Genius Sports and Shareholders Offer for Sale 20 Million Shares

Sports betting company Genius Sports announced it launched an underwritten public offering of the company’s common stock to the amount of 20 million shares.

Registration with the SEC Filed, Not Effective Yet

The public offering for which Genius Sports filed a registration statement and a preliminary prospectus with the US Securities and Exchange Commission (SEC) consists of 12 million shares offered by the company and another 8 million being offered by some of the company’s shareholders.

An additional amount of up to 3 million Genius Sports ordinary shares will be available to the underwriters for purchase via a 30-day option.

Genius Sports outlined in the announcement it would not receive any proceeds from the common stock sold by the Selling Shareholders, while proceeds from the sale of its part of the public offering would be used for general corporate purposes.

Securities under the proposed offering will be made available for purchase only by means of a prospectus, obtainable from the acting book running manager of the public offering, Goldman Sachs & Co. LLC. The preliminary prospectus that is subject to completion has not become effective yet.

These securities, Genius Sports outlined in the release, “may not be sold, nor may offers to buy be accepted, prior to the time that the registration statement [filed with the SEC] becomes effective”.

Forward-Looking Statements

Genius Sports noted the public offering announcement faces forward-looking statements and involves significant risks and uncertainties, and the actual outcome may differ materially from the proposed one due to a number of factors, including the impact on the business of future coronavirus-related developments.

The sports data company registered a month to remember in April, after initially signing a ground-breaking deal with the National Football League (NFL) to become the exclusive distributor of official sports data of the league for a period of 4 years, while ousting its main competitor and former NFL data partner Sportradar in the process.

Genius Sports then went on to complete its $1.5 billion merger with dMY Technology Group II, after shareholders of the special purpose acquisition company (SPAC) voted to approve the combination at a special meeting of the shareholders.

By the end of the month, Genius Sports released its 2020 financial report, posting 31% growth in revenue year-over-year and tripled adjusted earnings before interest, tax, depreciation and amortization (EBITDA).

The trend set in 2020 continued in the first quarter of 2021, in which Genius Sports achieved 52% increase in revenue year-over-year and raised its sales forecast by 37%.

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