PointsBet to raise $84m for US expansion
Company to halt trading on Australian Securities Exchange as it carries out new investment process
PointsBet has voluntarily halted trading on its shares today as the sports betting operator looks to raise $84m to fund its ongoing business development.
The company is issuing 16.66 million new shares for institutional investors, with funds to be used for marketing and acquisition, product development and US business expansion, including the fitting of new retail sportsbooks and new state licensing fees.
PointsBet said it will announce the results of the institutional offer on 1 November and shares would remain in halt until then.
There are also a number of shares available for retail investors.
To support the planned raise, PointsBet issued a trading update today, with revenues for the three months to 30 September (Q1 2020) at $8m on turnover of $161m.
A slide from the PointsBet investor presentation
The company reported a 6.7% market share for Q1 in New Jersey and said it was “well positioned” to take advantage of the growing market.
The firm said it had started “actively targeting” high staking clients in late August 2019, with these customers delivering $13.6m of turnover in New Jersey from July through October 20.
PointsBet currently has access to 10 US states with an estimated market size of $4.6bn.