Rivalry Corp saw its share price fall by more than 30 per cent on Monday after the company announced a review of strategic alternatives.
The Toronto-listed online betting and gaming operator said it has engaged boutique investment bank XST Capital Group to assist with the strategic review, which will evaluate a range of options for the business.
“We have built a strong foundation in the online gaming sector, delivering an exceptional experience for our players while driving operational excellence,” said Steven Salz, co-founder and CEO of Rivalry.
“This review is a natural step in assessing how we can best create long-term value for our stakeholders while continuing to enhance our world-class gaming platform.”
Rivalry launched in international markets in 2018 under an Isle of Man license and was awarded an online operator license in the Canadian province of Ontario in February 2022.
Rivalry then launched a B2B vertical before turning its focus to cryptocurrency gaming, rolling out its own crypto token in 2024 before adding the ‘$TRUMP’ token of US President Donald Trump as an accepted payment method on its platform at the start of this year.
The company said at the time that it has ongoing treasury holdings of various major cryptocurrencies and meme coins that it accepts as a deposit option. The value of virtually all cryptocurrencies and meme coins is significantly lower today.
Alongside the review of strategic alternatives to maximise stakeholder value, the company also announced a new US$650,000 senior unsecured loan from its existing senior lender, with the loan maturing on 30 September 2025 and carrying interest of 10 per cent per annum.
The company said the new funding will provide additional flexibility to pursue strategic initiatives.
Rivalry Corp is yet to publish its financial results for the fourth quarter of 2024 and the first quarter of 2025.
For the first nine of month of 2024, the company reported net revenue of CA$12.11 million and net loss of $16.46 million. This compared to 9M 2023 revenue of $13.23 million and net loss of $15.22 million.
The company had cash and cash equivalents of $139,107 at the close of the period ended September 2024, down from $3.73 million a year earlier, with an accumulated deficit of $110.49 million.
This prompted a warning at the time that the company may not be able to continue as a going concern if management is unsuccessful in its efforts to generate profitable operations.
Shares in Rivalry Corp (CVE:RVLY) lost 31.25 per cent on Monday to close at CA$0.055 per share.