SportsHero secures $4.3 million to accelerate HeroPlay expansion across Southeast Asia
SportsHero Limited has received firm commitments for a $4.3 million capital raising via private placement to institutional, sophisticated, and professional investors. The digital gaming company will issue approximately 57.3 million new ordinary shares at $0.075 per share, with strong support from both new and existing shareholders. In a vote of confidence, CEO Tom Lapping has personally committed $300,000 to the placement, subject to shareholder approval, demonstrating alignment with the company’s strategic direction as it accelerates HeroPlay rollout across Southeast Asian markets.
The capital injection comes as SportsHero positions itself to capitalise on early traction with its HeroPlay product through established distribution channels. The SportsHero $4.3m Capital Raising (ASX: SHO) strengthens the company’s balance sheet ahead of negotiations with major telecommunications partners serving hundreds of millions of customers across the region.
How will SportsHero deploy the funds?
The capital will primarily support revenue-generating initiatives focused on commercial expansion and market penetration. SportsHero has outlined a clear allocation strategy that prioritises growth over overhead spending.
The funds raised under the placement will be used for:
- Expand gaming publisher/distributor commercial agreements to enhance product offering across existing segments
- Drive sales efforts to secure additional telco partnerships in both existing and new countries within the Southeast Asian region
- Increase direct B2C marketing spend for non-telco funded advertising channels
- Repayment of the existing drawn down debt facility
- Costs of the raise and working capital
The capital allocation demonstrates a focus on scaling commercial partnerships and marketing reach rather than operational costs. The debt repayment component will reduce the company’s financial obligations, while the majority of funds target activities expected to generate near-term revenue growth.
Placement pricing and structure
The placement was priced at $0.075 per share, representing a 15% discount to the last closing price of $0.088 but a 2.2% premium to the 15-day volume weighted average price of $0.0734. The shares will be issued under SportsHero’s available Listing Rule 7.1A capacity, allowing the company to access capital without requiring shareholder approval for the bulk of the placement.
Settlement is expected to occur on Friday 20 February 2026, with new shares commencing trading on Monday 23 February 2026. CEO Tom Lapping’s $300,000 subscription for 4 million shares requires separate shareholder approval under Listing Rule 10.11 at the company’s next General Meeting.
| Metric | Value |
|---|---|
| Placement Price | $0.075 |
| Discount to Last Close | 15% |
| Premium to 15-Day VWAP | 2.2% |
| New Shares Issued | ~57.3 million |
| CEO Commitment (Subject to Approval) | $300,000 (4m shares) |
What is a private placement and why does it matter for ASX investors?
A private placement allows companies to raise capital quickly by issuing shares to select institutional and sophisticated investors without conducting a general public offer. This approach provides speed and certainty of funding, enabling companies to capitalise on strategic opportunities or strengthen their balance sheet without the time and regulatory requirements of a rights issue or public offer.
The trade-off is dilution for existing shareholders who are not participating in the placement. However, the pricing relative to recent trading provides context for assessing value. SportsHero’s placement at a premium to the 15-day VWAP, combined with participation from institutional investors, suggests market confidence in the company’s near-term strategy and commercial pipeline.
For existing shareholders, the CEO’s personal commitment of $300,000 provides a signal of management conviction, as executives typically have detailed visibility of internal performance metrics and partnership negotiations not yet disclosed to the market.
Concurrent sell-down by long-term shareholders
Concurrent with the placement, Joint Lead Managers facilitated a sell-down of approximately 25 million existing shares at the Offer Price, equivalent to approximately $1.875 million. The announcement clarifies these sellers are three long-term private shareholders, not founders, directors, or internal stakeholders of the company.
This distinction is important for investors assessing the signal quality of the transaction. The sell-down represents orderly liquidity provision for early-stage investors rather than insider selling by those with current operational knowledge. The fact that institutional demand was sufficient to absorb both new issuance and secondary selling at the same price point indicates genuine buyer interest in the SportsHero $4.3m Capital Raising (ASX: SHO).
CEO perspective on the strategic rationale
Management has framed the capital raising as a partnership enabler rather than simply a funding mechanism, suggesting active commercial negotiations are underway with major telecommunications providers.
Tom Lapping, CEO, SportsHero
“Maintaining a strong balance sheet and demonstrating financial strength is critical when partnering with global telcos serving hundreds of millions of customers. This placement strengthens our financial position and helps build confidence that SportsHero is the right partner to deliver on their gaming strategy.”
The statement highlights the importance of balance sheet strength when negotiating with large-scale distribution partners. Telecommunications companies evaluating gaming partnerships with SportsHero are likely to assess the company’s financial stability as part of their due diligence process, particularly when considering integration of third-party platforms that will be marketed to their subscriber bases.
Adviser fees and options
Activ8 Capital Advisers and Wallabi Group Pty Ltd acted as Joint Lead Managers for the placement and will receive a cash fee of 6% commission on capital raised. Additionally, 15 million broker and adviser options will be issued with a strike price of $0.10 and an expiry 3 years from issue date.
The options will be issued under the company’s available placement capacity under ASX Listing Rule 7.1. The $0.10 strike price represents a 33% premium to the placement price, providing advisers with upside exposure contingent on share price appreciation. This structure aligns adviser interests with shareholder value creation, as the options only deliver value if the share price exceeds the strike price before expiry.
What’s next for SportsHero?
The company is now positioned to accelerate HeroPlay rollout through its established distribution channels across Southeast Asia. Management has indicated the focus will be on expanding gaming publisher and distributor agreements while driving sales efforts to secure additional telecommunications partnerships in both existing and new markets within the region.
The increased direct B2C marketing spend for non-telco funded advertising channels suggests the company is building parallel revenue streams that do not rely exclusively on partnership-driven distribution. This diversification could provide more stable revenue growth as the company scales.
Near-term catalysts include new partnership announcements, commercial traction metrics from expanded marketing spend, and the General Meeting required to approve CEO Tom Lapping’s share issuance. Investors will be watching for updates on telecommunications partner additions and user acquisition metrics as the capital is deployed across the stated use of funds.
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