- Penn National Gaming closes its common stock public offering and managed to raise $982.1 million.
- The process involved selling 16.1 million shares of common stock.
- The added funds will be used to accelerate the expansion of the Barstool Sportsbook app in multiple states.
WYOMISSING, Pa. – The Barstool Sportsbook app is getting a huge financial boom after parent company Penn National Gaming, Inc. unloaded 16.1 million shares, closing its public offering of common stocks, and raising $982.1 million.
This allows Penn National to accelerate the expansion process. The Barstool Sportsbook app will use the added funds to expand to multiple states and provide high-quality sports betting.
The offering was divided by 14 million shares of common stock directly from Penn National and an additional 2.1 million shares of common stock offered by shareholders.
Barstool To Expand
The added funds allow the newly formed legal sportsbook the finances to compete with already established betting operations like DraftKings and William Hill.
Per the official SEC Form 8-K, each of the 16.1 million shares were valued at $61 per share. The transaction was standard for this kind of process.
“This successful offering provides our Company with additional resources to accelerate our unique omni-channel strategy, including launching the Barstool Sportsbook app in new markets, developing new products and features, establishing Barstool-branded sports bars and retail sportsbooks and reimagining the customer experience at our casinos, all while fortifying our balance sheet,” said Jay Snowden, President and Chief Executive Officer of Penn National. “Pro forma for the transaction, as of June 30, 2020, the Company had net traditional debt of approximately $1 billion, representing a significant reduction from pre-COVID-19 periods.”
Following the transaction, Penn National announced that the next step is to launch the Barstool Sportsbook app in the following states:
- New Jersey
- West Virginia
New Jersey and Michigan are expected to have access to the Barstool Sportsbook app as early as Q1 2021. In addition, by the end of 2021, Penn National expects to be live in all seven legal sports betting markets.
This is a very exciting time for our Company,” continued Snowden. “On September 18, we officially introduced the Barstool Sportsbook app in the state of Pennsylvania, which broke records for the most downloads ever for the launch of a new mobile sportsbook, and it generated impressive handle. This momentum has continued into our second week of operation, as this weekend’s handle grew by 14% over our initial weekend despite continuing to spend $0 in external marketing. In addition, we are extremely pleased with the operating performance of our properties this quarter, despite continued occupancy restrictions. Penn National currently continues to expect 3Q20 consolidated revenues will range from $1,040 million to $1,145 million and 3Q20 consolidated Adjusted EBITDAR will range from $410 million to $450 million, consistent with the ranges previously reported in our prospectus supplement. In short, we believe our Company is incredibly well positioned for long-term success based on its highly differentiated approach to both land-based and interactive gaming and sports betting.”
New investors are now able to join with the newly available investor presentation Penn National has made live. The future for Penn National and the Barstool Sportsbook app appears to be a bright one.
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