Operator Rivalry has announced a non-brokered private placement offering of convertible debentures and the closing of the first part of the investment for aggregate gross proceedings of CA$14m (US$10.2m), with the investment coming from an existing institutional shareholder.
Each convertible debenture will consist of $1,000 principal amount of 10% senior secured convertible debentures of the company, maturing on 14 November 2027.
The net proceeds received by Rivalry are expected to be used to fund general working capital and corporate purposes.
Co-Founder and CEO of Rivalry, Steven Salz, commented on the investment into the company: “We are very pleased to receive the support of a long-standing institutional shareholder of Rivalry with this investment.
“Rivalry’s unique product mix and position in the marketplace has brought the business to the inflection point it’s reached today. We're deeply confident in the underlying trends the business is showing and maintain our expectation to achieve profitability in H1 2024.
“Strengthening our balance sheet positions the company to maximise the opportunity in front of us. The capital will enable Rivalry to accelerate the development and release of new products, expand marketing efforts, and extend into new geographies and verticals, setting us on a path where we can pursue growth and profitability at the same time.”
Just yesterday, Rivalry announced the launch of a free-to-play basketball fantasy game with Low6, where users will be able to combine desk-building with daily fantasy sports through the new free NBA-themed app.
