TheScore files for US IPO on Nasdaq


Canadian digital media and sports betting company theScore has filed for an initial public offering (IPO) on the United States-based Nasdaq.

The Toronto-based company, which is already publicly traded on the Toronto Stock Exchange (TSX), plans to sell 5,000,000 Class A shares at a yet-to-be-determined price. theScore plans to use the proceeds to fund working capital and expand theScore Bet’s operations in the North American sports betting market.

theScore plans to use the proceeds to expand its mobile sports betting app’s operations across North America.

“theScore is uniquely positioned, both in the US and Canada, as the only truly integrated mobile media and gaming company,” said John Levy, the founder and CEO of theScore, following the release of the company’s Q1 2021 financial results. “Based on the continued development of theScore and the growth of the sports betting industry across North America, in our view it is timely to consider a listing on a US stock exchange.”

Levy added that the company believes access to the US capital markets would provide “compelling benefits” for theScore and its shareholders.

theScore provides sports news and statistics to users via its mobile app, which has approximately four million monthly users. theScore Bet, the company’s sports betting app, is currently available in four US states: Colorado, New Jersey, Iowa, Indiana.

“The offering will be priced in the context of the market with terms, including price per share, to be determined at the time of entering into an underwriting agreement with the underwriters,” the company wrote in a statement. According to The Globe and Mail, the new offering will raise approximately $180 million USD.

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The proposed offering remains contingent upon the completion of an underwriting agreement, including customary closing conditions.

Q1 2021 was theScore’s “best-ever” quarter for media revenue, according to Levy. This growth was driven by direct advertising, as the company generated $10.6 million CAD, compared to $9.2 million during the same period last year. The company also had a record period for its esports operations, and significant follower growth on its social media sports pages across Twitter, Facebook, Instagram, and TikTok.

The sports media and betting company plans to use the new funding to support the continued growth and expansion of theScore Bet in the US and Canada, “by supporting the multi-jurisdiction deployment and operation of theScore Bet and user acquisition and retention in jurisdictions where theScore is, or will be, operating.”

“While still in the early stages of this fast-growing industry, we are steadily strengthening our expanding footprint in the North American sports betting market,” said Levy.

“We’re also diligently preparing for the enormous opportunity in Canada ahead of the anticipated creation of a fully-legalized and regulated sports betting and iGaming market in Ontario,” he added.

In December, theScore raised approximately $46 million through a bought deal equity offering via a short-form prospectus.

The company has positioned itself to capitalize on the potential legalization of single event sports betting in Canada, which is currently illegal.

The Government of Canada is currently considering changing this through Bill C-218, The Safe and Regulated Sports Betting Act. The bill recently passed its second reading in the House of Commons by a vote of 303-15, and has been referred to the Commons justice committee.

Josh Scott

Josh Scott

Josh Scott is a BetaKit reporter focused on telling in-depth Canadian tech stories and breaking news. His coverage is more complete than his moustache. He was also the winner of SABEW Canada’s 2023 Jeff Sanford Best Young Journalist award.

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