The company announced a C$2.4m placing to fund the B2B launch and working capital until breakeven. The placing was originally announced to be at C$0.12 but given the horrendous markets, particularly in the micro-cap space with limited liquidity, and the Q1 marketing costs spooking investors, the placing is now being done at C$0.04 with warrants at C$0.08. This is obviously very disappointing dilution with the business being effectively valued on its cash balance with no value attribute to the growing business and the potential of the B2B product
I have been in contact with the CEO, Thomas Rosander, and he continues to believe that the B2C business will be breakeven in 2-3 months and remains very bullish on the potential for the new B2B business. He has provided me with an updated presentation deck – please email me (email@example.com) if you would like to see it.
The deck gives a high level overview of the B2B product, which allows for real time, high frequency betting on live sports with a betting market overlay synchronised to the live broadcast. This is patent pending proprietary technology. As an example, during a live football game the overlay will pop up with a bet for “Will Chelsea score in injury time, yes or no?”. During a basketball game the overlay will offer a bet of “Will X team score 25 points or more in the next quarter”.
The potential of this business appears enormous with the strategic B2B partners to be announced in Q4. However, with cash being carefully managed alongside this relatively small raise, this investment idea remains a ‘bet on the jockey’ that business will reach profitability as expected and the new product will be successful as the CEO believes.