AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- BetMakers answers to ASX query regarding payment of AU$15 million to Matthew Tripp.
- Shares of BetMakers reacted negatively to the news, up 2.586%.
On 13 December 2022, Australian wagering company BetMakers Technology Group Ltd. (ASX:BET) answered a query letter raised by the ASX.
Australian Securities Exchange (ASX) questioned whether BET viewed Mr Matthew Tripp's additional cash payment of AU$15 million as substantial to the business. In response to the ASX query, BetMakers did not consider Mr Tripp payment to be material to the company.
Following the news, shares of BetMakers were spotted heading north with a gain of 2.586%. One share of BetMakers was valued at AU$0.297 as of 10:55 AM AEDT, 14 December 2022.
With today’s increase, BET’s shares have gained 8% in value over the last five trading sessions and 14.23% in a month. However, the share price of BetMakers has dropped significantly by 64.22% on a year-to-date (YTD) basis, 10% in the previous six months, and 67.36% over a year around the same time.
Which statements drove ASX to release query letter against BetMakers?
- An ASX filing on 25 March 2021 stated that BET requested approval from its shareholders for issuing up to 35,000,000 Class A performance rights, 32,000,000 Class B performance rights, and 32,000,000 performance options to Tripp Investments Pty Ltd, also called the performance securities. In this notice of general meeting filing, BET confirmed that “neither Tripp nor Mr Tripp will receive any additional cash consideration for the services.”
- On 21 April, Bet announced that Tripp has consented to increase the escrow agreement on the Class A performance rights and any shares issued on conversion to 100% in exchange for a payment of AU$15 million.
- As per ASX information, BET's CEO Todd Buckingham may have stated during the company's annual general meeting (AGM) on 22 November 2022 that the decision to give Mr Tripp an additional AU$15 million in consideration was made "because it was more than a strategic deal and Matt has helped me personally."
A glance at BetMakers’ answers
BetMakers considers that payment to Mr Tripp was not material to the company, below are the key reasons to support the statement:
- BET's annualised costs were AU$173.7 million for FY22, with the Tripp Payment accounting for 8.63% of those costs.
- For FY22, the company's statutory expenses totalled $162,586,000, or $187,970,000, including the cost of goods sold.
- Accordingly, the Tripp payment constituted 7.98% of its cost of goods sold and 9.23% of its pro forma statutory expenses.
- BET treated Tripp payment as an expense to the company that needs to be viewed in the context of the 10-year contract with NTD Pty Ltd.
- Since the Tripp payment's benefits are spread out over the contract's 10-year term, it is speculated to result in a cost effect of AU$1.5 million per year.
- The company could generate more than AU$300 million in revenue throughout the 10-year contract with NTD in connection with the development of its new wagering venture.
