On the 29th of September Penn National Gaming closed their public offering of 16,100,000 shares. With $0.01 par value per share. In this offering there was included 14,000,000 shares of the common stock together with an additional 2,100,000 shares issued to the underwriters of the option granted.
This is a quite massive offering meaning that Penn National will be raising $982 million. Heavily strengthening the pocket.
So what should all this money be used for you may wonder? Well according to the company they will use it to further accelerate their omni-channel strategy. Here we see launching of their Barstool app as a strong move in this segment. We could possibly expect even further expansion here together with some more intense marketing strategy.
Bold move to also strengthen the balance sheet
The fact that all land-based casinos were closed for a period, as a result of the spreading pandemic. This has off course had a huge impact on the cashflow for companies like Penn National Gaming. Hence this public offering of stock will be a way to also strengthen the balance sheet even further. Making room and possibility for a strong move with further expansion of the Barstool app most likely.
This successful offering provides our Company with additional resources to accelerate our unique omni-channel strategy, including launching the Barstool Sportsbook app in new markets, developing new products and features, establishing Barstool-branded sports bars and retail sportsbooks and reimagining the customer experience at our casinos, all while fortifying our balance sheet,
Jay Snowden, President and CEO of Penn National Gaming
So it is clear that they are happy and look forward with further expansion of the sportsbook app.
Next move in the online segment?
It is to no surprise that the online segment for casino and sportsbetting is moving quickly is Pennsylvania. To say the least we could assume that the pandemic has helped accelerating this movement a lot. Therefor it could be interesting to speculate if there are further acquisitions to be made from Penn National Gaming in this field. The numbers of expansion we see in the online casino and betting world is truly remarkable. An area we could expect a big player like Penn would want to be a part of.
But this is only speculations. So far we have only heard the CEO talk about further expansion of the Barstool sportsbook app itself.
So the next move could possibly be something more closely related to online casino and the possible expansion in this field.
Upcoming move from Penn Gaming?
So what could we expect from Penn Gaming and their newly released Barstool app? Well, with the fresh money in hand from the public offering, they do have the power to offer the brand in other states.
All in all we could expect to se a lot more of the Barstool brand the upcoming seasons. Whether online or more land-based is still to be discovered.
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