Canadian media giant theScore has closed a private placement of Class A shares, raising $10m in funding for the planned launch of its sports betting platform in the US market.
The placement saw 22,222,223 Class A shares, priced at $0.45 per share, sold to participants including Penn National Gaming, and other investors including an entity controlled by theScore chief executive John Levy.
Penn National Gaming (PNG) has subscribed for shares worth $7.5m, equaling a 4.7% equity stake in the business, following the multi-state market access agreement announced on 1 August.
This 20-year agreement sees theScore granted the right to launch a first skin under PNG’s license in Louisiana and Mississippi; second skins in Iowa, Indiana, Missouri, Ohio and Texas; and third skins in Kansas, Michigan, Maine and Massachusetts.
PNG has the option to increase its stake in the business when additional fees related to the market access deals are due.
Levy, via John Levy Family Holdings, has subscribed for 2,222,222 Class A shares in a related party transaction. The offering remains subject to the final acceptance of the TSX Venture Exchange.
Of the $10m raised, $7.5m was paid to PNG to cover the upfront market access fees, with the remaining $2.5m to be used to support theScore’s expansion plans. It aims to launch a sportsbook, powered by Bet.Works, in the New Jersey market later this year.