PointsBet Holdings Limited (PBH) Earnings Call Transcript & Summary

Good morning. Welcome to the PointsBet Holdings Limited 2020 General Meeting. My name Is Brett Paton, and I'm your chair. We have a quorum, and I'm pleased to declare the meeting now open. I'm delighted to be able to extend a warm welcome to our shareholders who are participating through this online meeting platform. I would also like to start by introducing my fellow directors. Sam Swanell, the Chief Executive Officer and Managing Director. Good morning, Sam. Nick Fahey, Chief Commercial Officer and Executive Director. Good morning, Nick.

Hello.

Peter McCluskey Chair of the Audit, Risk and Compliance Committee and a member of the Remuneration and Nominations committee. Good morning, Peter.

Good morning.

Tony Symons, Chair of the Remuneration and Nomination Committee and a member of the Audit, Risk and Compliance Committee. Morning, Tony.

Good morning.

And Becky Harris, member of the Audit, Risk and Compliance Committee and the Remuneration and Nominations Committee.

Good morning.

Good morning, Becky Welcome from Melbourne. Shareholders this morning will be asked to formally appoint Becky Harris as a director of the company. The Notice of Meeting was distributed to all shareholders and copies are available from our ASX announcement. I take the Notice of Meeting as read. As set out in the Notice of Meeting, the formal proceedings comprised 2 resolutions. The resolution will be decided by a poll. Voting on the resolutions is now open, click the Voting icon in the navigation bar of your screen to display the resolutions. You can vote any time during the proceedings until I declare the voting closed. You can also change your vote at any time throughout the proceedings. I will give you a clear prompt later at the meeting to warn of the close in voting. You will-- we will also take the opportunity for questions. [Operator Instructions] Thank you for some questions coming through. We will advise your questions later in the proceedings. [Operator Instructions] The company will release its full financial results later this month. And therefore, we as a company are unable to answer any questions regarding the company's financial or trading performance today. If you have any difficulties voting or submitting questions, please consult the Loomie user guide, which can be accessed within the platform or linked to within our Notice of Meeting. I will now move to the formal business of the meeting. Firstly, casting your vote. I advised at the beginning of the meeting that we will vote on the resolutions by way of a poll. Voting is already open and will remain open during discussions on the resolutions. I will also provide you with a notice that the polls are about to close. Results will be with the ASX after the conclusion of the meeting. Please note that only shareholders, proxy holders or authorized shareholder representatives may vote. Any undirected proxy votes given to the Chairman will be voted in favor of the relevant resolutions. Any directed proxies given to you by the shareholder will automatically be cast as directed when the poll has closed. The Voting icon is available within the navigation bar. Once you click on this, the resolution will appear on your screen along with the Former, Against and Abstain voting options. Simply select one of those options to cast your vote. When voting is closed, your final voting selection will be recorded. If we have any difficulties -- or if you have any difficulties, please refer to the user guide, which can be accessed through the platform. I appoint [ Peter Render ] of Computershare Investing Services as the returning officer. Good morning, Peter. We will move to consider the first resolution, which relates to the ratification of prior issue of placement shares. Resolution 1, ratification of prior issue of placement shares. The resolution and summary of the votes received before the meeting now appears on the screen. On November, 1, 2019, the company announced that it had conducted a placement to institutional investors together with an accelerated, renounceable entitlement offer with retail rights trading. As part of this, the company issued 16,666,667 shares at an issue price of $3.60 per share to institutional investors on 11 November 2019 under the placement component. The funds raised from the issue of the placement shares have been used to support marketing and client acquisition, technology and product development, U.S. business development comprising market access and government licensing fees and sports book fit-out costs and balance sheet flexibility. The placement shares were issued to -- were issued pursuant to ASX listing Rule 7.1. This resolution seeks shareholder ratification pursuant to ASX Listing Rule 7.4 for the issue of placement shares under ASX listing Rule 7.1. By ratifying the issue of placement shares, the subject of this resolution, the company will retain the flexibility to issue equity securities in the future up to 15% annual placement capacity set out in ASX Listing Rule 7.1, with the requirement to obtain shareholder approval. The directors recommend in favor of this resolution or Resolution 1. I now open the floor for questions and discussions.

I note there's a question here from the Australian Shareholders' Association. Thank you. Rob -- Michael Robey from the Australian Shareholders' Association asks, "Can we give a brief outcome of the accelerated rights issue? And what percentage of retail stock took up the rights and how many traded them?" I'll turn to our company Secretary, Andrew Hensher, to respond to that particular question, Andrew?

Thank you, Brett, and thanks, Mike, for the question. In terms of the takeup, it was 99.65% of our retail takeup, which was obviously a very high percentage, and we're very pleased with that. In terms of the percentage of retail traded, at this stage, I'm happy to provide further details of that. We don't have, though, that information in front of us. But it certainly was a very strong -- very -- was a strong entitlement offer, and the bookbuild process for those rights that weren't taken up were also highly competitive, and I believe that shareholders that did not take up their rights got $0.80 per share in that regard.