Established iGaming industry stakeholders Playtech and the NorthStar Gaming Holdings extend the strategic partnership from June 2023 to reinforce their operations in the growing Ontario market. Their respective verticals, Playtech Software Limited and the NorthStar Ontario, will be able to exclusively focus on the operating goals set after Playtech has agreed to funnel CA$3.0m (US$2.2m) in short-term financing to NorthStar to facilitate player pool expansion in Ontario.

$4.0 Million Financing Facility

The original strategic agreement signed in June 2023 included a complete availability of Playtech Software’s services for the operator. The facility valued at $4.0 million was a key driver for NorthStar to increase its presence in the Canadian province in 2023 and grow revenues accordingly.

Six-Month Extension

The strategy seems to have proven successful as the deal is now extended. Under the extension, Playtech Software will continue with the provision of similar marketing services once again valued at $4.0 million. The renewed contract has been set for a six-month performance and will run through 31 October 2024.

Reimbursement Plan

Under the agreement, NorthStar will use the short-term financial facility to boost its marketing activities and repay the funds to Playtech Software from the income generated over the contract period. The operator will benefit from the balance between the revenue generated and the six-month financing cost, while the provider may benefit from the financing conditions.

Financing Ontarian Expansion

As for these conditions, NorthStar has already issued a $3.0m unsecured, interest-bearing promissory note to Playtech, with interest rate of 8.0% per annum, payable in arrears at maturity. According to NorthStar, the investment will help the company’s balance sheet adjustments and continued expansion in Ontario.

NorthStar chair and CEO Michael Moskowitz commented: “We are very pleased to continue to strengthen our relationship with Playtech, one of the world’s leading gambling technology companies. Their ongoing support has been instrumental in helping us to acquire new customers, provide a premium online gaming experience and fund the expansion of our brand in Ontario and across Canada.”

$12.25 Million Investment Boosts Collaboration

The extension of the 2023 strategic agreement comes after Playtech agreed to make a $12.25 million strategic investment in the NorthStar Ontario-based online casino and sports betting facility a few months earlier. In fact, the strategic partnership between the two companies dates back to December 2021. Since then, Playtech has supported NorthStar and the the existing contract for software and services has now been extended by 10 years.

Repayment Guarantee

Playtech’s investments are converted into equity and warrants related to Baden Resources Inc, a company acquired by NorthStar in March 2023.In this way, Playtech holds around 16% of shares belonging to NorthStar, as well as warrants to potentially acquire above 20% stake in this company. The transaction is additionally secured by the inclusion of Playtech’s chief financial officer Chris McGinnis in the board of directors of the subject entity.

Source: “Playtech renews Ontario deal with NorthStar and advances financing’’. iGaming Business. April 29, 2024.

The post Playtech and NorthStar Extend Investment Deal in Ontario appeared first on Keno Wizard.

The owner and operator of NorthStarbets.ca, an online casino and sportsbook gaming platform in Ontario, NorthStar Gaming, unveiled future changes to its senior-level team. The company has announced that its current chief financial officer (CFO), Jennifer Barber, intends to step down from her role. The C-suite change is effective a month from now, starting from December 1, 2023.

Details on why Barber decided to step down from her role with NorthStar were scarce. Still, the company confirmed that once she steps down from her CFO role, she plans to pursue “another opportunity.” To fill in the vacant role, NorthStar confirmed it selected Chin Dhushenthen, one of its senior-level executives with extensive experience.

According to the company, once Barber steps down from her role, Dhushenthen, who currently serves as the company’s vice president, finance and compliance, will be appointed to the role of interim CFO. As interim CFO, he will oversee strategic financial processes and ensure the smooth transition to a new permanent CFO.

NorthStar did not disclose whether or not it has already started going through either internal or external applicants for the permanent CFO role. The company also did not disclose a timeframe on when it anticipates hiring a permanent CFO.

