DraftKings shareholders offload stock and raise $620.8m
Boston-headquartered operator issues up to 33 million shares to fund “general corporate purposes”
DraftKings has raised $620.8m by issuing up to 16 million Class A common stock and redistributing 30 million shares held by current shareholders.
The operator said the funds would be put towards “general corporate purposes” as its valuation rose to $1.84bn
Among those selling off their shares are DraftKings CEO Jason Robins and chief compliance officer Tim Dent, as well as SBTech chairman Gavin Isaacs.
New York Knicks owner Madison Square Garden Investments and NHL Enterprises are also among those offloading stock.
$DKNG Woah, pretty much every insider & shareholder selling…: pic.twitter.com/OjegZra44I
— Alex Haak (@Badpak) June 17, 2020
Documents filed with the SEC yesterday revealed DraftKings expects revenue in Q2 to reach $70-$75m, despite ongoing costs relating to its takeover of SBTech, which was completed in April.
Current investors have seen DraftKings shares jump from $17 at launch to a high of over $44 in June, with market analysts urging investors to buy into the betting industry now.
As of June 12, the firm had issued 13,349,484 shares.
The operator originally planned on raising upwards of $30m via 14 million new shares and 19 million shares from selling stockholders.
Flutter raised $1bn through additional shares in May as it sought to increase its investment in the US.
William Hill has also made up to $281m in a new ordinary share rights issue to also boost its position in the US.