Score Media and Gaming Inc (TSXV: SCR), formerly known as theScore Inc, announced a massive financing today for the microcap, to the tune of $40 million. Coming in the form of a convertible debenture, the financing is being provided by Fengate Asset Management.
With current assets totaling only $27.70 million as of May 31, the financing is significant for Score Media. The convertible debenture, with an 8% per annum interest rate, comes with a term of five years and is unsecured, expiring August 31, 2024. The financing also comes with a slight premium, as the conversion feature is set at a price of $0.75 per share, with a forced conversion becoming eligible after August 31, 2021, provided the weighted price exceeds 125% of the conversion price for a period of 20 trading days.
“theScore is focused on becoming a leader in mobile sports gaming in North America and this strategic investment significantly enhances our ability to execute on this plan. Fengate is recognized as a highly respected and experienced investor across North America, with significant expertise in the gaming industry. They are the perfect strategic investment partner as we launch our best-in-class mobile sportsbook in the United States.”John Levy, Founder and CEO of theScore
The proposed financing is expected to close by September 5, 2019. It is believed that theScore will use the proceeds to further development of its mobile app focused on sports betting, and will enable the firm to focus on other jurisdictions in which it recently gained access to through its arrangement with Penn National Gaming.
theScore closed Friday’s session at $0.73 on the TSX Venture Exchange.
Information for this commentary and analysis was found via Sedar and theScore. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.