Sportech, a pari-mutuel betting technology company engaged in Connecticut, has confirmed that it will cease trading on the London Stock Exchange in favour of trading on AIM, subject to voting at the company’s AGM on June 29.
It claims that the move is better suited to companies with a market capitalisation of less than $142 million, such as Sportech.
The company said in a message to shareholders: “Cancellation of the listing of the Ordinary Shares from the Official List 28 July 2021 becomes effective Admission of, and commencement of dealings in, the Ordinary Shares 28 July 2021 on AIM.”
Better suited market and environment
In a letter to shareholders, Chairman Giles Vardy wrote: “The Directors believe that AIM is a market and environment which is more suited to the company’s current size and strategy and AIM will offer greater flexibility with regard to corporate transactions and should therefore enable the company to agree and execute certain transactions more quickly and cost effectively than a company on the Official List.”
Sportech indicated that with the sale of the Bump 50:50 company, which was announced on February 1, 2021, and the projected sale of the Global Tote company, the group’s business will be divided into two divisions: Venues and Lottery.
Under an in perpetuity licence from the state of Connecticut, the Venues business offers lawful pari-mutuel betting on horseracing, greyhound racing, and Jai alai. It has the right to expand to up to 24 physical sites and offers omni-channel betting entertainment through 11 physical retail locations and an internet platform, www.mywinners.com.
The company also operates a separate “B2C” retail platform in the United States and offers venue management services to a variety of clients.
The lottery business offers platforms and services for draw-based lotteries. To supplement its successful draw-based games, the business purchased Lot.to systems, an iLottery, CRM, and games management platform, in 2019.
“The Board is reviewing its options regarding the specific application of the net cash proceeds arising from the previously announced sale of a freehold property and the disposals, which are expected to be, in aggregate, approximately £36.1m ($51.2m),” Sportech said.
“It is the Board’s current intention to return the majority of proceeds to the company’s shareholders when the Board considers it opportune to do so. The timing and extent of such a return of proceeds will take into account the Board’s view of the group’s organic and inorganic investment opportunities as well as its general ongoing capital requirements in light of plausible trading scenarios.”
The Board also stated that it will consider additional company investment opportunities as well as possible investments in carefully selected growth possibilities that are compatible with the group’s strategy.