SCHEDULE: Divisadero Street Capital Boosts Rush Street Interactive Stake

Divisadero Street Capital Management and related entities report a 6.0% beneficial ownership stake in Rush Street Interactive, Inc. Class A common stock.

Summary

• Divisadero Street Capital Management, LP, William Zolezzi, and Divisadero Street Capital, LLC collectively report beneficial ownership of 5,865,890 shares of Rush Street Interactive, Inc. Class A common stock.
• This aggregate ownership represents a 6.0% stake in the company's Class A common stock.
• Divisadero Street Partners, L.P. and Divisadero Street Partners GP, LLC report beneficial ownership of 5,375,930 shares, which constitutes a 5.5% stake.
• The filing is an Amendment No. 4 to a previous Schedule 13G, updating beneficial ownership information.
• The reporting persons certify that the securities were not acquired and are not held for the purpose of changing or influencing control of Rush Street Interactive, Inc.

Sentiment

Score: 5

Explanation: The filing is a factual report of beneficial ownership and does not contain information that would significantly alter the sentiment towards the company, beyond confirming institutional interest.

Positives

• Increased institutional investor interest in Rush Street Interactive, Inc. as evidenced by the significant stake held by Divisadero Street Capital Management and its affiliates.
• The reporting group, led by Divisadero Street Capital Management, LP, holds a substantial 6.0% stake, indicating a notable commitment to the company as a passive investment.

Risks

• The filing does not introduce new specific risks for Rush Street Interactive, Inc.; it primarily reports beneficial ownership.

Future Outlook

This filing is a beneficial ownership report and does not contain forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

The filing reflects continued institutional investor interest in companies within the online gaming and interactive entertainment sector, such as Rush Street Interactive, Inc. This type of passive investment indicates a belief in the long-term value proposition of the company within its competitive landscape.

Related Party Transactions

• The filing details the beneficial ownership structure among Divisadero Street Capital Management, LP, William Zolezzi, Divisadero Street Partners, L.P., Divisadero Street Partners GP, LLC, and Divisadero Street Capital, LLC, indicating a group acting in concert.
• All reported securities are directly owned by advisory clients of Divisadero Street Capital Management, LP, with Divisadero Street Partners, L.P. being the only client identified as beneficially owning more than 5% of the Class A common stock.

Stakeholder Impact

• Shareholders may view the significant institutional ownership as a positive signal of confidence in the company's long-term prospects, potentially influencing market perception.

Key Dates

Keywords

Rush Street Interactive, RSI, Divisadero Street Capital, Beneficial Ownership, Institutional Investment, Class A Common Stock, SEC Filing, Schedule 13G, Online Gaming, Gambling