Pires Investments (AIM: PIRI ) has entered into a share subscription agreement to subscribe for 6,667 ordinary shares in Low 6 at a price of £30 for a consideration of £200,010.
The group’s investment into London-listed Low6, a UK incorporated company that has developed a next generation sports betting platform, forms part of a £1.5m funding round.
The £200,010 consideration will be satisfied from the existing cash resources of Pires.
As a group, Low6 provides a white-labelled mobile platform to sports teams/franchises that enable them to offer a pooled sports betting experience to users of their fan-based apps.
Pires said there is ‘a significant market opportunity’ for sports betting products designed to enhance the excitement of watching sports while being engaging and simple to use.
Low6 will enter into a partnership with a sports team or franchise which enables its product to gain access to the partner's established fan base thereby reducing customer acquisition costs and strengthening brand and customer loyalty to enhance customer retention.
Low6's business model also enables its partner to share in the revenue generated from its platform, ‘an aspect which should be particularly attractive to fans of the sports team.’
Low6 can either embed its platform within a partner's app or build the app for its partners. Pires believes this partnership is ‘highly scalable’ and Low6 expects to generate revenue from retaining a percentage of the stakes placed by the users of the platform.
Low6 already has several contracts in place with UK football clubs, championship and Scottish Premiership leagues as well as partnerships with Sky Business and Yinzcam Inc.
Specifically, Low6 has previously signed a three-year exclusive partnership with Yinzcam Inc, a US-based company which provides the apps for a number of the fan bases of leading sports teams/franchises with over 90 million installs of its mobile apps worldwide.
It is currently involved with more than 190 professional teams, leagues and venues in the US, Canada, Spain and Australia and has access to an extensive client base.
Low6 has raised over £8 million to date and plans to raise more funds through a pre-IPO funding round with a view to completing an IPO in H1 2021, the company told investors.
“We believe that Low6 has developed an exciting and innovative platform which is attractive both to sports clubs and their fan bases and, with the additional funding now being provided, they will be able to scale the business significantly,” said Peter Redmond, Chairman of Pires.
Shares in Pires Investments have increased by over 10% in the past month to open slightly lower this morning at 3.9p following the investment.
Reasons to Follow Pires
Pires Investments plc (AIM: PIRI) is an investment company providing investors with access to a portfolio of next generation technology businesses with significant growth potential.
The Company is focused on building an investment portfolio of high-tech businesses across areas such as Artificial Intelligence ("AI"), Internet of Things ("IoT"), Cyber Security, Machine Learning, Augmented Reality and Virtual Reality ("AR/VR") and Big Data.
The Board believes its portfolio demonstrates evidence of traction and the potential for exponential growth, due to increasing global demand for development in these sectors.
Earlier this month, Pires announced its new venture into decentralised finance through a share subscription agreement into .DeTech Studio Limited developing a decentralised finance technology platform ("YOP"), providing Pires with a 15% equity interest in DeTech.
The company told investors that it believes decentralised finance technology platforms offer opportunities for growth and that it could capture a significant portion of the DeFi market.
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