Top provider of smart sports betting conversion solutions for the sports betting and iGaming markets in the US SharpLink Gaming has announced its plans to change its jurisdiction of incorporation from Israel to the US.
SharpLink’s Board of Directors Considers Domestication a Logical Step
The NASDAQ-listed company has filed a registration statement with the US Securities and Exchange Commission (SEC) after its board of directors and top managers concluded domesticating as a Delaware corporation would be in the company’s best interests. Following the logic that the majority of SharpLink’s operations are currently based in the US where the company also has most of its outstanding ordinary shares, the switch from Israel to the US felt like a natural decision for the board.
The company’s CEO, Rob Phythian, called the transition a “purely pragmatic” one, considering domestication to be the most “sensible” solution for SharpLink’s. The company’s shareholders will benefit from Delaware’s grounded governance and corporate law principles, while daily operations are expected to remain the same. The company that was founded in 2019 in Minnesota relies on online, proprietary conversion technologies to convert sports fans into bettors for licensed sportsbooks.
At the moment, SharpLink is one of the most successful technology companies reuniting fans, dedicated websites, and entire leagues representing various sports with the most relevant online gaming and sports betting content.
At the beginning of January, SharpLink Gaming purchased $8.2 million worth of FourCubed assets in an attempt to further engage players, improve online traffic, and retain and convert brand new players. Last September, Minnesota Vikings signed a partnership with SharpLink for a Pass or Play fantasy game. SharpLink considered it a good strategy to engage fans while sports betting continues to be outside the law in the state.
SharpLink’s Has Entered into a Plan of Merger with the Delaware Subsidiary
In order for the domestication to take effect, SharpLink Gaming entered into a merger plan with the freshly-formed Delaware subsidiary and a wholly-owned subsidiary created under Israeli laws. The freshly founded Israeli subsidiary is expected to soon merge into the company and turn into SharpLink Delaware’s wholly-owned subsidiary.
Each of the outstanding ordinary or preferred shares will be automatically exchanged for one SharpLink Delaware common or preferred stock. At the same time, outstanding warrants to buy ordinary shares will automatically turn into rights to buy the equivalent number of common stock. Common SharpLink Delaware stocks will continue to be traded on the Nasdaq Capital Market under the old SBET symbol once the domestic merger will be officially completed in Q2 2022.
The company’s shares went up 7% this Monday, reaching $1.72 after it announced filing a registration statement regarding the transfer of its jurisdiction of incorporation to Delaware. Once the registration statement is officially declared effective by the SEC, SharpLink will reunite all its shareholders and seek approval for the domestication plan. The exact details of the shareholder meeting remain to be announced later this year.