Northstar Gaming Holdings Inc. has announced initial short-term financing of $3 million via an unsecured interest-bearing promissory note to Playtech pls. The money will be used to fund the company’s continued growth and for “general corporate purposes.”
One of those areas for potential growth is Alberta, which is expected to open up to competition and other igaming operators soon.
“We welcome the opportunity to strengthen our balance sheet as we continue to advance the fundamentals of our business by delivering above-market growth,” said Michael Moskowitz, Chair and CEO of NorthStar, in a statement.
In August, NorthStar Gaming Holdings reported growth for both Q2 and the first six months of fiscal 2024. For the second quarter (ended June 30), the company reported revenue of $7.5 million CAD in revenue (including managed services fees, net of bonuses, promotional costs and free bets), a 61 percent increase from Q2 2023.
Total wagers at Northstarbets.ca were $225.5 million in Q2, a 41 percent increase year-over-year, and gross margin was $3.2 million in Q2 2024, a 69 percent year-over-year increase. Active players grew 48 percent, along with a 12 percent decline in cost per acquisition of a customer.
The note will bear interest of 8 percent per annum, payable in arrears at maturity. The note is due and payable April 25, 2025, and “the date on which the company or any of its subsidiaries completes additional financing transactions with aggregate gross proceeds of at least $10 million, subject to certain exceptions.”
During an earnings call in August, Moskowitz said Alberta is a market they are keeping an eye on, referring to it as “very attractive,” pointing out that he expects the western province to take a similar approach in their rollout like Ontario did.
NorthStar owns and operates NorthStar Bets, a casino and sportsbook platform.
