Sports betting media group, Better Collective AS, an increasingly active player in the US gaming market, has expanded its cash options, having completed an oversubscribed bookbuild from institutional investors.
The firm, which recently acquired sports betting publisher Action Network Inc, has raised a further $183m in working capital in light of completing a direct issue of 6.9 million shares priced at $26 per share.
During Q2 trading, the company formally notified that it would launch a direct share placement for institutional investors, following its agreement to acquire Action Network for $240m on a cash and debt-free basis.
On completing the transaction, Better Collective stated that its allocated share placement had been heavily oversubscribed due to high demand from participating institutions and other professional investors.
The bookbuild, it said, was undertaken to improve its cash flexibility supporting all business units and will expand its corporate shareholding from 46-to-53 million, with the media group’s total share capital tracking at $658.5m.
Company CEO Jesper Søgaard noted investors’ positive response to Better Collective’s growth strategy and acquisition of the Action Network, which aims to establish the firm as the outright media publisher for US wagering.
“I am pleased to see the high level of support of our company from both existing as well as new shareholders,” he commented.
“We are very excited about the transaction and the market’s receptiveness of the acquisition of Action Network, which underpins our strategy to capitalize on the unprecedented market opportunity in the US within sports betting affiliation.
“With the proceeds from this transaction, we maintain a flexible capital structure in order to be able to act on future strategic opportunities.”
