NorthStar Gaming is accelerating plans for expansion across Canada with the acquisition of Slapshot Media, which provides managed services to igaming site Spreads.ca.
NorthStar has agreed to acquire all of Slapshot’s issues and outstanding shares for C$1.8m ($1.32m), payable in 3,272,727 common shares of NorthStar at C$0.55 ($0.40) per share.
Owned and operated by the Abenaki Council of Wolinak, Spreads.ca will be used as a vehicle to grow the NorthStar Bets brand – which launched last August and will remain the firm’s only online casino and sportsbook in Ontario – nationally, adding to the strategic investment it secured from Playtech in February.
As such, Spreads.ca will not be made available in Canada’s most populous province.
Commenting on the deal, NorthStar CEO and Founding Partner Michael Moskowitz said: “The acquisition of Slapshot expands our ability to enter new markets faster as we look to introduce NorthStar Bets to consumers across the country.
“We are hyper focused on growing the reach of NorthStar and this strategic acquisition and partnership further positions NorthStar for rapid growth into new markets within Canada.”
This latest development follows yesterday’s announcement that NorthStar entered into an agreement with Blue Sky Trading & Consulting last month to benefit from its financial advisory services.
Under the terms of the deal, Blue Sky Trading & Consulting has agreed to advise NorthStar on capital markets, including capital raising and mergers and acquisitions (M&A), and appears to have made its first significant involvement.
NorthStar hopes to close its acquisition of Slapshot on or before May 5, but must first gain approval from the TSX-V, where it recently started trading after delisting its shares on the Canadian Securities Exchange.
Slapshot’s owners, meanwhile, are entitled to a separate earn-out of up to C$500,000 ($367,137.50) based on its revenue performance for the 12-month period following the closing.