NorthStar Gaming announces strategic investment from Playtech

(PRESS RELEASE) -- NorthStar Gaming Inc. has completed a strategic investment by Playtech plc pursuant to which Playtech has invested C$12.25 million into NSG by way of a Convertible Debenture. The investment completes the concurrent financing in connection with the Company’s reverse take over of Baden Resources Inc. NSG expects to complete the RTO and once the application process is completed, NSG will begin trading on the TSX Venture Exchange.

Playtech investment is latest fundraising completed by NorthStar

In connection with the completion of the RTO, the Debenture will convert into units of NSG consisting of one common share, one half warrant with an exercise price of C$0.85 and one half warrant with an exercise price of C$0.90, with each C$0.50 of outstanding principal amount of the Debenture being converted into one unit. The NSG warrants will have a term of five years from the date of the conversion of the Debenture. The NSG common shares received by Playtech on conversion will be exchanged for Baden common shares in connection with the RTO on the same terms as all other NSG common shares. Replacement warrants of Baden on substantially similar terms as the NSG warrants will also be issued to Playtech in connection with the RTO.

The Company previously announced the issuance of 10,150,000 subscription receipts (the “Subscription Receipts”) at a price of C$0.50 per Subscription Receipt for gross proceeds of C$5,075,000. This is in addition to the previously announced subscription by Torstar Corporation of 50,000 preferred shares in NorthStar for gross proceeds of C$5,000,000 (the “Torstar Investment”).

Inclusive of the Convertible Debenture, the Subscription Receipts, and the Torstar Investment, NorthStar has raised gross proceeds of C$22,325,000 in connection with the RTO.

Amendment to Software and Services Agreement

In connection with the Playtech investment, the Company has entered into a comprehensive amendment to its Software and Services Agreement with Playtech (the “Amendment”). The Amendment significantly expands the partnership between NorthStar and Playtech, and includes a 10-year extension to the agreement, the right to expand the agreement across the entire Canadian marketplace, and changes to certain commercial terms.

Establishment of Strategic Partnership

Further, Playtech will provide strategic advice to the Ontario-based online casino and sportsbook operator, notably online operations, managed services and market expansion. Playtech has offices in 20 countries around the globe and currently provides NorthStar with a suite of technology solutions, including Playtech’s IMS Platform, Casino and Live Casino software that power the NorthStar Bets platform.

“Playtech’s unparalleled expertise in the gaming industry will help NorthStar accelerate our growth and rapidly expand our user base,” said Michael Moskowitz, Chief Executive Officer and a founding partner, NorthStar Gaming. “With the additional investment, we look forward to expanding our market share across Ontario and further enhancing our premium, content-driven experience for consumers.”

Capital raised from Playtech’s investment and the expanded partnership with Playtech will support growth of NorthStar’s footprint across Ontario and future Canadian markets. The capital will allow NorthStar to invest in new technological innovations for the NorthStar Bets gaming platform while also reaching new audiences through marketing campaigns.

“We are excited to deepen our partnership with NorthStar and become the market-leading online gaming platform in Canada,” said Mor Weizer, Chief Executive Officer, Playtech. “As a key partner of NorthStar in their early stages, we understand and were impressed by NorthStar’s unique business model and product offering and are excited to further expand our partnership.”

As part of the agreement, Chris McGinnis, Playtech’s CFO, will join the Board of Directors of NorthStar as a Non-Executive Director, acting as Playtech’s representative.