FansUnite gains $2m after firm ‘ticks all the boxes’ for Tekkorp

FansUnite gains $2m after firm ‘ticks all the boxes’ for Tekkorp

Tekkorp Capital has made its latest strategic investment, leading a non-brokered private placement of units in B2C and B2B sports betting firm FansUnite.

Conducted at a price of $0.08 per FansUnite unit, the offering totals aggregate gross proceeds of $2m and sees Tekkorp acquire 13,750,000 financing units in FansUnite, corresponding to shares in the firm.

The offering forms part of the global gaming investment and advisory firms remit to ‘invest in innovative public and private companies’ in the betting and gaming space.

Scott Burton, FansUnite CEO, said: “This private placement offers us an opportunity to work with a strategic investor group consisting of top executives who have helped build and grow some of the largest gaming companies globally.

“They have expressed a strong interest to support our strategy in achieving our profitability and growth targets. To date, we have made great strides in maximising cost efficiencies while executing initiatives to improve our top and bottom line.”

The investment comes after a successful trading period in 2022 for FansUnite, a Toronto-listed sports entertainment and betting group with both B2B and B2C holdings.

Its B2C arm comes in the form of McBookie, which focuses on the Scottish market and recorded turnover of £45m in 2022, a 22% uptick on corresponding 2021 results of £36.6m.

Commenting at the time of the results, Burton described McBookie as ‘the dominant force’ in Scottish sports betting, adding that FansUnite believes its flagship sportsbook brand is ‘positioned for a record-breaking 2023’.

Moving forward after Tekkorp’s investment in FansUnite, the duo anticipate that the £2m net proceeds from the offering will be used for ‘general corporate working capital purposes’.

Further specific details of the transaction could see the offering occur in one or more tranches, with the first expected ‘on or about’ 9 March 2023, with the date of subsequent tranches dependent on agreement between FansUnite and its shareholders.

The final closing of the offering is also subject to completion of regulatory approvals, including that of the Toronto Stock Exchange (TSX), which will occur within 45 days.

SBC News FansUnite gains $2m after firm ‘ticks all the boxes’ for Tekkorp
Matt Davey

For Tekkorp, the arrangement marks its major business development since undergoing a board transformation earlier this year, which saw founder Matt Davey assume Chairman responsibilities.

“We are active investors in the sports and gaming industry and look for great businesses with strong leadership in market segments we like,” Davey commented on the FansUnite agreement.

“Scott and his team at FansUnite tick all the boxes for us and we are happy to support in their journey to grow the company and shareholder value for all investors.”

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