Sharplink has entered into an agreement to sell its fantasy sports business units to RSports Interactive.
A majority of the employees will also move to RSports to ensure a smooth transition.
SharpLink reported that approximately $14.9m of the proceeds from the sale were used to repay loans. Moreover, SharpLink paid approximately $4.5m to clear other debt from an agreement in February 2023.
As a result, SharpLink is now free of interest-bearing debt.
Information detailed in a current report on Form 8-K to be filed with the US Securities and Exchange Commission later today reports that the move will generate positive cash flow for Sharplink.
With $19.4m in interest-bearing debt cleared Sharplink will be able to regain compliance with Nasdaq’s minimum continued listing requirements.
SharpLink CEO Rob Phythian commented on the sale: “This sale represents a pivotal milestone for SharpLink, allowing us to unlock significant value in our fantasy sports and game development businesses and achieve multiple critical objectives without having to turn to a potentially dilutive equity financing to strengthen our financial footing, regain compliance with Nasdaq, and support our efforts to ultimately create sustainable long-term value for our shareholders.
“Moreover, we are confident that our fantasy sports and sports game development businesses will continue to thrive and prosper in the great hands of RSports, which has exciting plans to elevate the combined businesses to new heights.”
Last year, Sharplink reported a rise in profit for Q3 2023, more than double Q3 in 2022. SharpLink also reported that its gross profit margin grew to 34.8% year-over-year.
