Vancouver-based sports betting tech company FansUnite Entertainment has sold FansUS, its United States (US)-based subsidiary, back to its co-founders. The sale includes the operations of online gambling support company Betting Hero. As a result, FansUnite has delisted from the Toronto Stock Exchange (TSX).
FansUnite CEO Scott Burton
“I extend my sincere thanks to our shareholders for their support throughout this journey.”
FansUnite entered the sale agreement back in June, which outlined that 90 percent of the sale’s $37.5 million USD net proceeds would be distributed back to shareholders at approximately $0.07 CAD per share.
FansUnite had spent most of 2023 selling off its assets, including Chameleon Gaming and McBookie. CEO Scott Burton said in a statement that the FansUS sale agreement was a “substantial cash offer” for its “primary remaining asset” and came after a “long and thorough strategic evaluation.”
The purchasing party, Betting Hero co-founders Jai Maw and Jeremy Jakary, are backed by Vancouver-based compliance and cybersecurity company GeoComply. Maw and Jakary will take a 60 percent stake in the company with GeoComply taking the remaining 40.
“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,” FansUnite CEO Scott Burton said in a statement. “I extend my sincere thanks to our shareholders for their support throughout this journey.”
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FansUnite said it expects to retain net cash of approximately $500,000 CAD to “explore new business opportunities” for “the economic benefit of its shareholders” who are maintaining their interest.
FansUnite first acquired Betting Hero in November 2021 as part of the acquisition of parent company American Affiliate. At the time, FansUnite said the transaction was made in order to “secure a podium position in the US online betting opportunity.”
FansUnite had previously acquired Askott Entertainment in 2020, which had developed an iGaming betting platform with an esports, or competitive video gaming, focus. iGaming refers to activities such as sports betting, online casino betting, and poker betting.
Feature image courtesy Keenan Constance via Unsplash.