Lottery and betting technology firm Sportech, active in the state of Connecticut with pari-mutuel wagering, has confirmed that it will discontinue trading on the London Stock Exchange in favour of trading on AIM, subject to voting at the company’s AGM on June 29.
Sportech noted that the move is more suitable for companies such as itself with a market capitalisation of less than £100m.
The firm said in a statement to shareholders: “Cancellation of the listing of the Ordinary Shares from the Official List 28 July 2021 becomes effective Admission of, and commencement of dealings in, the Ordinary Shares 28 July 2021 on AIM.”
Updating shareholders, Chairman Giles Vardy commented: “The Directors believe that AIM is a market and environment which is more suited to the company’s current size and strategy and AIM will offer greater flexibility with regard to corporate transactions and should therefore enable the company to agree and execute certain transactions more quickly and cost-effectively than a company on the Official List.”
By way of background, Sportech stated that following the completion of the sale of the Bump 50:50 business as announced on February 1, 2021, and the proposed sale of the Global Tote business, the group’s business will comprise two divisions, Lottery and Venues.
The Lottery business provides draw-based lottery platforms and services. In 2019, the group acquired Lotto systems, an ilottery, CRM, and games management platform, to complement its flourishing draw-based games.
The Venues business operates legal pari-mutuel betting on horseracing, greyhound racing and Jai alai under an in perpetuity license in the state of Connecticut. It offers omnichannel betting entertainment through 11 physical retail locations and an online platform, www.mywinners.com, and holds the right to expand to up to 24 physical locations.
The business also includes a separate US retail “B2C” platform and provides venue management services to a range of clients.
Sportech also described its planned use of proceeds from the sale of Bump 50:50 and the Global Tote business, stating: “The Board is reviewing its options regarding the specific application of the net cash proceeds arising from the previously announced sale of a freehold property and the disposals which are expected to be, in aggregate, approximately £36.1m.
“It is the Board’s current intention to return the majority of proceeds to the company’s shareholders when the Board considers it opportune to do so. The timing and extent of such a return of proceeds will take into account the Board’s view of the group’s organic and inorganic investment opportunities as well as its general ongoing capital requirements in light of plausible trading scenarios.”
The Board added that it will also evaluate further investment opportunities in its business and potential investments in carefully selected growth opportunities that are aligned with group strategy.
Back in April, Sportech’s CEO Richard McGuire stated the betting firm performed ‘better than initially forecast’ in its 2020 financial report and that he’s ‘encouraged by the resilience shown’ by the company.