Playtech Injects NorthStar Gaming with CAD$12.25m Fund
Global iGaming software company Playtech has invested CAD$12.25m (£7.7m/€8.7m/US$9.3m) in Ontario-based online casino and sportsbook operator NorthStar Gaming.
The investment, made by a convertible debenture, will convert into equity and warrants when NorthStar’s proposed takeover by Baden Resources Inc is completed. In June 2022, Baden Resources signed a non-binding letter of intent (LOI) with NorthStar Gaming to take over its parent media company.
After the deal is completed, Playtech will own an estimated 16% of the issued and outstanding common shares belonging to NorthStar. It will also hold warrants that would allow it to increase its stake in the company to over 20%.
Playtech’s unparalleled expertise in the gaming industry will help NorthStar accelerate our growth and rapidly expand our user base. With the additional investment, we look forward to expanding our market share across Ontario and further enhancing our premium, content-driven experience for consumers.
As a result of the funding, Playtech’s CFO, Chris McGinnis, will join the board of directors as a Non-Executive Director, representing Playtech in the listed entity.
Playtech and NorthStar have also agreed to extend their current software and services partnership by ten years. The two brands first signed a deal in December 2021.
We are excited to expand our partnership with NorthStar and build on the early success of our existing software and services agreement. Playtech has extensive experience of what it takes to succeed in newly regulated markets, as demonstrated by the group’s strategic agreements in other markets across the Americas.
Earlier this month, Playtech debuted in the US retail sports betting market via its partnership with Gold Rush Gaming.
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