Beleaguered Irish betting operator SeanieMac is seeking financial life support after the company bled an accumulated to almost $9.93 million worth of losses.
The Independent reported that SeanieMac, which was founded by Donegal hotelier and former GAA player Brian McEniff’s son Sean McEniff, sent an SOS from outside investors as it warned that it may cease operating if it can’t raise any additional funds.
SeanieMac said it needs $500,000 (€441,000) to pay for operational costs such as its website and marketing expenses.
“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,” the company warned.
Second quarter figures of SeanieMac in 2016 showed that its gross gaming revenue for the second quarter rose by 400 percent to $218,456 compared to $45,910 in the quarter to the end of June last year, thanks to the $2 million purchase of ApolloBet.
But SeanieMac’s revenue was more than offset by its expenses, which rose to almost $517,000 in the last quarter from $107,000 in April to June 2015 period. Its interest expense, including the amortization of loan costs, also spiked. It rose to $586,000 from just under $71,0000.
Seaniemac’s losses for the second quarter was pegged at $911,000, bringing the accumulated loss since Seaniemac’s launch in 2013 to more than $9.93m.
While the firm is in talks with potential investors to help bankroll its own continuing operation, SenieMac said it cannot give an assurance the ongoing talks will be successful.
It added that the group is likely to incur losses and negative cash flow for the foreseeable future.
“Management intends to finance operating costs over the next 12 months with existing cash on hand, loans from stockholders and directors, and a possible private placement of our securities,” according to its latest set of results. “The company continues to explore various financing alternatives, including debt and equity financings and strategic partnerships, as well as trying to generate additional revenue,” it added.