Kings Entertainment shareholders have given overwhelming support for the company’s proposed merger with Sports Venture Holdings, the parent company of the Bet99 sportsbook brand.
Held yesterday, shareholders of the lottery and gaming company voted on a whole variety of business subjects to set the corporate agenda for the months ahead, but the most significant movement will be the closing of the Bet99 deal, which has been mooted for much of the year.
It has been a whirlwind year for Kings, which listed on the Canadian Securities Exchange in late January, as it aimed to enter the online casino space in search of higher margins, as well as consolidating its online lottery operations.
Also eyeing sportsbook business, the Bet99 acquisition was first confirmed in May, as CEO Steve Budin lauded the combination of two ‘strong brands’ as it aims to enter the emerging sports betting industry in Canada.
The completion of the Bet99 deal would mark a significant milestone for Kings, not just operationally, but for its brand, too.
In September, the firm announced its intentions to rebrand to ‘Interactive Entertainment Group, should the merger be finalised, reflecting its wider scope as a multi-vertical brand.
Following the shareholder approval, Budin commented: “The near-unanimous approval of our shareholders at the Meeting shows our shareholders’ continued trust and support for management and our business strategy.
“The approvals received today mark an important step towards the completion of our previously announced Business Combination.
“With this approval in place, we intend to proceed with financing to ensure that Interactive Entertainment Group, the entity resulting from the Business Combination, is well-funded and would hope to close the Business Combination shortly after the financing.”
Other approvals secured in the shareholder meeting include reappointing Baker Tilly WM LLP as the Company’s auditors for the ensuing year, as well as several decisions on the makeup of the boardroom pre- and post-merger.
Firstly, the board of directors will be fixed at six members, with Steven Budin, Kelvin Lee, Robin Godfrey, Laryssa Hetmanczuk, Joseph Krutel and Anthony Zelen all appointed as directors of the Company until completion of the Business Combination.
Post-combination, Jared Beber, Robin Godfrey, David Danziger, Kevin Kirby, Cory Levi and Hélène F. Fortin will sit on the board.
Jared Beber, CEO of Sports Venture Holdings, has already been confirmed as CEO of the merged company following the combination, whilst Budin will retain control of the Lottokings lottery brand and act as an advisor.
Kings also gave an update on the process of getting the joint venture listed on the CSE, revealing that whilst work is continuing to fulfil all requirements, there is no guarantee that the CSE will provide final approval.