Rivalry Secures $10.23 Million Investment to Boost Growth
Date: 2023-11-16 Author: Dima Zakharov Categories: SPORTS BETTING, EVENTS
The Investment Deal:
Rivalry has closed a non-brokered private placement offering, garnering CAD 14 million from an undisclosed institutional shareholder. The investment comes in the form of convertible debentures, each with a principal amount of CAD 1,000, maturing on November 14, 2027. These debentures will accrue interest at a rate of 10% per year, payable quarterly in cash.
Additional Funding Potential:
Rivalry disclosed that more tranches of the private placement offering may close, aiming for a total gross sum of up to CAD 27,500,000. The securities tied to this offering will be under a four-month hold period and are not registered under the US Securities Act of 1933.
Utilizing the Funds:
The net proceeds from this investment will serve to strengthen Rivalry's general working capital and support various corporate initiatives. Stephen Salz, Rivalry’s co-founder & CEO, emphasized that this financial backing positions the company for accelerated growth.
CEO’s Vision:
Stephen Salz expressed satisfaction in securing support from a longstanding institutional shareholder, citing the company’s unique product mix and market position as key contributors to reaching a significant "inflection point." He is optimistic about Rivalry’s future profitability, expecting notable progress by the first half of 2024.
Strategic Allocation of Capital:
Salz outlined the intended use of the capital, emphasizing its role in accelerating product development, expanding marketing efforts, and venturing into new markets and verticals. This strategic approach aims to simultaneously drive growth and profitability.
Innovations and Expansions:
In recent developments, Rivalry introduced the Rivalry Ultimate Fan, a fantasy sports game centered around the National Basketball Association. This game not only allows fans to create their dream teams but also offers the opportunity to collect real-life NBA merchandise.
Diversifying Offerings:
Additionally, Rivalry expanded its product mix by introducing a branded slots category to its Casino.exe platform. This move strategically taps into the popularity of online slots, catering to Millennial and Gen Z players while reinforcing the operator’s position in the market.
