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FansUnite set for Toronto delisting after completing Betting Hero sale

19th August 2024 11:13 am GMT

FansUnite Entertainment will be delisted from the Toronto Stock Exchange (TSX) on Wednesday after completing the sale of its betting and gaming affiliate business in the United States.

Following an initial agreement in June, FansUnite has sold its Betting Hero business to Hero Group for an aggregate purchase price of $37.5 million.

Hero Group is 60 per cent indirectly controlled by Betting Hero co-founders Jai Maw and Jeremy Jakary, and 40 per cent owned by geolocation specialist GeoComply.

Following closing of the transaction, FansUnite expects the TSX to delist the company’s common shares on Wednesday 21 August.

The company will apply to withdraw the quotation of its common shares from the OTCQB as soon as possible after the delisting.

“The completion of this sale represents the culmination of a tremendous amount of effort from the entire FansUnite team, and I am proud of what we have accomplished,” said FansUnite CEO, director and chairman Scott Burton. “I extend my sincere thanks to our shareholders for their support throughout this journey. I also want to acknowledge the exceptional efforts of our Board, advisors, and legal teams, whose dedication was vital in bringing this transaction to a close.

“We wish the Betting Hero and GeoComply teams continued success and look forward to exploring new opportunities that will create value for our shareholders.”

FansUnite is expected to distribute an aggregate amount of CAD$26 million to its shareholders as a return of capital, equivalent to $0.0725 per share.

The company will retain net cash of ‎$500,000 to explore new business opportunities for the economic benefit of ‎shareholders.

“GeoComply shares Jai and Jeremy's vision to deliver the very best player experience for our industry,” said GeoComply CEO Anna Sainsbury. “While digital analytics alone can offer great insights, they lack the in-person experience for operators to see, hear, and learn from real customer interactions.

“Betting Hero bridges that gap by delivering exceptional real-world UX insights. We experienced that firsthand ourselves as customers of their Research division, and now we’re excited to support Betting Hero in using that expertise to drive even greater growth.”

Shares in FansUnite Entertainment Inc (TOR:FANS) closed unchanged at $0.07 per share in Toronto Friday.