Scout Gaming raises SEK75m through share issue
Scout Gaming is targeting accelerated growth of its daily fantasy sports (DFS) B2B products after raising SEK75m (€7.3m/$8.3m) through a share issue.
The cash was raised through the issuance of 1.84m shares through a book-building procedure that was authorised at Scout’s annual general meeting on 25 May. This included a directed share issue to the existing Santa Monica-based institutional investor Topline Capital Partners Ltd, of 1.2m shares.
The Stockholm-listed supplier will receive approximately SEK45m before transaction costs from the share issue, and approximately SEK30m before transaction costs from the directed share issue.
Scout said the share issue was substantially oversubscribed, with the subscription price set to SEK25 per share. That figure is at a 14.6% premium compared to the average volume-weighted price of the company's share on the Nasdaq First North Growth Market over the past 30 trading days.
Subscribers in the in the share issue included the German institutional investor Lloyds AG, Provobis and Knutsson Holding.
Scout chief executive Andreas Ternström said: “Scout Gaming is in an intensive growth phase establishing the DFS vertical globally.
“We are at the same time launching many new products and markets, just recently esport had a warm welcome. I’m sure that we trough this placing can capture additional market possibilities to accelerate the growth even more rapidly.
“I’m very pleased to attract both new and existing institutional investors as well as sector specialists.”
In Q1 2020 Scout saw revenue grow 149% year-on-year to SEK8.7m. Earnings before interest, tax, depreciation and amortisation improved to a loss of SEK11.7m compared to a SEK14.7m loss in the prior year. Net result improved to a loss of SEK9.8m compared to a loss of SEK16.1m.
In 2020 to date, Scout has agreed a deal to supply Norsk Tipping with its full DFS offering, and partnered with Hero Gaming. It has also entered into an agreement with Bet Entertainment Technologies to deliver the company’s DFS platform in Latin America and Portugal.