Canadian betting and media business theScore has commenced a consolidation of its outstanding Class A shares and special voting shares, ahead of a potential listing on the New York Stock Exchange in the US.
The consolidation came into effect from yesterday (February 11), with Class A shares expected to commence trading on the Toronto Stock Exchange from February 18, following the completion of the consolidation.
The business said the consolidation will see one new Class A share issued for every 10 currently outstanding Class A shares, with the same ratio to be applied to its special voting shares.
As such, theScore expects its 434,425,695 Class A shares to be consolidated to 43,442,568 shares, while the 5,566 special voting shares will be consolidated as 557 shares, subject to rounding for any fractional shares.
theScore said no fractional shares would be issued, with shares with fractional interest of 0.5 or greater to be rounded up, and lower than 0.5 rounded down, to the nearest whole number.
“This share consolidation is a significant step that positions us for the potential US stock exchange listing we have been considering,” theScore founder and chief executive John Levy said.
“We believe a US listing would benefit our business and shareholders as we seek to further execute on the growing opportunity in the rapidly developing North American sports betting market.”
Registered shareholders with share certificates will be sent a letter of transmittal advising of the share consolidation, with instruction on what they need to do next.
Shareholders with uncertificated shares will have their existing book-entry account electronically adjusted by theScore’s transfer agent or, for beneficial shareholders, by their brokerage firms, banks, trusts or other nominees that hold in street name for their benefit.
The consolidation comes after theScore last month reported a 7.6% year-on-year fall in revenue for its first quarter, with a record performance from its media division offset by sportsbook losses.
Revenue fell to CAD$8.5m ($6.7m) for the three months to 30 November, 2020, despite its media division reporting record revenue of CAD$10.6m, up 15.2% from the prior year.