Betting technology business Sportech announced a proposal from its Board of Directors involving the de-listing of the company’s shares from the Main Market of London Stock Exchange (LSE) and enlisting them to trade on AIM.
AIM More Suitable to Sportech
The Board of Directors’ proposal also involves the company’s ordinary shares of 20 pence each to be canceled from the premium segment of the Official List of the Financial Conduct Authority (FCA). As the proposed move requires shareholder approval, Sportech is convening a general meeting on June 29, 2021, to be held at its offices in Edinburgh.
“Cancellation of the listing of the Ordinary Shares from the Official List 28 July 2021 becomes effective Admission of, and commencement of dealings in, the Ordinary Shares 28 July 2021 on AIM.”Official Statement, Sportech
According to the Listing Rules, 75% of company shareholders should vote, either in person or by proxy, to approve the move which the company’s directors strongly believe, will be beneficial in the long term.
Giles Vardy, chairman of the Board of Directors at Sportech, said in a statement to shareholders that the move will help the business find a more suitable market and environment on AIM, an exchange tailored to medium and small size companies like Sportech. It will also offer the company greater flexibility to agree and execute future corporate transactions in a cost-effective way compared to a scenario in which it remains on the Official List.
Connecticut Vital for the Business
Sportech, which operates pari-mutuel wagering on horse racing in Connecticut, was among the parties left out of the sports betting deal in the state which allowed the tribes and the Connecticut Lottery Corporation to offer wagering on sports events.
The sports betting deal which also legalized online poker, allowed the tribes to expand the currently available slot game operations at their casinos and introduce new table games such as craps and baccarat.
Spotech’s initial reaction to the news was that it would seek to enter into a separate deal with the state, but according to officials from the governor’s office, the law allows the lottery to sublicense operations and most probably it would sign an agreement with the technology company.
Scouring the Hartford area for suitable locations for sports betting venues, the Connecticut Lottery Corporation is strongly considering venues operated by Sportech to become part of its network of 15 locations statewide, a development which means Sportech will be sublicensed to accommodate the operations.