FansUnite Announces Renewal of Normal Course Issuer Bid
Vancouver, British Columbia–(Newsfile Corp. – June 16, 2023) – FansUnite Entertainment Inc. (TSX: FANS) (OTCQB: FUNFF) (“FansUnite” or the “Company“) is pleased to announce it has received approval from the Toronto Stock Exchange (the “TSX“) to renew its normal course issuer bid (the “NCIB“) for a 12-month period.
Under the terms of the renewed NCIB, FansUnite may purchase up to 17,898,515 common shares of the Company (the “Shares“), representing 5% of the 357,970,305 issued and outstanding Shares as of June 14, 2023. The NCIB will commence on June 20, 2023, (the “Commencement Date“) and may extend for a period of up to 12 months from the Commencement Date.
The number of Shares to be purchased per day, other than purchases made pursuant to the block purchase exception, will be limited to 57,910 Shares, which represents 25% of the average daily trading volume of 231,642 Shares on the TSX for the six months ending May 31, 2023. The Company intends to acquire 7,000,000 shares under the NCIB, representing approximately 1.96% of the issued and outstanding Shares. The actual number of Shares purchased under the NCIB and the timing of the purchases will depend on market conditions and cash available, and shall be in compliance with TSX rules and policies, and National Instrument 62-104 Take-Over Bids and Issuer Bids. Purchases will be made on the open market through the facilities of TSX, other designated exchanges and/or alternative trading systems in Canada and the United States. All purchases by the Company under the NCIB will be made through Research Capital Corporation, as broker dealer of the Company, using FansUnite’s existing cash resources, and all Shares purchased under the NCIB will be cancelled.
The Company proposes to renew the NCIB because it believes that the market price of the Shares may not, from time to time, fully reflect their value and accordingly, the purchase of the Shares would be in the best interest of the Company as well as an attractive and appropriate use of available funds. It is expected that any purchases made by the Company could also enhance value and liquidity for its shareholders.
Under its prior NCIB, which commenced on June 15, 2022 and ended on June 14, 2023, FansUnite obtained approval to purchase up to a total of 10,000,000 Shares, of which the Company purchased 552,000 Shares at a volume weighted average price of $0.13 per Share. Purchases were made on the open market through the facilities of the TSX, other designated exchanges and/or alternative trading systems in Canada and the United States.
About FansUnite Entertainment Inc.
FansUnite is a global sports entertainment and gaming company. Our business is focused on the regulated and lawful sports betting affiliate market which includes customer acquisition, retention, support and reactivation. FansUnite has established itself as a leader in the North American affiliate market through its subsidiary American Affiliate Co LLC (“AmAff” or “American Affiliate”). AmAff is a North American omni-channel customer acquisition company, covering both retail and digital customer activation for sportsbooks, casinos, poker and fantasy sports platforms.
For further information, please contact:
Prit Singh, Investor Relations at FansUnite
ir@fansunite.com
(905) 510-7636
FORWARD-LOOKING INFORMATION:
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that FansUnite anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, ”scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or ”will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking statements in this news release include, but are not limited to: the purchase of Shares by the Company under the NCIB; the availability of cash for repurchases of outstanding Shares under the NCIB; compliance of third parties with their contractual obligations related to the NCIB; the existence of alternative uses for the Company’s cash resources which may be superior to effecting repurchases under the NCIB; compliance with applicable laws and regulations pertaining to the NCIB; failure to realize the anticipated benefits of the NCIB; the Company’s strategic objectives, goals, growth strategy and focus including growing revenue and free cash flow through improved operations, accretive acquisitions, internal expansion, integrating and innovating operations and revenue management.
Forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, expectations and assumptions concerning: interest and foreign exchange rates; capital efficiencies, cost saving and synergies; growth and growth rates; the success in the online gambling and sports betting industry; the regulatory environment applicable to online gambling and sports betting; the technological infrastructure and support needed to host the Company’s online gambling and sports betting platforms and applications; and the Company’s growth plan. While FansUnite considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; risks associated with the regulatory environments in the jurisdictions the Company operates in; technology-related risks that could adversely affect the Company’s ability to operate its online gambling and sports betting platforms and applications, risks related to the novel coronavirus (COVID-19) global pandemic and any effects it might have on the Company’s business thereto. Readers are cautioned that the foregoing list is not exhaustive. Additional information regarding the risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in the Company’s Annual Information Form dated March 30, 2023 as filed on its issuer profile on SEDAR at www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this news release. FansUnite disclaims and does not undertake to update or revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/170248