The Online gambling operator known as PointsBet has recently revealed that it raised a total amount of AU$70.5m (£51.2m/€43.4m/US$51.1m) via its fully underwritten entitlement offer the first stage. The new offer, which was recently launched, will see the operator issue around 10.8m new shares, each costing $6.50, with about 55% of shares sold to existing shareholders. 

PointsBet now seeks to generate a total amount of $153.2m via the entitlement offer while stating that the scheme’s first segment met up to its expectations. The second part of the initiative, involving a retail entitlement offer, is set to be open on September 11 to raise approximately $82.7m.

Eligible retail shareholders in locations like New Zealand and Australia can also take part in the offer at the entitlement offer price, with the alternative to purchase new shares at $6.50 per share. Shareholders have until September 22 to participate, with retail rights trading to be made available from the 9th to September 15. Entitlements that are not taken up under this offer will be sold through a retail shortfall bookbuild on September 25. 

The wider entitlement offer makes up part of a more significant fundraising effort at PointsBet, with the ultimate aim of raising an additional $300m in funds. There is a five-year agreement between Pointsbet and NBC Sports, under which the online gambling operator committed to marketing spend of US$393m. Pointsbet will be incorporated in multi-platform game day integrations across the total of eight NBC Sports Regional Networks in the United States.

PointsBet is also set to become an official partner to the NBC Sports Predictor and integrate its content across the app, expanding the range of games available to users. Exclusive PointsBet odds integrations will then be incorporated into NBC Sports’ fantasy, Rotoworld, as well as sports betting digital property. 

At the same time, PointsBet will further be integrated with online casinos that allow minimum deposits and NBC Sports’ consumer golf brand known as Golfnow. PointsBet will now be the sole provider of odds, props, and trends for NBCSN and Golf Channel, including their digital properties, and Peacock, which is NBCUniversal’s new streaming service, and the NBC Sports Podcasts.

The managing director and group chief executive of PointsBet, Sam Swanell, said that through the NBC Sports partnership, PointsBet is granted access to market-leading linear assets that boast 184m viewers and digital assets that also generate  60m monthly active users. 

He added that these assets would function as the cornerstone of PointsBet’s marketing strategy. The firm’s in-house technology and products, plus the company’s experienced and talented team, is set to deliver outstanding client acquisition with retention efficiency they scale rapidly over the next half-decade.

David Preschlack, the president of NBC Sports Regional Networks, added that for NBCUniversal and PointsBet, this agreement provides considerable opportunities in the rapid-growing online sports betting marketplace, which is specific to this robust and extensive, multi-year arrangement. 

The 66.9m consideration options are expected to be exercisable at Aus$13 for each option, with the agreed value of the options that amount to Aus$105.3m. NBCUniversal can elect to get the full cost of the options at any time before the options eventually expire. Should NBCUniversal decide to exercise the consideration options based on a cash settlement, PointsBet would get an extra Aus$870.0m in funding.

However, should the approval of shareholders not be secured by November 28 this year, then either party could terminate the share agreement. This would be interpreted to mean that the full spend at New Zealand gambling market won’t be offset, while NBCUniversal would have the right to terminate the exclusive partnership within half a year.

Meanwhile, PointsBet has now set out plans to generate an extra Aus$300m through a capital raising, intending to have the process launched on September 2. The offer price will then be determined by the time the process begins, but it is anticipated that the ratio of entitlement offers will be one new share for every 6.5 shares that are held on the launch date.

Options will possibly have an exercise price of Aus $ 13 each and will also be exercisable until the expiry date, which PointsBet stated should be September 30, 2022. PointsBet also mentioned that the placement might go up more or less than its goal of Aus$300m. 

Last week, PointsBet also revealed that it had surpassed its original expectations in the first part of the project, generating $200m via a share placement. The operator mentioned selling off a total of 18,181,819 new shares at $11 per unit. Should the rest of the entitlement offer proceed as expected, this could mean that the operator may raise approximately $353.2m.