FansUnite Sells Betting Hero Business to GeoComply Solutions and Hero Group Corp.

Financial Details and Shareholder Impact

The deal involves the sale of all outstanding shares of Betting Hero for a total of $37.5 million. Of this amount, $30.6 million will be paid in cash at the closing, which is anticipated to occur in August 2024.

FansUnite expects to net approximately $20 million from the sale. Betting Hero’s co-founders, Jai Maw and Jeremy Jakary, will retain a 60% shareholding in the business, with GeoComply holding the remaining 40%.

FansUnite has committed to distributing 90% of the net proceeds from the sale to its shareholders, resulting in anticipated dividends ranging from CAD 0.065 to CAD 0.075 per share.

The transaction has received the approval of FansUnite’s board of directors, which has recommended that shareholders vote in favor of the deal at the upcoming meeting. The company emphasized that the deal follows thorough consultations and promises to provide an attractive premium and immediate liquidity for shareholders, along with opportunities for future exposure.

Conditions for Completion

The completion of the sale is contingent upon several conditions, including shareholder approval, acceptance by the Toronto Stock Exchange (TSX), and regulatory approvals. Following the sale, FansUnite will no longer possess any material property or assets and plans to retain CAD 500,000 for exploring new business opportunities.

Quinton Singleton, an independent member of FansUnite’s board and chair of its special committee, commented on the strategic nature of the transaction, stating, “The company’s leadership believes that the transaction represents the best available path forward for the business and its shareholders. The distribution will provide immediate liquidity to the shareholders, and the special committee is unanimous in its belief that the transaction is in the best interests of the company and the shareholders.”

Scott Burton, CEO of FansUnite, also expressed optimism about the deal, highlighting the substantial cash offer for the company’s primary remaining asset. He noted, “It not only reflects high market multiples when compared to similar transactions but also a substantial premium to our current share price.”