Rivalry announces strategic review to maximize shareholder value
Toronto-listed firm, which is yet to publish full-year 2024 earnings, has named XST Capital Group as an adviser for the process
Rivalry has announced a strategic review at the TSX-listed company to allow the operator to be “best positioned for continued growth and innovation.”
The review, which will include a range of undisclosed options, was announced today, April 7.
Rivalry has tapped XST Capital Group as an adviser for the process, with no timeline provided on when a conclusion could be expected.
The business said the review was being put in place to establish “strategic alternatives to maximize long-term stakeholder value”.
The Rivalry board and XST will work together to comb through potential strategies.
Rivalry said: “The review reflects the board’s commitment to prudent corporate governance and its ongoing efforts to optimize the company’s market position.”
Rivalry’s share price is down almost 92% over the past 12 months, having fallen from C$0.99 to C$0.08, at the time of writing.
The business had its IPO in October 2021, with shares trading at close to C$3 a piece near their peak.
The firm is yet to publish its full-year 2024 and/or Q4 2024 earnings. Earlier this year, Rivalry added the $TRUMP meme coin to its payments methods as part of a concerted crypto swing.
Having started life as an esports betting operator, Rivalry has since focused on crypto, including launching its own in-house coin, targeting VIP players, and ramping up its marketing towards Gen Z.
Alongside the review being announced, the company said it had secured a $650,000 principal amount senior unsecured loan from its existing senior lender, which will mature on September 30.
The firm added: “The loan reinforces the company’s senior lender’s support for the process and provides the company with additional flexibility to pursue strategic initiatives.”
Steven Salz, Rivalry CEO, said: “We have built a strong foundation in the online gaming sector, delivering an exceptional experience for our players while driving operational excellence.
“This review is a natural step in assessing how we can best create long-term value for our stakeholders while continuing to enhance our world-class gaming platform.”