Rivalry, a leading iGaming and online sports betting company, has secured a CAD 14 million (roughly $10.23 million) investment for an undisclosed existing institutional shareholder.
The agreement represents a non–brokered private placement offering of convertible debentures under which each convertible debenture will consist of CAD 1,000 principal amount of 10% senior secured convertible debentures of the Company, maturing on November 14, 2027.
The convertible debentures will bear interest from the date of issue at 10% a year and will be payable in cash quarterly arrears on March 30, June 30, September 30 and December 30 of each year.
Rivalry also noted that additional tranches of the non-brokered private placement offering may close for aggregate gross proceeds of up to CAD 27,500,000.
All securities connected to the offering will be subject to a hold period of four months. The securities have not been and will not be registered under the US Securities Act of 1933.
The Money Will Help Rivalry Strengthen Its Business
Rivalry announced that the net proceeds received through this arrangement will be used to fund general working capital and corporate purposes.
Stephen Salz, Rivalry’s co-founder & chief executive officer, commented on the investment, saying that his team is very pleased to have secured support from a long-standing institutional shareholder.
Salz noted that the company’s unique product mix and market position allowed it to reach its current “inflection point.” He is confident in Rivalry’s position and expects the company to further bolster its profitability in the first half of 2024.
Commenting on the new investment, Salz said:
The capital will enable Rivalry to accelerate the development and release of new products, expand marketing efforts, and extend into new geographies and verticals, setting us on a path where we can pursue growth and profitability at the same time.
Stephen Salz, co-founder & CEO, Rivalry
In other news, Rivalry just bolstered its product mix with the launch of Rivalry Ultimate Fan, a brand-new fantasy sports game focused on the National Basketball Association. The game allows fans to build their dream team while also collecting real-life NBA merchandise.
A month ago, Rivalry also added a branded slots category to its Casino.exe platform. The move sought to capitalize on the popularity of online slots to help the operator reinforce its business while still appealing to Millennial and Gen Z players.