PointsBet to raise £65m for expansion plans
PointsBet has halted trading on the ASX ahead of a major share placement and capital raising program.
PointsBet will raise $122.1 million through a fully underwritten capital raising. This comprises a $60 million institutional placement and a 1 for 6 accelerated pro rata renounceable entitlement offer with retail entitlements trading to raise $62.1 million.
The placement to raise $60 million will be undertaken at $3.60 per new share. This represents a 13.9% discount to PointsBet’s last closing price of $4.18. Whereas the 1 for 6 entitlement offer will be undertaken at $3.20 per new share.
Management advised that the proceeds raised under the capital raising will be used to support market and client acquisition and technology and product development.
They will also be used to support the development of its US business. This includes market access and government licensing fees, sportsbook fit out costs, and balance sheet flexibility.