Shares of sportsbook operator and online marketing company for the gaming industry B90 Holdings (LON: B90) are one of London's biggest movers on Tuesday after the company said it has raised £1.1 million through a subscription of 7.79 million new ordinary shares.
The subscription was with certain existing and new investors for 14p per share.
The proceeds of the subscription will be used towards settling the majority of the group's overdue creditors, with the company’s directors believing that they are now in a more secure financial position whereby it can focus on expanding and growing its operations.
The AIM-listed company also announced it has finalised an affiliate agreement with Oddsen to grow its revenues in Norway.
Oddsen.nu now has the exclusive rights to market Bet90.com in the Norwegian market. Oddsen will receive an upfront affiliate fee of €200,000, payable via the issue of 3,500,000 new ordinary shares.
Another affiliate agreement was also struck with existing affiliate partner E2 to grow its revenues in various countries. E2 will receive an upfront affiliate fee of €100,000, payable via the issue of 1.8 million new ordinary shares
“The signing of these affiliate deals with Oddsen and E2 reflects the Board's strategy to invest in marketing and to expand the geographic focus of Bet90. The proceeds from this subscription will put the group on a more stable financial footing and enable the activation of additional marketing initiatives to drive revenue,” said Paul Duffen, Executive Chairman of B90.
Shares of B90 are trading 28.5% higher at 18p following the news.
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