Score Media to Reverse Split Stock, Hoping to Land Major US Exchange Listing
Posted on: February 12, 2021, 07:55h.
Last updated on: February 12, 2021, 10:17h.
Score Media and Gaming Inc. (OTC:TSCRF), the Canadian sports wagering company also known as theScore, will reverse split its stock. The goal is gaining access to a major US bourse, such as Nasdaq or the New York Stock Exchange (NYSE).
Currently, theScore’s US-listed shares trade over-the-counter. That’s not necessarily a blemish, as it’s a strategy used by an array of foreign companies — including some well-known gaming operators. It’s a cost-effective avenue for bringing stock to the world’s largest economy, but it lacks the cache of a major exchange listing.
At a meeting earlier this week, Score Media’s board approved a 1-for-10 reverse split, meaning investors will receive one new share for every 10 currently held. As a result of the move, the price of the stock will rise, but the value of investors’ stakes and the operator’s market capitalization will not change.
The consolidation has taken effect on February 11, 2021, and the Class A Shares are expected to commence trading on the Toronto Stock Exchange on a post-consolidation basis beginning at the open of markets on February 18, 2021,” according to a statement issued by the company.
Prior to the equity consolidation, there were 434,425,695 Class A and 5,566 voting shares outstanding. Those figures will be 43,442,568 and 557, respectively, as a result of the reverse split.
theScore Stock Eyes the Big Leagues
Last September, Score Media announced the move of its equity from the Toronto Venture Exchange to the Toronto Stock Exchange (TSE), sparking a rally in the shares while signaling the operator’s US ambitions.
Should the company prove successful in moving theScore stock to a major exchange, the potential audience among institutional investors would grow in exponential fashion. In the US, many fund managers are can’t buy equities not trading on a well-known bourse or those trading below $5 a share — two boxes Score Media currently checks. Although the shares tripled over the past six months, the sports betting name trades below $4 in the US.
Another benefit of obtaining a Nasdaq or NYSE listing is that it increases a company’s access to capital. Banks are more apt to lend to companies with well-known exchange listings, and it’s easier for those firms to use stock as currency when needed.
Time Is Right
Score’s efforts to get in front of more US investors come at a time of rapid expansion in this sports wagering market — one in which the company’s ScoreBet mobile app is already live in Colorado, Indiana, and New Jersey.
“We believe a US listing would benefit our business and shareholders as we seek to further execute on the growing opportunity in the rapidly developing North American sports betting market,” said founder and CEO John Levy in the statement.
Should theScore stock land on a US equity board, it would also help the company procure financing, if needed, for expansion in its home market of Canada. Analysts believe the operator would be one of the biggest beneficiaries of the country scrapping its ban on single-game sports wagers.
Related News Articles
Related News Articles
August 17, 2021 — 7 Comments—
August 16, 2021 — 5 Comments—
August 16, 2021 — 4 Comments—