REG - B90 Holdings PLC - £0.5 million Raise and Trading Update

B90 HoldingsAnnouncement

06/02/2023 07:00

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RNS Number : 9465O  B90 Holdings PLC  06 February 2023

For release: 6 February 2023

 

B90 Holdings plc

("B90" or the "Company")

 

B90 raises a further £0.5 million and Provides Trading Update

 

B90 Holdings (AIM: B90), the online marketing and operating company for the
gaming industry, today announces that it has raised a further £500,000
through subscriptions for convertible loan notes ("Loan Notes") by existing
investors in the Company.

 

The net proceeds raised will be used to develop the growth initiatives of the
Company and for general working capital purposes.

 

In addition, the Company has agreed to issue a further £112,500 Loan Notes to
a key marketing partner in lieu of cash settlement due for services.

 

The Loan Notes have a term of three years from issue and are convertible no
earlier than 1 January 2024, at the request of the Loan Note holder, at a 10%
discount to the volume weighted average price for the five trading days prior
to the conversion notice.  The Loan Notes are convertible, at the discretion
of the Company, at any time and on the same terms.  The Loan Notes carry a
coupon of 10% per annum, which shall accrue and be paid upon redemption or
conversion.

 

Trading Update

 

B90 is also pleased to provide the following update in relation to the year
ended 31 December 2022.

 

The business continued to perform in line with management expectations during
the second half of FY2022.  As a result, the Board expects that revenues for
FY 2022 will be in marginally in excess of €2.1 million, in line with market
expectations. The Company expects to report a reduced loss for FY2022 compared
to FY 2021, with an increase in administrative expenses, principally due to
investment in marketing and operations, which together with exceptional costs
incurred in connection with the EGM requisition, is expected to result in an
operating loss of approximately €3.0 million.

 

Ronny Breivik, Interim Executive Chairman of B90 commented:

 

"We enter 2023 in a much improved position.  Our recent fundraisings have
underlined investors' belief that we can execute on a dual organic growth and
buy-and build-strategy and have also provided an improved balance sheet and
much needed working capital.  Management is now focused on accelerating this
programme of activity and we look forward to strengthening our operational
team to help us achieve this.

 

"Having assessed immediate priorities at the end of 2022 we have now
strengthened the balance sheet; improved our customer relations management;
our customer retention programmes; affiliate strategies; and our direct
marketing activities.  We continue to focus on Latin America and the
additional capital raised will help fund our increased operations in the
region to improve retention rates and produce an improved spend per
customer.  We are grateful to shareholders for their continuing support.

 

"Our focus for 2023 is to accelerate revenue growth by utilising focused
investment in marketing to improve site traffic and subsequently generate
higher gaming volumes.  In tandem, we are committed to reducing operating
losses and providing investors with more visibility on the path to cash
generation.  We also are actively seeking further value accretive
acquisitions.

 

"Overall, we are increasingly confident about our future prospects. We look
forward to giving a more detailed update at the time of the full year
results."

 

The information communicated in this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended.

 

 

For further information please contact:

 

B90 Holdings
plc
+44 (0)1624 605 764

 

Ronny Breivik, Interim Executive Chairman

Marcel Noordeloos, Chief Financial Officer

 

Strand Hanson Limited (Nominated Adviser)        +44 (0)20 7409 3494

James Harris / Richard Johnson / Rob Patrick

 

Zeus Capital
(Broker)
+44 (0)20 3829 5000

Louisa Waddell / Tim Dainton

 

Belvedere (Financial PR &
IR)                                   +44
(0)20 3008 6864

John West / Llewellyn Angus

 

About B90 Holdings plc

B90 Holdings plc is a group of companies focused on the operation of its own
online Sportsbook and Casino product as well as marketing activities for other
online gaming companies.

 

 

Website: www.b90holdings.com (http://www.b90holdings.com)

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