A Canadian sports betting and iGaming company closed a non-brokered private placement deal as it blazes a new business path.
Rivalry Corp. announced that it raised $1.94 million by issuing 12,930,707 units at a price of $0.15 per unit.
“This initial tranche of our non-brokered private placement was primarily subscribed to by insiders, family and friends, and long-term shareholders,” said Steven Salz, co-Founder and CEO of Rivalry. “This commitment and demonstration of support is deeply gratifying as we press ahead into a new chapter for the company.”
Rivalry co-founder and company director Steven Isenberg acquired 1,333,300 of the available units. The company also announced that more offering closures could bring the raised proceeds to roughly $3 million.
Proceed plans
Rivalry plans to put the new proceeds toward corporate development and general capital purposes.
Rivalry said each warrant share has a price of $0.25 for 12 months and subject to the company’s right to accelerate the expiry date of the warrants upon a 30-day notice in the event of a closing price equal to or exceeding $0.50 on the TSX Venture Exchange for a 10-day trading period.
“The purchasers of the units and the extent of such participation were not finalized until shortly prior to the completion of the offering,” Rivalry stated. “Accordingly, it was not possible to publicly disclose details of the nature and extent of related party participation in the transactions contemplated hereby pursuant to a material change report filed at least 21 days prior to the completion of such transactions.”
Company changes
Rivalry has made two downsizing efforts this year, laying off 30 employees in July and another 28 in October.
In Q2 2024, Rivalry’s net revenue grew 22% year-over-year as the operator focused on margin growth, managing work capital, and cutting spending costs. Gross gaming revenue slipped 12% from a betting handle that was down 22% in Q2.
Rivalry will release its next quarterly earnings on Friday.
Founded in 2017, the Toronto-based gaming operator has emphasized esports wagering and crypto tokenization in the betting-legal province of Ontario since 2023. Rivalry became the first operator in the industry to offer same-game parlays on esports last year.
Rivalry is licensed in more than 20 countries and plans to continue expansion, something the newly raised proceeds could go toward.
