TheScore initiates reverse stock split
Move designed to prepare operator for second stock exchange listing in US as well as Canada
TheScore has issued a reverse stock split to consolidate outstanding shares to support plans for a dual-listing on a US stock exchange.
Outstanding shares will be consolidated in a one-for-ten reverse split, meaning one new Class A Share will account for every 10 currently outstanding.
Although theScore hasn’t revealed which additional exchange it expects to list on, the Toronto-listed business said the share consolidation is a “significant step that positions it for the potential US listing it has been considering.”
TheScore first discussed a dual-listing during its Q1 2021 earnings report as a means to tap into US institutional investors and gain more exposure among equity analysts.
“We believe access to the US capital market would provide compelling benefits to theScore and our investor base,” CFO Alvin Lobo said at the time.
According to Investopedia, reverse stock splits are a way to draw more attention from analysts and influential investors.
“This share consolidation is a significant step that positions us for the potential US stock exchange listing we have been considering,” theScore CEO John Levy said.
“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,” he added.
A total of 43,442,568 Class A shares will remain once the consolidation is completed.
The operator recorded a significant uptick in handle of 535% in its latest financial results for the three months to November 30 2020, on increased engagement across the company’s media and betting platforms.