XLMedia acquires $33.5 million for Sports Betting Dime acquisition
XLMedia has announced the accumulated £24 million, or $33.5 million, in order to help out with the funding of its takeover of Sports Betting Dime, the sportsbook review site.
On Thursday, XLMedia decided to purchase the review website for £26.0 million, and this takeover will be offering it a US-focused affiliate sports wagering brand and also reinforcing its position in the USA’s legal sports betting scene. The company also stated that it will be funding a large portion of this takeover using some share offerings, such as a placement of 58,727,398 shares.
All of these shares were said to be valued at £0.40 for each one, and old and new investors would be partaking in the offering. This placement was able to amass £24 million, but when considering the expenses it will cost, the company will be left with around £22.9 million or so.
Furthermore, some directors at XLMedia and even some employees had decided to subscribe to about 1,272,602 shares, worth £.40 per share, which meant an extra £509,041 in finances.
Stuart Simms, XLMedia chief executive, stated:
“It is extremely pleasing to see the level of support received from both new and existing investors as part of this heavily oversubscribed fundraising. The level of demand for the placing reflects confidence in XLMedia’s strategy and growth potential in the US sports betting market.”
XLMedia will pay an initial $11.0m up front to acquire Sports Betting Dime, together with up to $500,000 as a reimbursement of the website’s operating expenses per month since the beginning of the current year. A further $10.0m will be payable on the first anniversary of the deal, and then the final $3.7m after 18 months.
Moreover, XLMedia will be paying $11 million to the company in order to obtain it, as well as about $500,000 in a compensation for the site’s operational costs for every month in 2021 so far. Another $10 million will be provided on the one year anniversary on the agreement and an additional $3.7 million after the passing of 18 months.