Singapore-based social sports betting platform SportsHero is set to float on the Australian Stock Exchange (ASX) through a reverse merger with its backer, mineral extraction company Nevada Iron, Tech in Asia wrote yesterday.
A total of 60 million shares of common stock will be issued, priced at $0.04 each, to raise $2.2m in proceeds.
SportsHero enables users to compete against each other by predicting the results of sports games. The company, which claims to have 80,000 users, currently focuses on football but will add basketball, baseball and cricket in 2017.
The company secured $2.4m in funding led by Nevada Iron in May 2016, when it revealed the reverse merger plans. That cash was raised to expand into China, India, Singapore, Indonesia, Thailand, Vietnam, Europe, South America and the US.
Proceeds from the flotation will be used to develop new features and to scale further internationally.
Dinesh Bhatia, co-founder and chief executive of SportsHero, will become CEO of the newly merged company. He commented about the future of SportsHero: “I have got one or two very exciting ideas.
“Fantasy sports disrupted betting in America – I have got version 2 of that in my head. It is not going to be real betting – it is an evolution of where the app is right now.”