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Highlights
PointsBet is set to issue 38.75 million shares to proprietary financial trading firm SIG Sports.
PointsBet also announced a pro rata deferred bonus equity option issuance to eligible shareholders.
There is no change to PointsBet’s board as a result of the equity placement.
Sports betting company PointsBet Holdings Ltd (ASX:PBH) on Monday announced securing a AU$94.16 million investment from SIG Sports Investment Corp, a member of the Susquehanna International Group of Companies.
Triggered by the update, shares of PointsBet jumped 13.02% to trade at AU$2.43, as of 10:07 AM (AEST). The stock has fallen over 66% on a year-to-date (YTD) basis. The share price is down over 83% in the past one year.
According to the agreement, the ASX-listed sports betting company would issue 38.75 million shares to proprietary financial trading firm SIG Sports at a price of AU$2.43 a share. It implies a 15% premium compared to the five-day volume weighted average price to 17 June 2022. Shares of PointsBet closed at AU$2.15, up 5.39% on last Friday.
“Upon issuance, this investment will represent 12.8 per cent of PointsBet’s issued capital and make SIG Sports the company’s largest shareholder. There is no change to PointsBet’s board as a result of the equity placement,” PointsBet said in its latest ASX filing.
PointsBet also announced a pro rata deferred bonus equity option issuance to eligible shareholders. It would help the company to raise up to AU$150 million during the next two years.
What did the companies say?
Both companies were upbeat about the new investment, which they think had immense potential for future growth.
Commenting on the development, PointsBet Chairman Brett Paton said, “We are delighted to pair up with a visionary investor which has committed ongoing support and is eminently qualified in analytical trading in financial markets, and now in sports. This investment will assist with expanding and growing our North American operations as we seek to lead in in-play betting and enhancing the overall customer experience.”
SIG Co-founder and Managing Director Jeff Yass said: “After several years of thoroughly evaluating the North American sports betting market for the right partner, SIG Sports is pleased to have made what we consider to be a long-term investment in PointsBet. We believe PointsBet has great potential for future growth and success in the North American sports betting market and SIG has both the analytics and capital to help realize that potential.”
Meanwhile, PointsBet’s global leadership team recently underwent a major shakeup and came up with three new changes to its board.
Manjit Gombra Singh took up the role of non-executive director, while Jerry Bowskill took over the reins of Group Chief Technology Officer. Additionally, Andrew Catterall will step into the role as Australian CEO from 4 July 2022.
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