BetMakers Technology - Base Case Valuation Increases to $281.1m Post Raise

BetMakers Technology Group (ASX:BET) is a B2B software services business focussed on servicing the wagering market and race operators globally. BetMakers is not a gaming company, it is a technology company that is facilitating commercial opportunities for racing authorities, rights holders, and corporate bookmakers while providing an improved racing experience for punters. The company has announced it has secured firm commitments from institutions and sophisticated investors for a $35m placement at $0.37/share, which represented an 8.6% discount to the previous close. The company’s largest shareholder Tekkorp Capital was a cornerstone investor in the placement. BET plans to use to proceeds to accelerate both organic and inorganic growth opportunities including its expansion into the US. The placement comes on the heels of the recently announced a five-year on course fixed odds deal with Monmouth Park racetrack in New Jersey in which BET will manage fixed odds terminals and kiosks on a year-round basis. We have incorporated the placement in our forecasts and it has lifted our base case valuation to $281.1m (previously $246.1m) or $0.39/share (unchanged) on a fully diluted basis. On the current share count, the base case valuation is $0.49/share.