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The deal is complete! Playtech and Canada’s North Star Gaming have settled on a strategic investment deal worth $9.3 million. In addition, North Star Gaming has agreed to extend its software and services deal for another 10 years. The first time the two companies entered into a partnership was in 2021, and the benefits have been mutual.
Being a convertible debenture-based investment, it will convert into equity and warrants according to the new proposed reverse takeover of Baden Resources Inc by NorthStar.
Playtech is expected to own approximately 16% of NorthStar’s issued and outstanding common shares. It will also own warrants that will boost its stakes to over 20%. But this can only happen once the reverse takeover is completed.
What the Deal Means to Playtech
With the new investment in place, Playtech’s chief financial officer Chris McGinnis will now join the board of directors of the listed company. He will serve as a representative of Playtech under the position of non-executive director.
The Chief Executive Officer (CEO) at Playtech, Mor Weizer, said:
“We are excited to expand our partnership with NorthStar and build on the early success of our existing software and services agreement.” “Playtech has extensive experience of what it takes to succeed in newly regulated markets, as demonstrated by the group’s strategic agreements in other markets across the Americas.
“We’ve been impressed by NorthStar’s unique business model and product offering, and look forward to supporting them in their mission to become the market-leading online gaming platform in Canada.”
Commenting on the new strategic investment deal, the CEO at NorthStar, Michael Moskowitz, said that it will help the game provider to expand its presence in the country.
“Playtech’s unparalleled expertise in the gaming industry will help NorthStar accelerate our growth and rapidly expand our user base,” said Moskowitz. “With the additional investment, we look forward to expanding our market share across Ontario and further enhancing our premium, content-driven experience for consumers.”