Raketech Signs Revolving Credit Facility with Bank of Valletta
Raketech (Nasdaq:RAKE), a prominent iGaming performance marketing partner, has signed a revolving credit facility (RCF) with Bank of Valletta, one of Malta's largest banks. This new RCF, offering a credit limit of EUR 5 million at an interest rate of 4.5% over the variable internal bank rate (currently 2.15%), aims to bolster Raketech's financial flexibility and support its growth initiatives. The existing credit facility with Avida Finans AB will remain active until December 2024. CEO Johan Svensson noted that this move underscores Raketech's solid financial standing and the trust from their banking partners.
- New RCF provides EUR 5 million credit limit.
- Interest rate set at 4.5% over the variable internal bank rate (currently 2.15%).
- Enhances financial flexibility for Raketech.
- Supports Raketech's growth initiatives.
- Demonstrates strong financial position of Raketech.
- Reflects trust from banking partners, Bank of Valletta.
- Existing credit facility with Avida Finans AB still running until December 2024 could indicate overlapping financial obligations.
- Potential risk of increased financial liability with new RCF.
Insights
The announcement of Raketech securing a EUR 5 million revolving credit facility (RCF) with Bank of Valletta indicates a strong vote of confidence from a significant financial institution. This move is noteworthy as it enhances Raketech's liquidity and financial resilience, providing a safety net for future investment and operational needs.
The interest rate of 4.5% over the internal bank rate (currently 2.15%) equates to a total interest rate of 6.65% when utilized. While this rate is relatively competitive, it's essential to consider the cost-benefit analysis of drawing on this credit versus other funding sources. Given the company's existing RCF with Avida Finans AB will continue until December 2024, this new facility could serve as a strategic tool for seamless financial operations without disruptions.
Short-term, the financial flexibility provided by this new RCF can help Raketech navigate any unforeseen expenses or capitalize on growth opportunities promptly. In the long-term, sustained access to capital via trusted banking partners like Bank of Valletta could support scalable growth initiatives and provide a cushion against economic fluctuations.
Retail investors should see this strategic move as a positive step towards ensuring financial stability and growth potential for Raketech, although they should monitor the company’s utilization of this facility and any resulting financial obligations.
From a market perspective, Raketech's ability to secure a revolving credit facility with Bank of Valletta emphasizes the company's strong position within the iGaming performance marketing space. The backdrop of continued partnership with a major bank suggests a robust operational model and credible growth strategy.
This RCF could signal to the market that Raketech is preparing for aggressive expansion or buffering against volatility within the iGaming sector, a competitive and rapidly evolving market. The added liquidity offers Raketech the agility to invest in new technologies, marketing campaigns, or even potential acquisitions without the immediate pressure of equity financing, which could dilute shareholder value.
Moreover, the parallel continuation of the existing facility with Avida Finans AB until December 2024 hints at a well-thought-out transitional phase, minimizing financial risks while maximizing resource availability.
For investors, this development could be interpreted as a strategic and prudent approach to maintaining financial health and operational momentum, likely resulting in enhanced shareholder value over time.
TRIQ I-IMSIDA IL-GZIRA, MT / ACCESSWIRE / June 4, 2024 / Raketech (STO:RAKE)
Raketech Group Holding Plc (Nasdaq:RAKE), the iGaming performance marketing partner is pleased to announce that the company has signed a revolving credit facility (RCF) with Bank of Valletta, one of the largest banks in Malta, partially owned by the Maltese government. This strategic move will bolster the company's financial flexibility and support its growth initiatives. The current credit facility with Avida Finans AB will continue to run in parallel up until December 2024.
New RCF Details:
- Credit Limit: EUR 5 million
- Interest Rate:
4.5% over the variable internal bank rate (currently2.15% ) when utilized.
"This credit facility reflects Raketech's strong financial position, and the trust our banking partners have in our business model and future growth plans. We have worked with Bank of Valletta for the last ten years and we are excited to expand on this partnership and to explore further growth opportunities together with them", said Johan Svensson, CEO of Raketech.
For more information, please contact:
About Raketech Group
Raketech is a leading online affiliate and content marketing company, with expertise in delivering comparison services for sports and gaming, online guides, communities, and social media products. Raketech guides sports and gaming enthusiasts to the best possible services, while also delivering high-quality traffic and leads to its partners. Raketech grows both organically and via acquisitions and operates its business in accordance with a clear framework for responsible affiliate marketing services. The company's shares are listed in Nasdaq First North Premier Growth Market with ticker RAKE. Carnegie Investment Bank AB (publ) is the company's Certified Adviser. For more information, visit www.raketech.com.
SOURCE: Raketech
View the original press release on accesswire.com
FAQ
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