SharpLink Gaming has recently made a significant move in the industry, selling its fantasy-sports and sports-game-development units for a whopping $22.5 million in cash. The company has decided to put the majority of the proceeds towards eliminating its interest-bearing debt.
In an announcement made on Tuesday, SharpLink revealed that it has sold these businesses to RSports Interactive, a privately held company. This transaction positions SharpLink as a dedicated performance-marketing company that specializes in serving the sports-betting and iGaming industries.
As part of the deal, approximately $14.9 million of the sale proceeds were used to completely repay all of SharpLink’s term loans and lines of credit. Additionally, roughly $4.5 million went towards redeeming a senior convertible debenture. These financial moves display SharpLink’s commitment to streamlining its operations and focusing on its core business.
Furthermore, SharpLink confirmed that most employees from the acquired units will be transitioning to RSports Interactive. However, Chris Nicholas, the former Chief Operating Officer and a board member, has resigned in connection with the sale.
By divesting itself of these units and reducing its debt, SharpLink anticipates achieving an improved total shareholder equity. This positive outcome is expected to help the company regain compliance with Nasdaq’s minimum continued listing requirements, a significant milestone for its future endeavors.
Trading in shares of SharpLink was temporarily halted before the market opened on Tuesday. The stock closed at $1.81 per share on Monday.