Tekkorp Capital leads $2m private placement in FansUnite
FansUnite has announced a non-brokered private placement of units of the company led by Las Vegas-based strategic investor Tekkorp Capital.
FansUnite is a combined B2B and B2C business in the regulated gambling sector.The company operates betting brands including McBookie, in addition to providing its iGaming platform to B2B partners. FansUnite subsidiary AmAff also operates affiliate brands including Betting Hero and Props.com.
The private placement will see FansUnite offer units at a price of $0.08, for aggregate gross proceeds of $2m.
Each unit will consist of one common share in the capital of the company and one common share purchase warrant, with each warrant entitling the holder to purchase one common share at a price of $0.12 for three years after closing.
FansUnite said proceeds from the offering will be used for general corporate working capital purposes.
Tekkorp Capital has agreed to acquire 13.75 million units of the financing, worth $1.1m at a price of $0.08 per unit.“We are active investors in the sports and gaming industry and look for great businesses with strong leadership in market segments we like,” said Matt Davey, founder & chairman of Tekkorp Capital.
“The 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.”
FansUnite CEO Scott Burton added: “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 closing of the offering may occur in one or more tranches, the first of which is expected to close this week on 9 March.
In a recent interview with iGaming NEXT, Tekkorp Capital founder Davey shared some insight into how the business approaches investment opportunities within the sector.