NorthStar Gaming has confirmed it has entered into an agreement with Blue Sky Trading & Consulting, which will provide financial advisory services to the Toronto-based firm.
Under the terms of the deal, Blue Sky will advise NorthStar on capital markets, including capital raising and mergers and acquisitions (M&A).
In return, Blue Sky will receive $55,000 per month, payable in the common shares of NorthStar, who will provide a maximum of one million common shares over the course of the initial six-month term, and a maximum of 166,666 in any one month.
Pricing of shares will be at least the discounted market price on the date the invoice for services is provided in arrears.
The agreement was made effective on Mar. 24, four days after NorthStar – which owns and operates NorthStar Bets, a made-in-Ontario casino and sportsbook gaming platform – officially opened the market to celebrate the beginning of its journey on the TSX Venture Exchange (TSX-V).
Earlier in the month, NorthStar officially finalized its reverse acquisition of Baden Resources and delisted its common shares on the Canadian Stock Exchange.
February also saw the completion of a $12.3m ‘strategic investment’ from Playtech to support growth of its footprint across Ontario and future Canadian markets.
Pertinently, this latest agreement with Blue Sky suggests that NorthStar is positioning itself for further investment and growth, perhaps imminently.
The six-month term may be terminated by either party upon ten days’ written notice, while it can also be extended by either party if there is a mutual agreement to continue.
The agreement is subject to the company’s filing requirements with the TSX.V and TSX.V approval.