Tekkorp Capital Increases Stake in FansUnite Entertainment

As part of a previously negotiated share purchase agreement, Tekkorp now owns 15.91% of FansUnite’s outstanding shares, solidifying its position in the company.

Previously, Tekkorp held 7.61%. Since September 16, 2024, when an agreement was signed for the purchase of additional common shares and warrants, the investor has been growing its influence, and there may be further increases ahead.

FansUnite is listed on the OTC Markets in the United States under the ticker FUNFF.

Tekkorp Strengthens Standing in FansUnite Despite Difficulties

Back in September, Tekkorp bought 63.9 million common shares. Tekkorp’s holdings in FansUnite now total 46.7 million common shares, following the transfer of 30 million previously acquired shares, along with 12.5 million warrants that may be exercised.

The investment comes more or less a year after in 2023, Tekkorp first bought out 13.75 million shares in the company, and arguably before it faced some of its biggest challenges. Instead of backing out, though, the investor has decided to pursue further expansion and noted that it believed in FansUnite’s leadership.

FansUnite has had to consider some major moves over the past months. Notably, the company agreed to sell Betting Hero to GeoComply and Betting Hero’s co-founders. in June last year, seeking to patch up ailing finances.

The net proceeds of the deal were pinned at $20 million at the time of the deal, but the sale itself was estimated at $37.5 million.

At the time, FansUnite CEO Scott Burton said that the company had taken a long and hard look at its operations and had found the cash offer put forward by the buyers to have been substantial enough to merit acceptance.

“After extensive deliberation with our board and advisers, we believe it’s in the best interest to recommend the sale and allow the shareholders to vote on a return of capital,” Burton noted at the time.

It is not immediately clear what Takkorp’s plans for the business are and whether the company will pursue them. At the time, the investor’s decision would suggest that the firm is happy with the status quo and keen to increase its position, possibly in anticipation of an increase in FansUnite’s stock.

FansUnite’s Rough Downward Spiral  

FansUnite’s stock took a nosedive on August 29, when it was trading very close to zero until October 9, occasioned both by the sale of its primary asset – Betting Hero, but also naturally because the company delisted from, the Toronto Stock Exchange.

The capital was able to use around 90% of the proceeds from the sale to redistribute capital back to shareholders.

In the meantime, Tekkorp also picked a new partner for Africa, as the investor believes that the region offers untapped potential in the gaming sector and that the firm is keen to secure pole positions.

Tekkorp Holdings is a Las Vegas-based investor in the iGaming space.