Better Collective closes SEK1.5bn share issue as US plans proceed
Danish affiliate giant completes “significantly oversubscribed” share issue amid high demand from institutional and professional investors
Better Collective has concluded a SEK1.5bn (£127.7m) share rights issue as the firm looks to build on the “unprecedented market opportunity” of the US market.
A total of 6.9 million shares were issued by the Copenhagen-based affiliate at a price of SEK218 per share, roughly 12.8% of the company’s total issued shares which have increased to 53,864,806 following the issue.
In connection with the transaction, Better Collective CEO Jesper Søgaard and COO Christian Kirk Rasmussen have each lent the company 3,440,367 shares from their respective holding companies.
Better Collective said the share offering was necessary to increase the firm’s financial flexibility following its $240m acquisition of US sports betting media platform Action Network earlier this month.
Speaking at Better Collective’s Q1 2021 financial results where revenue increased by 86%, Søgaard hailed the Action Network product as being the “absolute best and most complete” in the US sports betting market.
Buoyed by the record acquisition, which is due to complete in Q2, Better Collective expects full-year 2022 revenue to surpass €200m and has also increased 2021 estimates to €180m.
Better Collective revealed the share issue was “significantly” oversubscribed due to high demand from institutional and professional investors.
Discussing the rights issue, Søgaard said he was pleased with the high level of support for the affiliate from both existing and new shareholders alike.
“We are very excited about the transaction and the market’s receptiveness of the acquisition of Action Network, which underpins our strategy to capitalise on the unprecedented market opportunity in the US within sports betting affiliation,” he said.
“With the proceeds from this transaction, we maintain a flexible capital structure in order to be able to act on future strategic opportunities,” Søgaard added.
In connection with the transaction, Better Collective has agreed a lock-up prohibiting future share issues for a period of 90 days. The only exception to this rule is if this share issue becomes an “integral part” of an acquisition pursuant to the company’s growth strategy.