Rivalry generates C$335,000 through third tranche of non-brokered private placement
Canadian operator outlines its plans to commit funds to strengthen company’s corporate development efforts
Rivalry has closed the third tranche of its non-brokered private placement of units of the company, resulting in gross proceeds of C$334,688 (US $236,920) for the Toronto-listed operator.
The third tranche saw 2,231,253 units issued at a price of C$0.15 per unit, to augment two previous tranches that started on November 26.
Rivalry outlined it could still complete one or more closings in an attempt to raise aggregate gross proceeds of approximately C$3m.
Under the terms of the placement, each unit consists of subordinate voting share in the capital of the company, as well as a one-half of one subordinate voting share purchase warrant.
Members of Rivalry director Steven Isenberg’s family were issued 100,200 units, while 500,000 units were issued to fellow director Kevin Wimer.
In connection with this most recent closing, Rivalry paid an aggregate of $10,501.20 in finder’s fees.
The capital will be used for “for corporate development and general working capital purposes.”
On November 26, the Canadian operator announced the first tranche, in which it confirmed it had raised roughly C$1.94m, via the issuance of 12,930,707 units at C$0.15 per unit.
At the time, CEO and co-founder Steven Salz explained: “This initial tranche of our non-brokered private placement was primarily subscribed to by insiders, family and friends, and long-term shareholders.”
A second tranche was completed and confirmed following Rivalry’s Q3 earnings report release in which it raised another C$1m.
As per the Q3 report, Rivalry said it had completed the “most substantial product overhaul” in the company’s history, which included a complete revamp of the Rivalry sportsbook.
On the financial front, the operator posted a slight slump in net revenue, which was recorded at C$3m, a marginal decline from the C$3.9m generated in the corresponding period last year.
Betting handle also fell by C$7.9m, down from the previous quarter’s total of C$87.8m to its most recent total of C$79.9m.
Analyzing the handle total by individual vertical, the company’s casino segment contributed 62% of the overall figure, alongside 40% of Rivalry’s revenue in Q3, representing a 14% and 2% year-over-year (YOY) increase, respectively.
Meanwhile, net revenue per user reached an all-time high, increasing 51% when compared to the previous quarter and marketing spend fell by 30% YOY to C$2m.
Issuing an update on the company’s H2 financial guidance, Salz added: “Our efforts in the third quarter have set the foundation for renewed growth, and while we expect near-term profitability, we are temporarily stepping back from providing specific guidance during this transitional period.”
At the time of writing, Rivalry’s share price sat at C$0.14.