Rush Street Interactive, Inc., on Monday said it has begun the process of redeeming all outstanding publicly held warrants.
The online casino and sports betting company launched its first online gaming site in New Jersey in 2016. It currently offers real-money gaming in nine US states via its BetRivers.com and PlaySugarHouse.com sites.
RSI said holders of public warrants have until 5 pm EST on 24 March, to exercise their warrants to purchase shares of Class A common stock underlying such warrants.
The designated exercise price shall be $11.50 per share, the company added.
RSI said as of 19 February, there are approximately 11.5m public warrants. If all warrants are exercised for stock, the company expects to receive approximately $132.25m in cash.
Any warrants that remain unexercised after the deadline will be “void and no longer exercisable,” the company warned, adding holders of those warrants will be entitled to receive only the redemption price of $0.01 per warrant.
The public warrants to purchase shares of RSI’s Class A common stock were issued under a 20 February Warrant Agreement by and among RSI (as successor to dMY Technology Group, Inc.) and Continental Stock Transfer & Trust Company (CST), as warrant agent and transfer agent.
Warrants that were issued under the Warrant Agreement in one or more private placements and held by the founders of dMY Technology Group, Inc. are not subject to this redemption, RSI said.
According to a statement issued by the company, the shares of Class A common stock underlying the public warrants have been registered by RSI under the Securities Act of 1933, as amended, and are covered by a registration statement filed on Form S-1 with, and declared effective by, the Securities and Exchange Commission.