theScore's parent company moves towards US stock listing
Score Media and Gaming Inc. won shareholder approval for a stock consolidation on Wednesday, at its annual and special meeting of shareholders.
The Toronto-based sports media and online betting company had sought approval to consolidate shares in preparation for a U.S. stock listing, as it seeks exposure to a broader investor base and deeper capital markets, Bloomberg reports. Some exchanges require a minimum per-share price for listings.
Score Media's stock is up about 230% this year, making it the top performer in the Roundhill Sports Betting & iGaming ETF (BETZ) and bringing the company’s market capitalization to about C$2.2 billion ($1.7 billion).
Domestic prospects for sports betting legalization have been a key driver for Score Media’s shares, but its U.S. betting app, theScore, has also beaten some analysts’ expectations.
A U.S. listing would allow investors to compare Score Media against its U.S. rivals, according to Eight Capital analyst Suthan Sukumar, who has a buy rating on the stock. Sukumar says the company’s plans to launch an online casino product this year is another “lucrative” catalyst.
Canadian Justice Minister David Lametti unveiled legislation last fall to legalize single-event sports betting in Canada, marking a change in direction for Prime Minister Justin Trudeau’s Liberal government. A second reading of the legislation, Bill C-13, is scheduled for Feb. 19.