Posted on: September 14, 2020, 12:26h.
Last updated on: September 14, 2020, 01:21h.
Score Media and Gaming, the operator of theScore and theScore Bet, said today its stock is graduating from the Toronto Venture Exchange to the more traditional Toronto Stock Exchange (TSE).
Score’s shares currently listed on the Toronto Venture Exchange will be delisted, while the stock will start trading on the TSE on Tuesday, Sept. 15. Investors don’t need to take any action related to the promotion, according to the company.
This graduation comes at an exciting time for theScore, as we continue the multi-state rollout of our award-winning sportsbook, the ScoreBet,” said Score Media founder and CEO John Levy in a statement.
The move to the TSE could help with optics toward Score Media shares. Companies trading on the venture exchange are predominantly smaller, speculative firms. While those names often come with potentially exhilarating growth prospects, many lack the resources to be viable long-term investments, keeping them off larger exchanges.
Good News Flows South of the Border
Score’s US-listed shares, which trade over the counter under the ticker “TSCRF,” surged more than 22 percent on the TSE news.
The company did not comment on what’s next for the equity trading in the US. But theScore’s profile is on the rise in the world’s fastest-growing sports betting market. Last month, the company sold $25 million in stock to raise cash for US expansion efforts.
Earlier this month, theScore Bet went live in Colorado, joining New Jersey as the states in which the app is available. It’s close to launching in Indiana as well.
News of the Canadian exchange promotion vaulted Score’s market capitalization to nearly $230 million. The combination of a more traditional listing venue in its home market and rising market value could make the stock more appealing to a broader swath of investors. That, perhaps, includes professional market participants that usually don’t transact in equities residing outside major bourses.
Score Media’s hurdle to listing on a major US exchange is its share price. At this writing, the stock resides around 60 cents. But the Nasdaq and New York Stock Exchange require higher prices than that for new listings on those prestigious boards.
Where Score stock trades and where ScoreBet is available are two important pieces of the investment thesis here. But there’s more to the story.
At a time when media and sports betting partnerships are being wracked up seemingly on a weekly basis, it’s still common to find internet chatter about Toronto-based Score being a possible takeover target, because it’s a media and betting entity under one umbrella.
Assuming a premium to the current market capitalization of $230 million, Score Media would still be easily digestable to a number of companies looking to bolster sports betting footprints while getting the benefits of a media kicker.
For now, that’s just speculation on the part of market observers. Score isn’t talking about a sale. But if its stock appreciates on the TSE and if ScoreBet debuts in more states, any would-be buyer could be compelled to pay up.