Youbet.com has announced a stock offering of 6.2 million shares in an effort to pay off debt assumed when the company acquired United Tote earlier this year.Net proceeds of the offering should raise about $18.5 million, the company said, and will be used to fund Youbet's payment obligations on $10.2 million in promissory notes, as well as for other corporate purposes. Shares will be offered at $3.25 each.United Tote was acquired by Youbet in February for an announced purchase price of $31.9 million, plus the assumption of approximately $14.7 million in United Tote's secured debt.
Youbet is a provider of technology and pari-mutuel horse racing content for consumers through Internet and telephone platforms, and is a supplier of totalizator systems, terminals and other pari-mutuel wagering services and systems to the pari-mutuel industry through its United Tote subsidiary.Youbet's International Racing Group subsidiary is the only pari-mutuel rebate provider to be licensed by a U.S. racing regulatory jurisdiction.
