Slinger Bag, the recently founded supplier of portable tennis ball launchers, reports an oversubscribed round of financing through a private placement of $11 million, giving it a valuation of around $220 million. The new fudning is intended to support its vision to become “a leading connected sports company” with key hires after a major increase in sales and profitability. Mike Ballardie, the former European director of Wilson for racquet sports and former president of Prince who is running the company, said the new funds are also providing support for its planned uplisting. It is already listed on the OTCQ8 Venture Market in the U.S.
The “game improvement” company is preparing to release an app driven by Artificial Intelligence later this summer. It is currently field-testing new ball launchers for pickleball, padel and soft tennis, which it expects to bring to the market in the 2022 calendar year. Slinger also plans to introduce ball launchers for baseball, softball, cricket and other high-participation ball sports over the next three years.
Slinger Bag is projecting sales of $18 million for the current financial year. It posted revenues of $11.2 million in the fiscal year ended April 30, selling some 20,000 tennis ball launchers in its first full year of operations. It also signed 50 distribution agreements in six continents, and the brand is now distributed in 50 markets.
The gross profit for the last year amounted to $3.1 million compared with a loss of $684,718 the year earlier, while the company’s net loss widened to $18.6 million from a $9.3 million. The loss included non-cash interest expenses of $12.5 million and charges of $3 million for extinguishment of debt. In the fourth quarter alone, Slinger generated gross profit of $1.6 million on sales of $3.5 million, selling 5,500 launchers. in the country
Noting that its game improvement technology has attracted new players, Slinger Bag says it was buoyed by a major increase in the tennis market in the U.S. during the Covid-19 pandemic. It mentioned increases in 2020 of 40 percent in racquet sales, 44 percent in the number of new players, and 20 percent in overall tennis participation.
The latest private round of financing was made through a private placement with several leading investment funds focusing on small-cap firms as well as several individual investors with a high net worth. Spartan Capital Securities acted as lead placement agent, accompanied by Revere Securities as co-placement agent.