Canadian esports betting operator and media business, Rivalry, has announced it will be raising CA$10m (US$7.3m/€6.6m/£5.9m) in strategic financing through the issuance of new stock.
The company plans to issue up to 6,666,666 subordinate voting shares at a price of $1.50 per share to raise the financing. Pinnacle, an online bookmaker, along with a number of other technology and payments stakeholders, will be participating in the financing round.
Rivalry co-founder and CEO, Steven Salz, said that the terms and strategic value of the stakeholders taking part in the round represented "a vote of confidence" in the company’s team and market strategy. The proceeds from the offering will enable Rivalry to accelerate its operational objectives and pursue strategic growth opportunities.
Paris Smith, CEO of Pinnacle, said: "As a leader and innovator in online betting, Pinnacle is constantly looking for like-minded partners to help further grow the industry and our global footprint. That is what led us to Rivalry and it is impressive how, in a short period of time, they have carved out a powerfully unique position in the field of online betting."
The announcement of new funding comes after Rivalry's preliminary full-year and Q1 results, in which the company reported an all-time high quarterly revenue of $12m.
Rivalry reported revenue of $26.6m for the year 2022, a 140% increase from the $11.0m reported in 2021, and earned this revenue on a betting handle of $232.8m, a 198% rise compared to the $78.2m achieved in 2021.
Rivalry made a net loss of $31.1m, a 28.0% increase compared to the $24.2m recorded in 2021. As of 31 December 2022, Rivalry had $16.4m in cash and no debt.
For Q1 2023, Rivalry reported a betting handle of $120.2m, a 99% increase from the $80.0m recorded in the same period the previous year. On these stakes, the company announced an all-time quarterly high revenue total of $12.0m, a 251% increase from the $4.8m achieved in 2021.
The company's net loss stood at $3.5m for the quarter. Salz said that the company's market strategy and operational excellence continue to build upon consecutive record-setting quarters, driving a strong finish to the year and a robust Q1, while demonstrating sequential narrowing losses on their path to profitability.
