FansUnite (FANS.TO) is a sports and entertainment company, focusing on technology related to regulated and lawful online sports betting, esports betting, casino and fantasy. Their mission is to be a leader in the gaming industry by providing their partners and players the industry’s most versatile and vertically integrated platforms with a portfolio of unique products and a focus on esports, sports betting, casino and the next generation of bettors.
Today, the company announced it has sold all of its shares in its wholly owned subsidiary McBookie LTD., a Scottish private limited company.
McBookie has been a leading online sportsbook in Scotland for over a decade. McBookie has been operating in the UK market since 2009 and is recognized for its sports betting, casino, and virtual sports offerings. At the time of acquisition, McBookie boasted approximately 10,000 active members and handled a total of CAD$340 million in betting since its inception. Additionally, in the last two years, McBookie has taken over CAD$100 million in betting volume onto its platform. McBookie has delivered three consecutive years of revenue growth. Under FansUnite’s ownership, McBookie achieved a gross win increase of 451% and a turnover increase of 305%.
FansUnite acquired McBookie in March 2020 for $2.2 million CDN. Three years later, FansUnite will recognize a significant profit, selling McBookie for more than $5 million CDN in cash, over 7x their record 2022 EBITDA.
For a breakdown on this deal and what it means for investors, check out Chris Parry’s new article on FansUnite setting up the big trade of the Summer.
At time of writing, the stock is flat on the day and is sitting at a market cap around $23.55 million.
The stock is currently sitting at a major support zone, very close to previous record lows printed at $0.06. You can see that FansUnite actually popped from this support at the beginning of the year. The pop provided a return of over 100% from support at $0.07 to highs just above $0.15.
In recent days, buyers have been entering at this zone as can be seen by large wick and full bodied green candles and generally remaining above this support. The stock really needs a catalyst for a rally from here and recent earnings did not do it. Can the sale of McBookie spark a run from here?
Going forward, a long range has developed and technical traders should watch for a close above $0.075 to confirm a breakout and a stronger bounce from this major support zone.
