Quarterly Activity Report
Sydney, July 15, 2020 AEST (ABN Newswire) - The Board of BetMakers Technology Group Ltd (
ASX:BET) (T07:FRA) is pleased to release its quarterly cash flow statement and quarterly activity report for the quarter ending 30 June 2020 ("Quarter").
Despite COVID-19 interruptions during this period, the Company had a successful Quarter:
o delivering increased receipts from customers of $2.397 million (+40% compared to Q3 FY20);
o delivering positive operational net cash flows; and
o successfully raising $35 million ($33.46 million after costs) to position the Company for growth.
The Company raised $35 million (before costs) in June 2020 by way of a placement to sophisticated and institutional investors at an issue price of $0.37 per new fully paid ordinary share. The placement was well supported by new investors and existing shareholders. The Company intends to use the funds to accelerate its growth, including expansion into the U.S market. In addition, the Company repaid $4 million in outstanding debt (the Company now has nil debt).
During the Quarter, the Company's wholly owned subsidiary, BetMakers DNA Pty Ltd, signed a 5-year agreement to manage Fixed Odds terminals and kiosks at Monmouth Park racetrack (as announced on 10 June 2020). The Board expects this to have a material impact on the Company's revenues, and also expects to invest approximately $250,000 in establishing the infrastructure at Monmouth park racetrack. During the Quarter, the Company spent approximately $75,000 on wagering hardware to be used on-course at the racetrack and an additional $149,000 on initiatives as part of its broader U.S. growth strategy.
As announced on 27 April 2020, BetMakers signed agreements with on-course Australian bookmakers Rob Waterhouse and Mark Sampieri to provide each of them with a new technology platform and Managed Trading Services for their online businesses. During the Quarter, robwaterhouse.com was launched, growing the BetMakers' stable of platform clients to three active bookmakers. The Company spent approximately $168,000 during the quarter on technology development and costs associated with its platform clients. The Company also has a strong pipeline of bookmakers looking to launch online and expects the number of active bookmakers powered and serviced by BetMakers to grow significantly.
The launch of the Managed Trading Services product during June delivered revenues in excess of the minimum $100,000 required for the Class A Performance Right issued Waterhouse VC to vest. Accordingly, the Class A Performance Right will convert into Options based on the total revenue generated under the agreements between the Waterhouse Group and the Company up to 30 June 2021. Please refer to the Notice of General Meeting release on 17 April 2020 for full terms of the Performance Rights.
The Company has continued to execute on key pillars of its strategy across platform deals, content distribution and U.S. expansion. The result of these efforts is reflected in the increased quarterly receipts from customers as well as the strong finish to the financial year, with in excess of $1 million of revenue reported for the month of June 2020 (unaudited).
The Board believes the Company is well resourced to continue its growth in the coming financial year. The Company paid Directors $111,000 for services during the Quarter. This included payment to the Chief Executive Officer for employment services as CEO.
During the Quarter the Company paid $88,000 in interest in relation to the deferred acquisition payments for the DynamicOdds and Global Betting Services businesses ($4.0million deferred, attracting 10% interest per annum, cash paid). No further interest payments are required in relation to this debt.
To view the full report, please visit:
https://abnnewswire.net/lnk/49Q508JJ
About Betmakers Technology Group Ltd
Betmakers Technology Group Ltd (ASX:BET) (OTCMKTS:TPBTF) is an ASX-listed holding company and a global provider of online wagering products and services to both wholesale and retail markets through its various wholly owned subsidiaries. The Company operates a retail wagering business, offering consumers wagering, fantasy tournament and content products and services.
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