FansUnite confirms $37.5m sale of Betting Hero as TSX delisting process begins
Affiliate has been purchased by its founders Jai Maw and Jeremy Jakar via Hero Group in partnership with GeoComply while FansUnite shareholders set to pocket C$26m from transaction
FansUnite Entertainment has confirmed the sale of its FansUS subsidiary, which encompasses affiliate Betting Hero, has been completed for an aggregate purchase price of $37.5m.
The buyers comes in the form of the group’s founders Jai Maw and Jeremy Jakar, via their Hero Group vehicle, and strategic partners GeoComply.
The deal’s structure will see $30.6m of the overall figure paid in cash following the closing of the transaction, with the remaining $6.9m to be settled via the cancellation of a demand note issued to Betting Hero co-founders Maw and Jakar.
FansUnite will retain C$500,000 to “explore new business opportunities for the economic benefit of its shareholders.”
News of the sale first broke in late June but has since been officially finalized, with 60% of the affiliate now owned indirectly by Maw and Jakar, while the remaining 40% of shares are held by GeoComply.
As a result of the transaction’s close, it is expected that the Toronto Stock Exchange will delist common shares of FansUnite on August 21 and common shares will cease in the Canadian public markets.
FansUnite has also confirmed the breakdown of the distribution of the net proceeds from the deal to its shareholders.
An aggregate amount of C$26m has been placed in a bucket, with shareholders expected to receive C$0.0725 per each common share held, as per the terms of the stock purchase agreement.
Scott Burton, FansUnite Entertainment CEO, said: “The completion of this sale represents the culmination of a tremendous amount of effort from the entire FansUnite team, and I am proud of what we have accomplished.
“I extend my sincere thanks to our shareholders for their support throughout this journey. I also want to acknowledge the exceptional efforts of our board, advisors, and legal teams, whose dedication was vital in bringing this transaction to a close.
“We wish the Betting Hero and GeoComply teams continued success and look forward to exploring new opportunities that will create value for our shareholders.”
Meanwhile, Maw took to LinkedIn to announce confirmation of the deal, writing: “Today marks a significant milestone, as Jeremy and I have officially reacquired Betting Hero, with the incredible backing and support of GeoComply.”
Betting Hero has been operational for six years and expanded into 20 different US states.
The business is made up of three segments: Betting Hero Activation, Betting Hero Research, and Betting Hero Digital.
In June, the deal was approved unanimously by the FansUnite board and its special committee, which comprised of board members James Keane and Quinton Singleton.
When the agreement of the sale was made public, GeoComply CEO Anna Sainsbury said: “Jai and Jeremy have built a tremendous business with laser-like vision to support their customers’ mission for the best possible user experience through their signup process.
“At GeoComply, we share that vision and are delighted, through this intended investment, to help Betting Hero further their efforts and deploy more resources and focus into serving our customers and their patrons throughout North America.”