NorthStar Gaming, the Canadian online casino and sportsbook operator from Toronto, has announced that it has entered into a subscription agreement with Playtech, one of the world’s largest suppliers of technology, services and content for the online casino industry.
The agreement is dated September 21, 2023, and it stipulates that Playtech, already an investor in NorthStar Gaming, agreed to purchase further securities worth 10 million Canadian dollars.
In order to complete this agreement, NorthStar Gaming will have to issue a number of 28.5 million “units” at a price of 0.175 Canadian dollars per unit. Each of these units contain a common share of the company, along with a half warrant to acquire common shares at 0.36 dollars and another half warrant to acquire shares at 0.40 dollars.
Both warrants are available for the next five years, while a three-year 8% unsecured convertible debenture worth 5 million Canadian dollars will convert into common shares at the price of 20 cents per share with interest payable in kind.
This investment will be used by NorthStar Gaming to expand its operations in the rest of Canada, especially after the company managed to acquire Slapshot Media, an iGaming marketing and managed services company. Some of the money will be used as general working capital for the company, with the proposed financing expected to be fully completed by the end of October 2023.