Betting technology firm Sportech, active in the state of Connecticut with pari-mutuel wagering, has confirmed that it will cease trading on the London Stock Exchange in favor of trading on AIM, subject to voting at the company’s AGM on June 29.
The move, it said, is more suitable for companies such as Sportech with a market capitalization of less than $142m.
In a statement to shareholders, the firm said: “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.”
Chairman Giles Vardy, updating shareholders, wrote: “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 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, Venues and Lottery.
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 omni-channel 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.
The Lottery business provides draw-based lottery platforms and services. In 2019, the group acquired Lot.to systems, an iLottery, CRM, and games management platform, to complement its successful draw-based games.
Sportech also outlined its planned use of proceeds from the sale of Bump 50:50 and the Global Tote business, saying: “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 ($51.2m) .
“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 which are aligned with group strategy.