Mobile sports media and entertainment company Score Media and Gaming received a windfall investment of C$40 million from Fengate Asset Management, a multibillion-dollar investment manager. 

Fengate will purchase a $40 million convertible unsecured subordinated debenture of theScore at an 8 percent annual interest rate, with the debenture scheduled to mature on August 31, 2024.

“theScore’s unique ability to integrate sports betting into their industry-leading mobile sports media platform makes this investment a strong addition to our growing private equity platform investing across North America,” said Justin Catalano, managing director and group head of private equity at Fengate.

Funding will be directed towards building theScore’s mobile gaming and media platform. theScore’s mobile betting app is one of the largest in Canada, with millions of users per month. The company plans to expand its sports betting app service, including launching a sportsbook in the US.

“theScore is focused on becoming a leader in mobile sports gaming in North America and this strategic investment significantly enhances our ability to execute on this plan,” commented John Levy, founder and CEO of theScore.

“Fengate is recognized as a highly respected and experienced investor across North America, with significant expertise in the gaming industry,” Levy continued. “(It is) the perfect strategic investment partner as we launch our best-in-class mobile sportsbook in the United States.”

The deal is anticipated to close on Thursday (September 5), pending approval from the TSXV.

Online sports betting has been growing at a considerable clip due to recent regulations and mobile development.