BetMakers Share Price Down After Waterhouse Deal (ASX:BET)
The BetMakers Technology Group Ltd [ASX:BET] share price is down 1.9% currently. Trading at $1.04 per share.
This comes after the stock peaked at $1.125 early after market open, which was, at the time, a 6.1% gain from the previous close.
Suffice to say; it would appear that the market is in two minds when it comes to BetMakers latest update. Or perhaps some investors have decided now is the right time to start taking profits…
Waterhouse Group agreement yields more than $6 million
The reason for the early optimism this morning was due to BetMakers’ ongoing deal with Waterhouse Group. An agreement commenced on 22 May and has yielded $6.22 million in ‘relevant’ revenues to 30 June.
As a result, this has unlocked 34,564,921 options for Waterhouse VC. Class A Performance Right shares are exercisable at 18 cents per share, which Waterhouse has chosen to do.
So, this means that BetMakers has today issued more than 34 million new shares. Which is no doubt playing a factor in the mid-day selloff.
After all, these options will dilute other investors’ holdings.
But, BetMakers CEO Todd Buckingham was still singing Waterhouse’s praises. Noting that they are a substantial reason for the company’s overall success of late:
‘As a result of the Company’s exceptional performance over the period, we’re extremely pleased to be able to issue Waterhouse VC with the first tranche of Shares.
‘The deal with the Waterhouse Group not only contributed to BetMakers’ growth revenues over the past year but also has helped BetMakers develop these unique products and establish itself as one of the leading B2B technology providers for the racing industry.’
Shareholders will now have to wait and see just how lucrative this agreement is long term.
Because if Buckingham is right, then the revenue gains should continue to flow.
What’s next for the BetMakers Share Price?
Looking ahead, the bigger story for BetMakers is where it plans to find growth next.
As investors will no doubt be aware, the company recently rescinded its takeover bid of Tabcorp. A decision that was made after Tabcorp unveiled a surprise demerger proposal.
So now, BetMakers will need to find either other takeover targets or extract further growth from their operations. Either way, it seems likely that the Tabcorp deal is dead and buried at this point.
But, with an incredible run over the past year, shareholders probably aren’t too worried.
BetMakers has quickly made a name for themselves and has been a star performer in the small-cap sector. Which is exactly the kind of performance every investor dreams of from these tiny stocks.
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For Money Morning
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