Rivalry Corp., a leading sportsbook and iGaming operator for Millennials and Gen Z, has announced a non-brokered private placement offering of convertible debentures, and the closing of the first tranche of such offering for aggregate gross proceeds of $14,000,000.
The investment comprising this initial closing came from an existing institutional shareholder. All dollar figures are quoted in Canadian dollars.
“We are very pleased to receive the support of a long-standing institutional shareholder of Rivalry with this investment,” said Steven Salz, Co-founder and CEO, Rivalry. “Rivalry’s unique product mix and position in the marketplace has brought the business to the inflection point it’s reached today. We’re deeply confident in the underlying trends the business is showing and maintain our expectation to achieve profitability in H1 2024.”
“Strengthening our balance sheet positions the company to maximize the opportunity in front of us. The capital will enable Rivalry to accelerate the development and release of new products, expand marketing efforts, and extend into new geographies and verticals, setting us on a path where we can pursue growth and profitability at the same time,” Salz added.
The company has also released Rivalry Ultimate Fan, a standalone daily fantasy sports app for the 2023-24 NBA season launched in partnership with Low6, a leading gamification innovator.
“Rivalry Ultimate Fan applies our Gen Z playbook to the world of fantasy sports to engage the next generation of basketball fans and strategically position our brand within a new vertical,” said Mr. Salz. “Expanding further into the traditional sports segment enables us to introduce the unique betting experience we’ve built to a new community of players and realize the operating leverage we see in other parts of the business among a broader audience. Low6 has delivered an innovative free-to-play product that fits well into this strategy and builds our presence in an important category.”