SharpLink Gaming Sells Fantasy Sports And Sports Game Development Business Units To RSports Interactive For $22.5M In An All-Cash Transaction
Portfolio Pulse from Benzinga Newsdesk
SharpLink Gaming Ltd. (SBET) sold its fantasy sports and sports game development units to RSports Interactive for $22.5 million in cash. The sale allows SharpLink to repay $14.9 million in debt, redeem a senior convertible debenture for $4.5 million, and become free of interest-bearing debt. The transaction is expected to reduce operating expenses, improve cash flow, strengthen the balance sheet, and help SharpLink regain Nasdaq compliance. COO Chris Nicholas resigned following the sale. The deal focuses SharpLink on performance marketing for sports betting and iGaming.
January 23, 2024 | 1:35 pm
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SharpLink Gaming Ltd. sold its fantasy sports and game development units, repaid debts, and is now focusing on performance marketing. The sale improves financial stability and aims for Nasdaq compliance.
The sale of non-core business units and the repayment of debt are positive financial developments that typically lead to a favorable market reaction. The focus on core operations and the potential for improved cash flow and Nasdaq compliance are likely to be viewed positively by investors in the short term.
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