Snipp Interactive is a provider of digital marketing promotions, rebates, and loyalty solutions. Today, it was announced that a subsidiary of Bally’s Corporation has signed an agreement to invest $5m in Snipp.
With this investment, Bally's will be able to nominate a director to Snipp’s board of directors, which should increase in size to five directors total. Bally’s is also provided with a right of first refusal in regards to offers looking to purchase all or substantially all of Snipp’s assets received by Snipp from any Bally’s competitor.
The finalization of the investment still needs to be approved by the TSX Venture Exchange as well as the satisfaction of other customary closing conditions.
Once completed, Bally's is expected to own approximately 9% of the issued and outstanding common shares of Snipp. Bally's acquired 25m common shares of Snipp at $0.20 per share.
The agreement will also have Bally's and Snipp enter into a commercial agreement. This will have Bally’s become Snipp’s exclusive gaming partner for Snipp’s loyalty gaming platform (“Gambit”), recently acquired in Snipp's February 22, 2022 acquisition of Gambit Rewards, Inc.
In terms of arrangements, Bally's will receive a three-year term license of the SnippLOYALTY software platform. The loyalty platform will be implemented at physical and online Bally's properties.
Bally's will also be afforded the option to license the source code for the specific version or versions of the SnippLOYALTY software platform used at Bally’s properties for a price of $10m.
Atul Sabharwal, Founder & CEO of Snipp Interactive said: "Bally’s is one of the most forward-thinking companies in the gaming industry and their investment illustrates the value that they see in SnippLOYALTY as well as our SnippCARE customer acquisition, retention, and engagement platform."
"Working together with Snipp furthers our strategic goals around omnichannel integration with well-established technology that can combine rewards platforms across the Bally’s brand and thereby provide our customers with a seamless user journey," said Adi Dhandhania, Chief Operating Officer of Bally’s Interactive, North America.
Shares of Snipp purchased by Bally’s as part of the investment are subject to a four-month and one-day hold period under Canadian securities laws and the policies of the TSXV.
