Leading iGaming and online sports betting company, Rivalry, has successfully secured a CAD 14 million investment from an undisclosed existing institutional shareholder.
The investment comes in the form of a non–brokered private placement offering of convertible debentures, with each debenture consisting of CAD 1,000 principal amount of 10% senior secured convertible debentures maturing on November 14, 2027. These debentures will bear interest at a rate of 10% per year and will be payable quarterly in cash.
Rivalry also revealed that there is potential for additional tranches of the non-brokered private placement offering to close, with aggregate gross proceeds of up to CAD 27,500,000. All securities related to the offering will be subject to a hold period of four months and are not registered under the US Securities Act of 1933.
The net proceeds from this investment will be used by Rivalry to fund general working capital and corporate purposes, as stated by Stephen Salz, Rivalry’s co-founder and CEO. Salz expressed his pleasure in securing support from a long-standing institutional shareholder and highlighted the company’s unique product mix and market position, which has led to its current “inflection point.” He affirmed his confidence in Rivalry’s position and anticipated further profitability in the first half of 2024.
Salz also emphasized that the investment will enable Rivalry to accelerate the development and release of new products, expand marketing efforts, and extend into new geographies and verticals, aiming for growth and profitability simultaneously.
In addition to the investment news, Rivalry recently launched Rivalry Ultimate Fan, a fantasy sports game focused on the NBA, and added a branded slots category to its Casino.exe platform to appeal to Millennial and Gen Z players. These moves reflect Rivalry’s commitment to strengthening its business and expanding its market reach.