A Seasoned Executive Takes on the Role of Interim CFO

As interim CFO, Dhushenthen brings more than 25 years of executive-level experience within a wide range of verticals, including finance, risk management, technology and compliance. He initially joined NorthStar back in 2021 and since then played a key role in the development of the company’s financial reporting processes, as well as important functions related to regulatory reporting and compliance, among other strategic processes.

Outside of NorthStar, Dhushenthen held important senior-level roles with The Hunter Group, Azerty United Canada, as well as Hydrogenics Corporation. Before joining NorthStar Gaming, he was a part of the largest publicly traded provider of quality rental housing in Canada, CAPREIT. Overall, he was a part of the company for 13 years, holding important financial leadership roles.

“On behalf of the Board of Directors, I would like to thank Jennifer for her contributions at an important time in our Company’s development.“

Michael Moskowitz, chair and CEO at NorthStar Gaming

Michael Moskowitz, NorthStar’s chair and CEO, thanked Barber for her dedication and hard work. He praised her experience which drove the company’s development. At the same time, Moskowitz outlined that Barber played an important role in strategic financial processes, including the acquisition of Slapshot Media. “We wish Jennifer the best as she moves into a financial leadership role in a new sector,” he added. Finally, Moskowitz said that NorthStar anticipates a smooth transition to Dhushenthen as an interim CFO.

The post Jennifer Barber to Step Down from NorthStar Gaming CFO Role appeared first on Keno Wizard.

Canadian sports activities betting firm NorthStar Gaming introduced it has acquired a strategic funding of C$12.25 million ($9.19 million) from Playtech by the use of a convertible debenture mortgage.

Speed up Development, Increase Consumer Base

The funds offered by Playtech accomplished the concurrent financing NorthStar Gaming wants in reference to its reverse takeover of Baden Assets. As soon as the RTO is full, the Canadian gaming operator plans to use to start buying and selling on the Toronto Inventory Trade (TSX) Enterprise Trade.

Michael Moskowitz, chief govt officer of NorthStar Gaming, famous that “Playtech’s unparalleled experience within the gaming business” would assist NorthStar “speed up development” and additional increase its consumer base.”

“With the extra funding, we stay up for increasing our market share throughout Ontario and additional enhancing our premium, content-driven expertise for shoppers,” Moskowitz concluded.

Convertible Debenture Phrases

In response to the phrases of the financing, the debenture mortgage will convert into models of the corporate comprising one widespread share, and two half warrants with totally different train costs – C$0.85 ($0.64) and C$0.90 ($0.67) – and every C$0.50 ($0.37) of the excellent principal of the debenture will convert into one unit.

The 2 half warrants may have a time period of 5 years from the date of the conversion of the debenture whereas in relation to the RTO, the widespread shares given to Playtech on conversion might be exchanged for Baden Assets widespread shares on the identical phrases. In reference to the RTO, Playtech might be issued alternative warrants of Baden Assets on considerably related phrases because the warrants issued to Playtech on NorthStar Gaming.

An modification to the Software program and Providers settlement with Playtech was launched that will increase the partnership throughout your complete Canadian market, features a 10-year extension and modifications to sure industrial phrases.

Deepen Their Partnership

Mor Weizer, chief govt officer of Playtech commented on the deepened partnership with NorthStar as the corporate is looking for to determine a foothold in Canada as a market chief in on-line gaming.

“As a key accomplice of NorthStar of their early levels, we perceive and had been impressed by NorthStar’s distinctive enterprise mannequin and product providing and are excited to additional increase our partnership,” Weizer added.

Playtech’s chief monetary officer Chris McGinnis will be part of the Board of Administrators of NorthStar as a non-executive director and can act as Playtech’s consultant following the strategic funding settlement.

The proceeds of the debenture, along with the beforehand issued subscription receipts and subscription by Torstar Company introduced the capital raised in reference to the RTO to C$22.325 million ($16.74 million).

The post NorthStar Gaming Received Playtech Investment of C$12.25m appeared first on Keno Wizard.