Rivalry Corp Secures $14 Million for Expansion
In a significant move for the online gaming and sports betting industry, Rivalry Corp. announced a substantial CA$14 million investment aimed at accelerating its growth and expansion strategies. This investment marks a pivotal moment for the company, known for its innovative approach to catering to the Millennial and Gen Z demographics.
Key Investment Highlights
The investment, achieved through a private placement offering of convertible debentures, underscores Rivalry’s robust financial strategy. With no broker involvement, the initial tranche attracted an impressive CA$14 million in gross proceeds, primarily from an existing institutional shareholder. This capital infusion is set to boost Rivalry's operations in critical areas like marketing, product development, and geographic expansion, with an ambitious goal of reaching profitability by the first half of 2024.
Convertible Debentures: A Strategic Move
Each convertible debenture in Rivalry Corp's offering, valued at CA$1,000, is a 10% senior secured convertible debenture, maturing on November 14, 2027. A key feature of these debentures is the option for holders to convert the principal amount into subordinate voting shares in the company's capital at any time before the close of business on the last working day immediately preceding the Maturity Date. This conversion can be done at a fixed rate of CA$1.40 per Subordinate Voting Share. This conversion option offers investors a potential share in the company's equity, making the debentures an attractive investment for those looking to benefit from Rivalry’s potential market growth and success.
CEO's Vision for the Future
Steven Salz, Co-founder and CEO of Rivalry, expressed his satisfaction with this milestone. He highlighted the company’s unique market position and its promising business trends. Salz emphasized that the capital boost would enable Rivalry to expedite new product releases, amplify marketing initiatives, and venture into new markets and verticals, all while balancing growth with profitability.
Key Terms of the Offering
Rivalry Corp's convertible debentures offering entails an annual interest rate of 10.0% from the issuance date, with interest payments made in cash on a quarterly basis in arrears. These payments are scheduled for March 30, June 30, September 30, and December 30 each year, with the first payment commencing on December 31, 2025. This arrangement includes interest accrued from the issuance date to the initial payment. Additionally, the offering may expand through additional tranches, potentially raising up to CA$27,500,000 in total gross proceeds, inclusive of the initial tranche. This structure reflects Rivalry's strategic financial planning to support its growth and expansion in the online gaming and sports betting market.
Rivalry's Global Footprint and Regulatory Compliance
Rivalry, a leader in esports, traditional sports betting, and online casino games, continues to solidify its global presence, operating in over 20 countries. The company prides itself on compliance, holding licenses in reputable jurisdictions, including the Isle of Man and Australia, and actively seeking additional country licenses. Its proprietary technology platform and unique product offerings position the Rivalry Sportsbook & Casino as a frontrunner in the industry, appealing to a new generation of gaming enthusiasts.
Our Perspective
At OntarioGambling.ca, we see Rivalry Corp's latest financial strategy as a strong indicator of the company's forward-thinking approach and confidence in the online gaming and sports betting market. Their decision to raise CA$14 million through convertible debentures is not only a smart financial move but also a clear commitment to cater to the evolving preferences of younger audiences. The potential expansion of the offering to CA$27,500,000 demonstrates their ambition and market foresight. However, the success of this strategy will depend on Rivalry's ability to effectively use these funds for innovation and market expansion in a highly competitive industry. As industry observers, we'll be keenly watching Rivalry’s progress towards their growth and profitability goals in the dynamic online gaming landscape.
Source: Rivalry News
With more than half a decade of experience, Meri Zimic has been planning, writing, and publishing content for OntarioGambling.ca and the GambleSites Network since the inception. With her Bosnian heritage, she loves the multi-cultural aspect of Ontario and it's varied players.
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