SharpLink Gaming has sold its fantasy-sports and sports-game-development units for $22.5 million in cash and used the bulk of the proceeds to eliminate its interest-bearing debt.
SharpLink on Tuesday said the sale of the businesses to privately held RSports Interactive positions the company as a pure-play performance-marketing company serving the sports-betting and iGaming industries.
The Minneapolis company said it used about $14.9 million of the sale proceeds to repay in full all of its term loans and lines of credit, and that it paid roughly $4.5 million to redeem a senior convertible debenture.
SharpLink said nearly all employees of the acquired units are moving to RSports, and that Chris Nicholas has resigned as chief operating officer and a member of the board in connection with the sale.
The company said it expects the improved total shareholder equity resulting from the deal will enable it to regain compliance with Nasdaq’s minimum continued listing requirements.
Trading in shares of SharpLink, which closed Monday at $1.81, was halted premarket on Tuesday.