The private placement was conducted in several stages. The first tranche, closed in late November, brought in C$1.94m.
The second tranche added C$1.05m shortly thereafter, and the third tranche, finalised in December, contributed C$334,688.
Organisational challenges
The shortfall in fundraising comes as Rivalry navigates significant organisational challenges.
In 2024, the company underwent extensive restructuring including two rounds of layoffs that halved its workforce.
In addition, CEO Steven Salz and other top executives voluntarily reduced or eliminated their salaries to align with the company’s cost-cutting measures.
These actions were part of an effort to improve sustainability but have weighed on Rivalry’s financial results.
For Q3 2024, the company reported a 25% year-on-year drop in net revenue, which fell to C$3m.Its betting handle also declined by 24.4%, reaching C$79.9m for the quarter.
Strategic rebrand
Founded in 2017 with a focus on esports betting, Rivalry has since broadened its offerings to include iGaming and cryptocurrency gambling.
The recent launch of the Rivalry Token, a blockchain-based utility token later renamed to NUTZ, marked a key milestone in its evolution.
CEO Salz described Q3 2024 as “the most substantive evolution of our business since founding.”
The company introduced several key features during the quarter, including a crypto-first cashier that allows for deposits and wagers in digital currencies, a redesigned casino experience, an expanded sportsbook, and a new VIP rewards programme targeting high value players.
“The immediate financial results of this high-conviction business evolution is that short-term net revenue is down, however we are beginning to go back on the offensive with a completely evolved product, brand, and marketing approach, as well as an operating footprint that presents a much smaller gap to profitability to close,” Salz said at the time.
Rivalry’s share price has plummeted nearly 85% over the past six months, now trading at just C$0.18.
