Shares in NorthStar Gaming Holdings gained more than 9 per cent in Toronto on Monday after the company announced new financing.

Subject to final approval by the TSX Venture Exchange, NorthStar has entered into a credit agreement in respect of a senior secured first lien term loan facility, providing for loans up to CA$43.4 million from Beach Point Capital Management.

This represents the largest financing in the history of the Canadian betting and gaming operator and is supported by technology and marketing partner Playtech, which together with some of its subsidiaries has agreed to provide credit support for certain obligations under the credit facility.

“This is a pivotal moment for NorthStar, marking the largest financing in our history,” said NorthStar Chair and CEO Michael Moskowitz. “This credit facility strengthens our balance sheet and directly supports our ability to scale operations and drive the business towards profitability with a single-minded focus.

“We are grateful to Beach Point Capital Management for their trust in our strategy and vision. We are also thankful for Playtech’s steadfast partnership which was instrumental in securing this funding, reinforcing their value both strategically and as a technology provider.”

Beach Point managing director Gabriel Fineberg commented: “Beach Point has deep experience investing across the gaming sector and is excited to partner with NorthStar to support their strategic initiatives. The online gaming sector has been growing rapidly, and this investment reflects our confidence in the company’s leadership, market potential, and ability to deliver long-term sustainable growth.

“Likewise, we value the partnership with Playtech, who are contributing their leading technology, global reach, and strategic vision towards NorthStar’s continued success.”

NorthStar will use the credit facility to repay $9.5 million loaned to the company by Playtech, and to fund an interest reserve account in respect of the credit facility of $7 million. It will also use the funds for working capital and general corporate purposes, and to pay transaction costs in connection with the credit facility.

Shares in NorthStar Gaming Holdings Inc (TSX:BET) closed 9.09 per cent higher at CA$0.06 per share in Toronto Monday, while shares in Playtech plc (LSE:PTEC) were trading 1.39 per cent higher at 730.00 pence per share in London Tuesday morning.