Better Collective, a leading sports betting affiliate with increasing presence in the United States market, has recently announced the closing of a directed new share issue of 4 million shares at a price of SEK 78 per share. The sale is said to have raised proceeds of SEK 312 million for the company before transaction costs were deducted.
The directed share issue reflects a dilution of about 9% of the number of votes and shares in the company, and the proceeds have already been earmarked for the company’s planned M&A activities. According to the affiliate, subscription in the issue was significantly oversubscribed because of the high demand from both Nordic and international institutional investors.
The subscription price was determined via an accelerated bookbuilding procedure. This means that the Board of Directors agreed that the price is in accordance with market conditions. The reason why the Board chose to deviate from the shareholders’ preferential rights is that the company needed to raise capital for its continued growth trajectory through acquisitions in a timely and cost-effective manner.
Better Collective lauded the result of their US and Swedish acquisitions in their third quarter report. They enjoyed a growth of 54% in their revenue year-on-year, earning €17.1 million for the quarter. Even the company’s new depositing customers have increased in number, exceeding 85,000 in the third quarter, marking a growth of 27%.
Better Collective CEO Jesper Søgaard has this to say: “I am very pleased to see the broad-based interest from both current and new shareholders wanting to invest in our further growth. Better Collective has completed seven acquisitions at a total value greater than €125 million since the IPO in June 2018. The proceeds from the transaction allow us to continue the growth path including M&A, which we believe has contributed significantly in placing Better Collective as the leading company within sports betting affiliation.”
It is believed that those who subscribed shares in the issue received their shares in the first week of December. In order to facilitate share delivery on the expected date, J. Søgaard Holding ApS and Chr. Dam Holding ApS each lent 2,000,000 existing shares to Nordea Advisory & ECM, which is part of Nordea Danmark, Filial af Nordea Bank Abp, Finland. The company has also agreed to a lock-up undertaking concerning future share issuances for a 180-day period. The lock-up undertaking is subject to specific exceptions, such as the company being able to carry out future share issuances as long as they’re done in the context of and as an integral part of an industrial deal in accordance with the announced growth strategy.
As a consequence of the share issuances, Better Holding 2012 A/S--the joint holding company of Jesper Søgaard, CEO and Christian Kirk Rasmussen, COO of Better Collective--has decided to distribute its direct shareholding in the company as dividends to J. Søgaard Holding ApS and Chr. Holding ApS. The restructuring that recently occured has not caused any change in the ultimate ownership of Jesper Søgaard and Christian Kirk Rasmussen, who each hold approximately 26.53% following the share issuance.