BetMakers to conduct 10% company share buy-back
Provider’s share price soars on announcement as CEO confirms need to “maximise shareholder value”
BetMakers Technology is set to conduct an on-market share buy-back of up to 10% of the company’s existing shares.
The buy-back is set to commence on 12 July and will be funded from the company’s existing cash reserves.
The ASX-listed firm will conduct the buy-back within the “10/12” limit, which states that a company cannot buy back more than 10% of its issued shares within the last 12 months.
Speaking about the benefits that the buy-back will bring, CEO Todd Buckingham said: “We continue to take a disciplined approach to capital allocation, discerning between opportunities to invest for future growth and we are constantly looking at methods of returning value to shareholders both organically and inorganically.”
Buckingham noted the company was in a strong position moving forwards, with a series of new deals set to drive “strong organic growth in FY23”.
Buckingham added: “BetMakers is in a strong financial position with our improving cashflow and with current market dynamics providing us with an opportunity to maximise shareholder value via a buy-back.”
BetMakers’ share price leaped 23% on Friday 24 June following the announcement from A$0.30 to A$0.38, before closing out at A$0.36.
The share price has remained stable at the start of the week, rising 5.6% at the time of writing to A$0.38.
The supplier has seen its share price slammed over the last 12 months, with a A$1.38 high in early September bottoming out to a yearly-low of A$0.30.
The Global Tote and DynamicOdds provider has been earmarked to serve as the primary supplier for much the anticipated Australia-facing News Corp betting venture.
In February, BetMakers posted a net loss of A$27.8m for H1 despite significant revenue growth.