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PointBet Holdings (PBH) $9.73

Spent much of the last week in a trading halt as the wagering business launched a $400m equity raise. The raise comes in a few sections – the first being a $215.1m placement to institutions at $10/sh. The second, completed yesterday, was the $81m institutional entitlement offer with 78% of eligible holders taking up their rights at $8/sh, with the remainder sold off in a shortfall bookbuild at $10/sh. The final leg is the retail entitlement offer with shareholders given the chance to pick up another PBH share at $8 for each 9 held prior to the trading halt. To ensure the full clip is filled, any retail holders can forego the new shares and will collect the difference between the $8 raise price and the final price of the shortfall bookbuild in cash.

We intend to take our entitlement up in this portfolio before the 20th August closing date, which would take the weighting up to 6.67%. PBH was out with a strong 4th quarter announcement last week ahead of the raise. US growth is taking off with active customers up more than 600% compared to 4Q 2020. The raise gives them plenty of room in the war chest to continue the ramp up in the US as more states relax gambling laws. The big raise will likely weigh on the stock near term but the blue sky opportunity is significant.

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MM is bullish PBH
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PointsBet (PBH)
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