SportsHero Limited has raised $1.65 million through a private placement to boost its e-sports gaming and community platforms, targeting new partnerships and market growth in Southeast Asia.
- Private placement of ~71.8 million shares at $0.023 each
- 1 – 2 free attaching options exercisable at $0.03 expiring July 2026
- Funds allocated to commercial agreements, Telco partnerships, and debt repayment
- Lead manager Activ8 Capital Advisors and Wallabi Group receive options as fees
- Placement completion expected by 5 August 2025 under ASX Listing Rule 7.1A
Capital Raise to Fuel Growth
SportsHero Limited (ASX, SHO), a player in the competitive e-sports and gaming technology sector, has announced a successful private placement raising $1.65 million. The company will issue approximately 71.8 million new shares at a discounted price of $0.023 each, accompanied by free attaching options exercisable at $0.03, set to expire in July 2026. This capital injection is designed to accelerate the commercialisation of SportsHero’s e-sports gaming and community engagement platforms.
Strategic Deployment of Funds
The freshly raised funds will be strategically deployed to expand SportsHero’s footprint across Southeast Asia. Key initiatives include increasing commercial agreements with gaming publishers and distributors to diversify and enhance the product offering. The company also plans to intensify sales efforts to secure additional telecommunications partnerships, a critical channel for user acquisition and monetisation in the region.
Moreover, SportsHero intends to test direct marketing channels beyond its traditional Telco-funded advertising, signaling a move towards broader customer engagement strategies. A portion of the proceeds will also be used to partially repay existing debt, strengthening the company’s balance sheet and providing operational flexibility.
Incentivising Partners and Advisors
Activ8 Capital Advisors, the lead manager for the placement, received a 6% cash commission and will be issued options exercisable at $0.02 and $0.04, expiring in October 2027. Similarly, Wallabi Group, which assisted in raising part of the funds, will receive options exercisable at $0.03, expiring in October 2028. These arrangements align incentives for key stakeholders to support SportsHero’s growth trajectory.
Market Context and Outlook
The placement price reflects an approximate 18% discount to the last closing price, a common practice to attract sophisticated investors quickly. Completion of the placement is expected by 5 August 2025, with new shares trading shortly thereafter. This capital raise positions SportsHero to capitalize on the rapidly expanding e-sports market in Southeast Asia, a region with growing digital infrastructure and a young, engaged gaming audience.
While the company has outlined clear uses for the funds, the market will be watching closely for tangible progress in partnership development and revenue growth. The issuance of options introduces potential future dilution, but also signals confidence in the company’s share price appreciation over the next few years.
Bottom Line?
SportsHero’s latest capital raise sets the stage for accelerated growth, but execution on partnerships and market expansion will be critical to justify investor optimism.
Questions in the middle?
- How quickly will new Telco partnerships translate into revenue growth?
- What impact will the options issuance have on share dilution and investor returns?
- Can SportsHero effectively diversify marketing channels beyond Telco-funded advertising?