On Wednesday, at its annual and special shareholders’ meeting, Score Media and Gaming Inc. won shareholder support for a stock consolidation.
In preparation for a U.S. stock offering, the Toronto-based sports media and online betting firm sought permission to merge shares, as it seeks exposure to a larger consumer base and deeper capital markets, reports Bloomberg. A minimum per-share price for listings is required by some exchanges.
Top performer in Roundhill Sports Betting & iGaming ETF (BETZ)
This year, the stock of Score Media is up about 230 percent, making it the top performer in the Roundhill Sports Betting & iGaming ETF (BETZ) and taking the market capitalisation of the firm to approximately C$ 2.2 billion ($ 1.7 billion).
A main factor for Score Media’s shares has been domestic prospects for sports betting legalisation, but its U.S. betting app, theScore, has also beaten the expectations of some analysts.
According to Eight Capital analyst Suthan Sukumar, who has a purchase rating on the stock, a U.S. listing will allow investors to compare Score Media against its U.S. rivals. Sukumar says another “lucrative” trigger is the company’s plans to launch an online casino product this year.
Last fall, Canadian Justice Minister David Lametti announced legislation to legalise single-event sports betting in Canada, signalling a change in policy for the Liberal government of Prime Minister Justin Trudeau. A second reading is scheduled for Feb. 19 of the law, Bill C-13.