In accordance with the terms of a subscription agreement, the operator will issue 38,750,000 shares to SIG Sports at a price of AU$2.43 per share, representing a 15% premium compared to the 5-day volume weighted average price to 17 June 2022.
The new shares, which will be issued under PointsBet’s existing placement capacity, are expected to be quoted on or around 23 June 2022. Upon issuance, the investment will represent 12.8% of the operator’s issue capital, with SIG Sports becoming its largest shareholder.
“After several years of thoroughly evaluating the North American sports betting market for the right partner, SIG Sports is pleased to have made what we consider to be a long-term investment in PointsBet,” said SIG Co-founder and Managing Director Jeff Yass.
“We have been following their journey for some time and have developed a very positive view of the overall business operations and the capability of the PointsBet leadership team. We believe PointsBet has great potential for future growth and success in the North American sports betting market and SIG has both the analytics and capital to help realise that potential.”
There will be no change to the operator’s board as a result of the equity placement, while notifications will be provided to PointsBet’s gaming regulators as required.
PointsBet Chairman Brett Paton commented: “We are delighted to pair up with a visionary investor which has committed ongoing support and is eminently qualified in analytical trading in financial markets, and now in sports.
“The cultural alignment between both organisations is strong, and this investment will assist with expanding and growing our North American operations as we seek to lead in in-play betting and enhancing the overall customer experience.”
PointsBet added that its wholly owned subsidiary PointsBet Europe Holdings Limited, formerly Banach Technology Limited, has entered into an exploratory agreement with Nellie Analytics, a member of SIG, in which Nellie Analytics will provide agreed exclusive sports analytical services to the group at nil cost for a period of nine months.