What next for Sportech shareholders?
JP Jenkins, a trading platform for unlisted companies, has been appointed by Sportech to provide a matched bargain facility, in order to facilitate future shareholder transactions in the company’s ordinary shares.
A matched bargain facility connects investor offers to buy and sell certain securities directly with one another.
The facility is expected to operate for a minimum period of 12 months from 16 October 2023, Sportech said, and the intention of the company’s directors is that the facility will continue beyond that time.
Shareholders were warned, however, that the facility could be withdrawn after a year, therefore inhibiting their ability to trade their shares in the business.
Shareholders wishing to trade their shares in the meantime may do so through their stockbrokers.As of the time of writing on 17 October, shares are trading via JP Jenkins for 98p – significantly above the closing price of 84p yesterday.
That price still remains a long way behind Sportech’s high, however, with shares having traded for upwards of £4 as recently as January 2022.
Sportech first announced its intention to delist its shares in September this year, causing its share price to collapse by almost 50%.
The Edinburgh-based business operates sports bars and other betting venues in the US state of Connecticut, where it has an exclusive licence to offer pari-mutuel wagering and an agreement with the Connecticut Lottery Corporation to provide retail sports betting.
The company also offers online pari-mutuel betting in Connecticut via Mywinners.com, and nationwide across the US via 123bet.com.
When announcing the proposal, Sportech said that a review evaluating the benefits and drawbacks of operating as a listed company found “significant burdens” associated with maintaining its public status.
The financial cost, alongside the legal and regulatory burdens of remaining public, were considered “disproportionate to the benefits of the company’s continued admission to trading on AIM,” according to the Sportech board.