TORONTO, Oct. 17, 2025 (GLOBE NEWSWIRE) -- Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), the leading sportsbook and iGaming operator for digital-first players, today announces that it has closed the second tranche of its non-brokered private placement (the “Private Placement”) previously announced on September 29, 2025. The Company issued 27,600,000 units (“Units”) at a price of C$0.05 per Unit, for gross proceeds of C$1,380,000. Each Unit consists of one (1) subordinate ...

TORONTO, Oct. 17, 2025 (GLOBE NEWSWIRE) -- Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), the leading sportsbook and iGaming operator for digital-first players, today announces that it has closed the second tranche of its non-brokered private placement (the “Private Placement”) previously announced on September 29, 2025. The Company issued 27,600,000 units (“Units”) at a price of C$0.05 per Unit, for gross proceeds of C$1,380,000. Each Unit consists of one (1) subordinate ...

Core Points - Rivalry Corp. has closed an initial tranche of its non-brokered private placement, issuing 27,600,000 units at a price of C$0.05 per unit, resulting in gross proceeds of C$1,380,000 [1] - Each unit consists of one subordinate voting share and one share purchase warrant, with the warrants exercisable at C$0.10 for a period of 24 months [1] - The proceeds from the private placement will be used for corporate development and general working capital purposes [1] Additional Closings and Debt Restructuring - The company expects to complete additional closings of up to 82,800,000 units, including a strategic family office subscription agreement [2] - Rivalry is also pursuing a debt restructuring in accordance with a debt settlement agreement with its senior lender, expected to be completed by October 24, 2025 [2] Company Overview - Rivalry Corp. operates Rivalry Limited, a leading sports betting and media company focused on online wagering for esports, traditional sports, and casino games [3] - The company is based in Toronto and operates in over 20 countries, holding an Isle of Man license and an internet gaming registration in Ontario [3] - Rivalry aims to shape the future of online gambling for a digital generation, leveraging creative execution and brand positioning [3]

Core Viewpoint - Rivalry Corp. is completing a non-brokered private placement to raise up to C$5,520,000 and has entered into a debt settlement agreement to restructure its outstanding indebtedness, marking the conclusion of its strategic review process [1][9][10] Private Placement - The private placement involves issuing up to 110,400,000 units at a subscription price of C$0.05 per unit, with each unit consisting of one subordinate voting share and one warrant [2] - A strategic family office has committed to purchase 82,758,620 units for gross proceeds of C$4,137,931 as part of the initial subscription [2] - The first tranche of the private placement is expected to close around October 8, 2025, subject to necessary approvals [3] Use of Proceeds - Proceeds from the private placement will be utilized for corporate development and general working capital purposes [4] Debt Restructuring - The company has entered into a debt settlement agreement to restructure C$12,526,384.88 of its indebtedness through the issuance of 250,527,697 units at the offering price [6] - After the debt settlement, C$8,480,000 of principal amount will remain outstanding under the secured debenture, which will be convertible into shares at a price of $0.10 per share [6] - The maturity date of the secured debenture will be extended to November 14, 2028, with no interest payable until December 31, 2026 [6] Control Person Status - Following the debt restructuring, the senior lender will become a "control person" of the company, requiring shareholder approval, which has been obtained from holders of over 50% of voting rights [7] Conclusion of Strategic Review - The strategic review process initiated in April 2025 has concluded, positioning Rivalry for growth and sustained value creation [9][10]

Core Insights - Rivalry Corp. has reported significant improvements in its financial performance for Q2 2025, including a 62% reduction in operating expenses year-over-year and a 59% narrowing of net loss, indicating the effectiveness of its restructured business model initiated in late 2024 [1][2][7] Financial Performance - Net revenue for Q2 2025 increased by 24% sequentially to CAD 1.6 million, up from CAD 1.3 million in Q1 2025, despite a flat marketing spend [7] - Operating expenses decreased to CAD 3.6 million in Q2 2025 from CAD 9.5 million in Q2 2024, reflecting a substantial focus on cost reduction [7] - The net loss for Q2 2025 was CAD 2.19 million, down from CAD 5.37 million in Q2 2024 and improved from CAD 2.99 million in Q1 2025 [7] Player Economics - Record player monetization was achieved, with net revenue per player increasing by 49% quarter-over-quarter and 210% higher than the historical average prior to the Q4 2024 transformation [8] - Average monthly deposits per player rose by 28% quarter-over-quarter, following a 175% increase in Q1 from historical levels [8] Strategic Initiatives - The company is undergoing a Strategic Review to explore various potential outcomes aimed at maximizing shareholder value, with a focus on enabling growth from a fundamentally stronger base [9] - Rivalry is assessing targeted cost optimization strategies for H2 2025, with a run-rate monthly operating expense of approximately USD 600,000 [14] Operational Focus - The company has emphasized improved player onboarding, retention, and engagement, contributing to enhanced player segmentation and overall performance [5][6] - Adjusted General and Administration expenses were reported at CAD 1.7 million, compared to CAD 2.5 million, indicating effective cost management [7]

