. An Australian company is raising money to fund the expansion of the United States. (Image: PointsBet blog)

The Australian sportsbook operator is issuing new shares and rights issues. Goldman Sachs and MST Financial manage the transaction. Similar to this type of financing course, stock sales are priced below market prices.

For example, the private placement price is A 1TP 2Tis. , More than 11 PointsBet Wednesday closing price percent discount. Qualified sleeves that raise $ 136 million are sold under A $ 8. Private placements are aimed at institutional investors, while rights transactions are aimed at small individual shareholders of the business.

Stock sales are usually sparse for today's investors. However, PointsBet seeks to provide the degree of protection that devoted long-term investors have. The company went public in Sydney in 2019, and since then its shares have more than quintupled, mainly thanks to operators. Ability to establish a US footprint.

PointsBet Bold US Ambitions

From the Separate Share Sale, PointsBet today reported the results of Accounting 2021. And it's easy to see why operators are so enthusiastic about expanding their business in the United States. In fiscal year 30, which ends in June, revenues almost surged to 154 percent. But the US numbers for operators were even more pronounced.

In the world's fastest growing sports betting market, PointsBet's total number of handles increased from 458.4% to $ 1.791 billion, with gross and net wins increasing 481% each. PointsBet CEO Sam Swanell saw a huge opportunity in the United States and presented a North American forecast that combines iGaming and sports betting. This far exceeds some of the more bullish estimates.

The North American sports betting and iGaming market is a billion revenue opportunity with $54), and our strategy is to continue investing to become the top 5 player in this market. "Said Swanel.

Financing will allow PointsBet to carry out its strategy, and Swanell said the company has at least 10 percent of the North American market share in which it operates.

Aiming for big growth

Currently, Australian companies have licenses to run online sportsbooks in six states: Colorado, Illinois, Indiana, Iowa, Michigan and New Jersey — and internet casinos in two states. New Jersey, the country's top iGaming market, is one of the two. In the most recently completed fiscal year, New Jersey, Illinois and Iowa were the company's largest US markets ranked by revenue.

By the end of), PointsBet has at least 19 North American states and provinces. The company plans to become a player in Canada as well and recently approved single-game sports betting.