Playtech, one of the world’s biggest providers of slots and live dealer games for online casinos, has announced that it has made a strategic investment of 12.25 million Canadian dollars in NorthStar Gaming, the Canadian casino operator based in Toronto, Ontario.
The investment has been made in the form of a convertible debenture, which will later convert into equity and warrants as NorthStar has agreed in June 2022 a reverse takeover of Baden Resources Inc.
When that proposed reverse takeover will be completed, Playtech will end up owning around 16 percent of the common shares belonging to NorthStar Gaming, along with warrants that would grant it the right to boost that stake up to over 20 percent.
The investment also comes with changes to the NorthStar Gaming board of directors as Chris McGinnis, the Chief Financial Officer of Playtech, will join as a non-executive director representing the investor.
Speaking about the deal, Mor Weizer, the Chief Executive Officer of Playtech, declared himself “excited” to expand the partnership with NorthStar Gaming in such a way and added that his company has “extensive experience” when it comes to succeeding in regulated markets such as Ontario.
“We’ve been impressed by NorthStar’s unique business model and product offering,” Mor Weizer added, revealing that Playtech will be looking to support the Canadian company in its “mission to become the market-leading online gaming platform in Canada.”
Michael Moskowitz, Chief Executive Officer of NorthStar, admitted that the investment will help the operator expand its reach in Canada, thanks to “Playtech’s unparalleled expertise in the gaming industry.”
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