Online betting company Pointsbet Holdings Ltd [ASX:PBH] recently announced the successful completion of its capital raise offer.
It raised $82.8 million through a retail entitlement offer.
The PBH share price held steady, sitting at $10.23 at the time of writing, after three weeks of decline.
Source: Optuma
What’s happening at Pointsbet?
Back in August, Pointsbet announced a five-year partnership with NBC Universal in the United States.
This was seen as a huge gain for the company, as the laws surrounding online gambling have been relaxed in the US state of Illinois, opening up opportunities for exclusive agreements with iconic teams such as the Chicago Bulls, along with a multitude of other teams and sports.
At the time of these announcements, Pointsbet had been trading around $8.00.
Since then, the company has announced its official launch in Illinois, with Colorado and Michigan to come next.
With the announcement of the retail entitlement offer, all up the company has now raised $153.2 million.
This retail entitlement offer will see Pointsbet offer 12.7 million new shares at AU$6.50 per share.
Where to from here for the PBH share price?
With the capital raise complete and the company’s US expansion well underway, the future for Pointsbet is looking very good, to say the least.
Looking into the technical side, as we mentioned, Pointsbet was trading around $8.00 at the end of August when the Illinois expansion was announced.
On the back of the announcement, the share price shot up over 90% to a high of $15.25 before declining to $10.23, where it’s now trading (at the time of writing).
Source: Optuma
From the high of $15.25, the price declined. Should this decline continue, then the levels of $9.70 and $8.00 may become the focus.
Source: Optuma
On the upside, if the price turns around, then the levels of $12.00 and $12.80 may provide future resistance.
Regards,
Carl Wittkopp,
For Money Morning
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