Business
Strategic investment in NorthStar Gaming Inc
Strategic investment in NorthStar Gaming Inc.
About this update from Playtech Plc
[{"type":"text","content":"\n \n \n \n Playtech plc\n \n \n \n \n ('Playtech' or the 'Company')\n \n \n \n \n Strategic investment in NorthStar Gaming Inc\n \n \n \n Playtech plc (LSE: PTEC), the leading platform, content and services provider in the online gambling industry, is pleased to announce a strategic investment in NorthStar Gaming Inc. (\"NorthStar\"), the Ontario-based online casino and sportsbook operator. Playtech has also agreed an extension of its commercial arrangements with NorthStar.\n \n \n The investment of C$12.25 million (€8.4 million) has been made by way of a convertible debenture that will convert into equity and warrants\n in connection with NorthStar's proposed reverse takeover (the \"RTO\") of Baden Resources Inc. Subject to completion of the RTO which will result in the listed entity moving its listing to the Canadian TSX Venture Exchange (\"TSXV\"), Playtech will own approximately 16% of the issued and outstanding common shares of the TSXV-listed entity\n , and will also hold warrants giving it the right to further increase its stake potentially beyond 20% of the issued\n and outstanding\n common shares.\n Chris McGinnis, Playtech's CFO, will join the Board of Directors of the listed entity as a Non-Executive Director, acting as Playtech's representative.\n \n \n Playtech entered into a software and services agreement with NorthStar in December 2021, providing NorthStar with a suite of technology solutions, including the IMS platform, Casino, Live Casino, Poker and Bingo. Playtech and NorthStar have agreed a 10-year extension to the term of that agreement, as well as the right to expand the agreement beyond Ontario and across the entire Canadian market. Playtech will also provide strategic advice to NorthStar, most notably in online operations, managed services and market expansion.\n \n \n The funds raised by NorthStar will be used to support the growth of NorthStar's footprint across Ontario and future Canadian markets, ensuring it is well positioned to become a market leader in the attractive Canadian market.\n \n \n \n Mor Weizer, Playtech, CEO, said:\n \n \"We are excited to expand our partnership with NorthStar and build on the early success of our existing software and services agreement. Playtech has extensive experience of what it takes to succeed in newly regulated markets, as demonstrated by the Group's strategic a...