Here’s why the Betmakers (ASX:BET) share price is soaring

The Betmakers Technology Group Ltd (ASX:BET) share price is soaring after announcing partnership with Matt Tripp.
The post Here’s why the Betmakers (ASX:BET) share price is soaring appeared first on The Motley Fool Australia. –

sports fan betting on mobile phone, pointsbet share price

The Betmakers Technology Group Ltd (ASX: BET) share price is up around 15%. It has announced a partnership with Matt Tripp.

Betmakers is currently engaged with a number of parties to leverage the company’s technology and data platform and is looking forward to his assistance with those initiatives. The company is looking at potential opportunities in the US.

What is happening with Betmakers?

Betmakers Technology has contracted Mr Tripp to be a strategic advisor to the company where he will pursue ‘strategic deals’ and ‘transformational deals’ for Betmakers. Mr Tripp will be looking for opportunities in both Australia and internationally.

In per-share terms, strategic deals will be counted as ones that increase the company’s revenue by more than 10% on a pro forma basis and transformational deals will be counted as ones that increase revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) by more than 100% on pro forma basis. Mr Tripp will be rewarded with unquoted performance rights if he’s successful at bringing in strategic deals, as well as unquoted options and performance rights for transformational deals.

Mr Tripp has agreed to provide business to business wagering service opportunities exclusively to Betmakers.  

The execution of any deals will ultimately be up to the board.

Strategic placement

Subject to shareholder approval, Mr Tripp will also invest $25 million at a Bookmakers share price of $0.70 – almost 30% lower than the current price, though Betmakers said it was a 1.6% discount to the 15-day average share price.

Betmakers has also received firm commitments of $50 million from several existing, supportive institutions.

All of these funds will be used to accelerate growth, specifically for pursuing and executing strategic opportunities. After competing the capital raising and the transaction with Sportech, the company will have approximately $110 million in cash on hand.

Matt Tripp’s positive comments

Mr Tripp said:

BetMakers has cemented itself with a compelling proposition in the global racing wagering market. They have built a formidable team with a highly trusted brand and established a global footprint with a large customer base. I am delighted to invest into the company and take on a role to assist in growing the business at scale globally. I see clear opportunities to support that growth through inorganic and organic deals both in Australia and internationally.

CEO signs on for another 3 years

Betmakers also announced that the CEO, Todd Buckingham, will remain as the CEO until 30 June 2024 after signing a new 3-year commitment.

The chair of Betmakers, Nick Chan, spoke of the positive contribution that Mr Buckingham has had for the company:

Todd has delivered outstanding growth and opportunity for the company through his leadership and vision and the board is delighted to have secured his commitment under agreeable terms going forward.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Betmakers Technology Group Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Betmakers (ASX:BET) share price is soaring appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!