World Class Global Bookmaker Pinnacle, Alongside Technology and Payments Stakeholders, to Lead Strategic Financing, Further Validating Rivalry’s Millennial, Gen Z-Focused Strategy
TORONTO, April 26, 2023 (GLOBE NEWSWIRE) -- Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), an internationally regulated sports betting and media company, today announced a non-brokered private placement financing for gross proceeds of up to $10,000,000 through the issuance of up to of 6,666,666 subordinate voting shares in the capital of the Company (each, a “Subordinate Share”) at a price of $1.50 per Subordinate Share (the “Offering”). All dollar figures are quoted in Canadian dollars.
“The terms and strategic value of the stakeholders participating in this round represent a vote of confidence in our one-of-a-kind team, market strategy, and unique ability to execute within this emerging vertical,” said Steven Salz, Rivalry Co-Founder and CEO. “Our playbook is built around a generational opportunity to capture and engage a next generation audience through world class creative, proprietary and engaging products, and market leading brand equity in esports. We are growing rapidly with a successful strategy in place and talented team behind us, and with this funding we anticipate both continuing our pace of growth and our trend toward profitability.”
World class global bookmaker Pinnacle, alongside technology and payments stakeholders, will lead the strategic financing round. The proceeds from the Offering will enable Rivalry to accelerate its operational objectives and pursue strategic growth opportunities to scale the economic return of its unique market strategy.
“As a leader and innovator in online betting, Pinnacle is constantly looking for like-minded partners to help further grow the industry and our global footprint,” said Paris Smith, Pinnacle CEO. “That is what led us to Rivalry, and it is impressive how in a short period of time, they have carved out a powerfully unique position in the field of online betting. The company’s long-time focus on product innovation, brand equity, and next generation consumers is disrupting traditional ways of thinking in the industry and blazing a trail for industry economics that were previously not thought possible. As a long-standing commercial partner of Rivalry, we’ve had a front row seat to their incredible growth and are confident in the company’s trajectory.”
“Our commercial relationship with Pinnacle stretches back several years, leveraging their market-leading esports and risk management solution to provide a best-in-class offering for our users,” Salz continued. “Pinnacle’s commitment in our financing round adds a valuable layer of expertise to our organization and credibility in our distinct market approach, and we look forward to expanding our relationship with them in this next chapter of the company.”
The Offering builds on more than two years of consecutive record-breaking results for the Company, averaging double-digit month-over-month growth in revenue on a trailing two year basis as at March 2023, a fast-growing user base of Millennial and Gen Z consumers, accounting for 97% of active bettors in 2022, and a market-leading esports betting product which generated the vast majority of the Company’s sportsbook handle in 2022.
The non-brokered private placement financing for gross proceeds of up to $10,000,000 through the issuance of up to of 6,666,666 Subordinate Shares at a price of $1.50 per Subordinate Share is expected to close in one or more tranches commencing on or about May 5, 2023, subject to receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation. The Company may pay a finder's fee to eligible persons pursuant to applicable securities laws and the policies of the TSX Venture Exchange.
Rivalry Corp. wholly owns and operates Rivalry Limited, a leading sport betting and media company offering fully regulated online wagering on esports, traditional sports, and casino for the next generation of bettors. Based in Toronto, Rivalry operates a global team in more than 20 countries and growing. Rivalry Limited has held an Isle of Man license since 2018, considered one of the premier online gambling jurisdictions. Rivalry holds a sports bookmaker license in Australia and an internet gaming registration in Ontario and is currently in the process of obtaining additional country licenses. The Company also has a variety of originally developed products, including Quest, an on-site engagement experience, a first-party casino game called Rushlane, and a proprietary casino platform that houses third-party games, Casino.exe.
Cody Luongo, PR & Communications
Cautionary Note Regarding Forward-Looking Information and Statements
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “project” and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking statements in this news release include, but are not limited to, statements in respect of the Offering, including with respect to the terms and completion thereof and the participation of Pinnacle.
Forward-looking statements are based on the opinions and estimates of management of the Company at the date the statements are made based on information then available to the Company. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include regulatory or political change such as changes in applicable laws and regulations; the ability to obtain and maintain required licenses; the esports and sports betting industry being a heavily regulated industry; the complex and evolving regulatory environment for the online gaming and online gambling industry; the success of esports and other betting products are not guaranteed; changes in public perception of the esports and online gambling industry; failure to retain or add customers; the Company having a limited operating history; negative cash flow from operations; operational risks; cybersecurity risks; the impact of the COVID-19 pandemic; reliance on management; reliance on third parties and third-party networks; exchange rate risks; risks related to cryptocurrency transactions; risk of intellectual property infringement or invalid claims; the effect of capital market conditions and other factors on capital availability; competition, including from more established or better financed competitors; and general economic, market and business conditions. For additional risks, please see the Company’s prospectus dated September 17, 2021 and other disclosure documents available on the Company’s SEDAR profile at www.sedar.com.
No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
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Source: Rivalry Corp.