iGaming supplier Spiffbet plans to move into the B2C realm by marging with the company behind the Metal Casino brand, Vrtcl Gaming Group.
Vrtcl’s board of directors is suggesting this merger is already supported by 51.2% of the operator’s shareholders and will see Metal Casino become Spiffbet’s subsidiary.
The shareholders will be able to…
…exchange each share in Metal Casino for six newly-issued shared in Spiffbet through a non-cash issue.
The press release states that, “upon full acceptance of the offer, a maximum of 21,230,954 Spiffbet shares will be issued, amounting to a stake of just over 30% in the business, and valued at approximately 1.0m.”
The supplier wants to add the B2C sector to the B2B core of their business as it would allow for further growth and will create opportunities for multiple synergies.
It would also reduce their overhead costs and develop their exclusive content.
Says Spiffbet’s CEO Henrik Svensson:
“This is a strategically important and major step for Spiffbet as we enter the operator market and can also participate in the consolidation within the operator segment. Metal Casino will be a new leg of Spiffbet's business, which we hope can grow significantly over time.”
He added that, for everyone at the company, this will be a positive addition. Developing and customizing products in a direct collaboration with an operator within the same group of companies will be a great asset to the team.
Metal Casino’s co-founder, Michael Freudenthal remarked that this merger would provide the benefits of a stock exchange listing to the operator, as Spiffbet is listed on Nasdaq First North.
“It has strengthened us tremendously in the ongoing industry consolidation where we intend to be a driving force. At the same time, we have access to financing in the capital market, which is important if we want to consolidate and strengthen our brand in existing markets while also being able to establish ourselves in new markets,” said Freudenthal
The online venue was launched in 2017 and offers online casino games and sports betting in Seden, the UK, Germany and Finland. Its brand ambassador is Black Sabbath singer Ozzy Osbourne.
Spiffbet holds a B2B license in Curacao and is currently applying for the Malta Gaming Authority permit.
Source:
“Spiffbet proposes Metal Casino merger”, igamingbusiness.com, March 20th 2020