Shares of video-gaming machine supplier Accel Entertainment (NYSE:ACEL) rose 13% this morning before settling to a gain of 8%, as of 1:00 p.m. EDT.
After announcing a common stock offering earlier this week, investors had driven the stock down 25%. Today, the company announced the shares would be offered at a price of $10.50 per share, just about where shares closed yesterday's trading session. Investors were satisfied and cut some of the losses seen earlier in the week.
The supplier of video-gaming terminals to Illinois casinos announced a partnership with sports-betting company DraftKings (NASDAQ:DKNG) earlier this month, giving investors other positive news to consider.
Accel is selling eight-million shares, bringing in $84 million the company plans to use for general corporate purposes. The offering is expected to close early next week.
The company had a difficult second quarter ending June 30, 2020, as the Illinois Gaming Board shut down all video-gaming terminals on March 16 due to the COVID-19 pandemic. Video gaming restarted in July with additional safety protocols, including dividers and more spacing between games. Accel said that within three days, 90% of its games were back operating.
Despite the impacts from the pandemic, Accel has added 33% more locations compared to the year-ago period and has 37% more gaming machines. It also now has an exclusive agreement where DraftKings will compensate Accel to promote its sports-betting content on Accel gaming machines. Analysts believe the deal will increase traffic and revenue for Accel.