Irish and UK-facing operator Seaniemac has denied reports of its alleged spiralling debt problems, stating that the company is receiving investment on an “on-going basis” and that it has a sustainable business model in place.
[dropcap]O[/dropcap]nline betting operator Seaniemac has hit back at reports claiming that the business is facing financial troubles, with the CEO of the company claiming that reports of debt problems have been overstated.
In a statement sent to iGaming Business, CEO Shane O’Driscoll said that reports of a $10m cash flow problem in the Irish Independent had been based on inaccurate reporting.
“The article overstated the amount of loss incurred by Seaniemac UK by incorrectly including $7m in losses incurred by the US public company before the Seaniemac acquisition,” O’Driscoll said.
“Seaniemac has spent close to $3m to date in brand building and day to day operating expenses.”
Earlier this year, the company agreed a deal to acquire loss-making operator Apollo Betting and Gaming for $2m, a move O’Driscoll said “endorses our commitment to the business”.
While it is completely true that we rely on outside financing to grow and build our brand the suggestion that we did not have a responsible financing plan in place was not balanced
But the firm is facing financial problems of its own after expenses soared in the final quarter of last year, forcing the business to rely on a mixture of loans from stockholders and directors to cover ongoing operational costs.
In a statement to shareholders, the firm’s board cautioned: “The company continues to explore various financing alternatives, including debt and equity financings and strategic partnerships, as well as trying to generate additional revenue.
“If the company is unable to obtain additional funding and improve its operations, the company’s financial operations may be materially adversely affected and the company may not be able to continue operations.”
O’Driscoll said that the company was receiving investment on an “on-going basis”, including fresh cash injections from existing investors in July and August this year.
“While it is completely true that we rely on outside financing to grow and build our brand the suggestion that we did not have a responsible financing plan in place was not balanced,” he continued.
“Like any start-up we have depended on investment to launch our business and will rely on continued investment to grow.”
He added that the company was set to re-launch its operations with a new and improved betting platform supplied by Optima, which will go live on 16 September.