Core Points - Rivalry Corp. has successfully revoked the management cease trade order (MCTO) previously granted by the Ontario Securities Commission, allowing management to trade the company's securities again [1][2] - The revocation follows the completion of the company's annual audited financial statements and interim financial statements for the respective periods [1] - All relevant filings are accessible on the SEDAR+ platform [2] Company Overview - Rivalry Corp. is a sports betting and media company that operates globally, focusing on esports, traditional sports, and casino betting [3] - The company is based in Toronto and has a presence in over 20 countries, holding an Isle of Man license and an internet gaming registration in Ontario [3] - Rivalry aims to shape the future of online gambling for a digital generation, leveraging creative execution and brand positioning [3]

Core Viewpoint - Rivalry Corp. has successfully implemented a strategic overhaul, resulting in significant reductions in operating expenses and net loss, while achieving record user metrics in Q2 2025, indicating a strong foundation for scalability and growth [1][2][3]. Financial Performance - Net revenue for Q1 2025 was $1.3 million, consistent with preliminary results [6]. - Operating expenses decreased by 58% year-over-year to $4 million in Q1 2025, down from $9.6 million in Q1 2024 [6]. - Net loss narrowed by 43% to $3.0 million in Q1 2025 from $5.2 million in the prior-year quarter [6]. - Average Customer Acquisition Cost payback across H1 2025 was approximately 1.5 months, reflecting improved funnel conversion and higher player value [6]. User Metrics and Engagement - Q2 2025 set new records with net revenue per player increasing by 49% compared to Q1 2025, and 210% higher than the historical average prior to the Q4 2024 transformation [6]. - Wagers per player rose by 7% quarter-over-quarter, nearly 300% above the pre-rebuild average [6]. - Average monthly deposits per player in Q1 2025 were over 175% higher than the historical average, increasing a further 28% in Q2 2025 [6]. - Monthly deposit frequency per player in Q1 2025 was up 115% over the historical average, rising another 22% in Q2 2025 [6]. Strategic Initiatives - The company is exploring strategic alternatives to maximize shareholder value and evaluating non-dilutive capital options to accelerate growth [8]. - Key initiatives for H2 2025 include deploying a new promo engine, enhancing CRM for high-value player segmentation, and further operating cost reductions [11]. Structural Advantages - Rivalry has established a leaner, more efficient operating model with a lower fixed-cost base and proven user economics [7][9]. - The company possesses strong regulatory licenses in Ontario and the Isle of Man, proprietary technology, and a globally recognized brand, positioning it as a differentiated operator in the online gambling market [9].

Core Viewpoint - Rivalry Corp. has made significant strides in restructuring its operations, resulting in a narrowed net loss and a 17% reduction in operating expenses, positioning the company for a more efficient and financially disciplined future in 2025 [2][3][8] Financial Performance - Net revenue for 2024 was $13.6 million, down from $16.2 million in 2023 [5] - Operating expenses decreased by 17% to $32.2 million, down from $38.8 million [5] - The net loss narrowed to $22.4 million compared to $23.8 million in the previous year [5] - Year-end cash stood at $2.7 million, with a significantly lower run-rate operating expense entering 2025 [5] Strategic Initiatives - The company has implemented a comprehensive overhaul of its cost base, product offerings, player strategy, and operational structure, with early signs of progress emerging in 2025 [3][4] - Key initiatives include the development of a new loyalty program, enhancements to the casino product, and upgrades to the platform's infrastructure [4][5][13] - The breakeven net revenue is now approximately $600,000 USD per month, down from over $2 million USD per month a year ago, with further reductions planned [5] Customer Engagement and Growth - There has been a 40% increase in monthly new first-time depositors since January 2025, despite flat monthly marketing spend [5] - The average payback on cohorts acquired during this period was approximately 1.5 months, indicating improved customer acquisition efficiency [5] Future Outlook - The company is entering the second half of 2025 with a leaner cost structure, stronger product offerings, and improved revenue efficiency [8] - Rivalry continues to explore strategic alternatives aimed at maximizing shareholder value [7][8] Additional Financial Support - Rivalry has secured a senior unsecured loan of $475,000, maturing on September 30, 2025, which will provide additional flexibility for ongoing strategic initiatives [10]

Core Viewpoint - Rivalry Corp. is under a management cease trade order (MCTO) due to delays in filing its annual financial statements for the fiscal year ended December 31, 2024, with an expected completion date by June 30, 2025 [1][2]. Group 1: Management Cease Trade Order (MCTO) - The MCTO was granted by the Ontario Securities Commission (OSC) on May 1, 2025, and will remain in effect until the company is no longer in default regarding its filing requirements [3]. - The company has confirmed that there have been no material changes to the information in the Default Announcement and intends to comply with the alternative information guidelines of NP 12-203 [2]. Group 2: Company Overview - Rivalry Corp. operates Rivalry Limited, a leading sports betting and media company focused on online wagering for esports, traditional sports, and casino games [4]. - The company has held an Isle of Man license since 2018 and is in the process of obtaining additional country licenses, enhancing its regulatory standing in the online gambling sector [4].