Proceeds will the company’s corporate development initiatives and general working capital needs.
“This initial tranche of our non-brokered private placement was primarily subscribed to by insiders, family and friends, and long-term shareholders,” said Rivalry co-founder and CEO Steven Salz.
“This commitment and demonstration of is deeply gratifying as we press ahead into a new chapter for the company.”
Co-founder and director Steven Isenberg participated in the offering, acquiring 1,333,300 units.
In addition to his role at Rivalry, Isenberg serves on the advisory committee of the TSX Venture Exchange, is a director of Urbanfund Corp., and is the founder and CEO of M Partners.
Rivalry has indicated that additional closings may follow, potentially bringing total proceeds from the private placement to $3m.A period of restructuring
The fundraising comes as Rivalry undergoes a significant restructuring.
In October, the company announced a second round of layoffs, eliminating 28 positions.
This follows an earlier downsizing in July, which saw nearly 30 employees let go.
The layoffs came as the company recalibrates its strategy and workforce to better align with its evolving business focus.
Rivalry explained that its new direction requires employees with skillsets that differ from those previously needed.
Founded in 2017 with a focus on esports betting, Rivalry has broadened its scope in recent years.
The company expanded into iGaming and ventured into cryptocurrency gambling, recently launching the Rivalry Token, a blockchain-based utility token.
