Rivalry has confirmed that it has secured C$14m in funding in the form of convertible debentures to help it seize new opportunities in 2024.
The millennial and Gen-Z-focused operator secured the funds through an existing institutional shareholder who has given the company a series of convertible debentures that can be turned into stock equity upon maturity.
Under the terms, each convertible debenture is made up of a $1000 principal amount of 10% convertible debentures in Rivalry, set to mature in three years. The shareholder, who remains anonymous at the time of writing, will have the option to convert the debentures into equity upon the maturity date – November 14, 2027.
Should this happen, the conversion price has been set at $1.40 per subordinate voting share.
This move allows Rivalry to access more capital as it aims to grow its business throughout 2024. The firm has recently launched a new casino platform, a magazine and is still operating its esports betting platform.
Rivalry expects to be a profitable business in H1 2024 and seeks additional liquidity to ramp up its marketing efforts and seek geographic expansion.
“We are very pleased to receive the support of a long-standing institutional shareholder of Rivalry with this investment,” said Steven Salz, Co-Founder and CEO of Rivalry.
“Rivalry’s unique product mix and position in the marketplace has brought the business to the inflection point it’s reached today. We’re deeply confident in the underlying trends the business is showing and maintain our expectation to achieve profitability in H1 2024.
“Strengthening our balance sheet positions the company to maximize the opportunity in front of us. The capital will enable Rivalry to accelerate the development and release of new products, expand marketing efforts, and extend into new geographies and verticals, setting us on a path where we can pursue growth and profitability at the same time.”