FSport AB (publ)

FSport AB (publ) positions itself for growth through the revenue-generating media part ahead of the rights issue

FSport AB (the “Company”) has time and again confirmed its ability to build exciting and desirable games within Daily Fantasy Sports. At the same time, the market potential of Daily Fantasy Sports through license-based betting has proved difficult to realize in Sweden. The Company is therefore now taking the step to switch to a more revenue-generating model for the proprietary game forms, ahead of the rights issue of approximately SEK 4 million, which is subject to approximately 55% subscription commitment. The subscription period starts on June 11 and ends on June 25, 2024.

As part of this, the Company has decided to shift focus from the game license-based model where the games are sold directly to end customers, to instead concentrate the business on the revenue-generating media part.

Over the years, the Company has developed a number of popular games with a loyal following. The Company will capitalize on these games and use them as tools in the media section for user acquisition, sponsored integrations, leagues and competitions, etc. In connection with this, the Company is now launching a free European Championship tip for the upcoming European Football Championship in Germany in the summer of 2024. In connection with the European Championship tip, a European Championship section is also being launched on the sports media portal 1×2.se, where visitors are guided to the best odds and betting tips throughout the championship.

The new European Championship tip is clear evidence of the Company’s ability to develop attractive, saleable products for a constantly changing market, as well as to develop entire concepts where several parts can be combined into a unified consumer flow that benefits both visitors and partners.

“Fundamentally, this is an entirely positive decision for FSport. A very large part of our expenses have been license-related throughout the Company’s existence, and this means that we now have fundamental stability and security,” comments Joel Hinz, CEO of FSport AB.

By strengthening its digital presence and expanding its self-produced media content in digital sports media, the Company has increased its competitiveness. The implementation of a comprehensive savings program has optimized the cost structure. With these changes and a focus on revenue-generating media, the Company is now better equipped for commercial success and continued growth, supported by the upcoming rights issue.

The subscription period for the rights issue resolved by the Annual General Meeting will start on Tuesday, June 11. The rights issue comprises a maximum of 133,751,922 shares which, if fully subscribed, will provide the Company with approximately SEK 4 million before issue costs. Each share in the Company entitles the holder to one (1) subscription right for subscribing to shares. Six (6) subscription rights entitle the holder to subscribe to seventeen (17) new shares, where the subscription price amounts to SEK 0.03 per new share. The subscription period runs until June 25, 2024.

“Our license-based games have always had high potential that has not been translated into sufficiently significant revenues. What we now lose in potential we immediately get back in a significantly improved bottom line, while the considerable time required to offer betting can be directly transferred to our thriving media business. We are now conducting our rights issue which, if fully subscribed, will provide FSport with approximately SEK 4 million before issue costs. This capital will be used to finance our distribution and increase our commercial reach through strategic content expansion and product refinement within the revenue-generating media part,” says Joel Hinz, CEO of FSport AB.