Rush Street Interactive executives sell 10 million shares in secondary offering

Rush Street Interactive Inc. (NYSE: RSI) announced a secondary public offering of 10 million Class A common shares by selling stockholders including Executive Chairman Neil Bluhm, CEO Richard Schwartz, and COO Mattias Stetz.

The selling stockholders are offering shares through trusts they beneficially own, with each selling less than 10% of their respective holdings. The sellers stated the offering is for personal financial planning and estate planning purposes. Underwriters have a 30-day option to purchase up to an additional 1.5 million shares.

Wells Fargo Securities and Morgan Stanley serve as joint book-running managers for the offering. RSI will not receive proceeds from the share sales but will cover associated costs excluding underwriting discounts and commissions.

Following completion of the offering, Bluhm and related entities will retain over 40% of RSI stock, maintaining their position as the largest shareholder. The offering depends on market conditions with no assurance of completion timing.

RSI plans to repurchase $30 million worth of shares from underwriters at the same price paid to selling stockholders, funding the purchase with cash on hand. The repurchased shares will be cancelled. The company's board approved a new $100 million stock repurchase plan to replace the existing program.

The online casino and sports betting company operates in 15 U.S. states and international markets including Colombia, Ontario, Mexico and Peru through brands BetRivers, PlaySugarHouse and RushBet.

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