Sec Form 13D Filing - RPII DK LLC filing for DraftKings Holdings Inc. (DKNG) - 2020-06-25

Insider filing report for Changes in Beneficial Ownership

  • Schedule 13G & 13D forms are used to report a party's ownership of stock which exceeds 5% of a company's total stock issue.
  • Schedule 13G is a shorter version of Schedule 13D with fewer reporting requirements.
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 1)*

 

 

DraftKings Inc.

(Name of Issuer)

Class A Common Stock, par value $0.0001 per share

(Title of Class of Securities)

26142R104

(CUSIP Number)

Alfred J. Chianese, Esq.

The Raine Group LLC

65 East 55th Street, 24th Floor

New York, NY 10022

(212) 603-5554

with a copy to:

Stephen B. Amdur

Pillsbury Winthrop Shaw Pittman LLP

31 West 52nd Street

New York, NY 10019

(212) 858-1000

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

June 23, 2020

(Date of Event Which Requires Filing of This Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.  ☐

 

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

 

 

 

*

The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 

CUSIP No. 26142R104    Schedule 13D    Page 2 of 14 Pages

 

  (1)    

  Names of reporting persons

 

  RPII DK LLC

  (2)  

  Check the appropriate box if a member of a group (see instructions)

  (a)  ☐        (b)  ☐

 

  (3)  

  SEC use only

 

  (4)  

  Source of funds (see instructions):

 

  OO

  (5)  

  Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  (6)  

  Citizenship or place or organization

 

  Delaware, USA

Number of

shares

beneficially  

owned by

each

reporting

person

with:

      (7)     

  Sole voting power:

 

  0

     (8)   

  Shared voting power:

 

  21,868,062

     (9)   

  Sole dispositive power:

 

  0

   (10)   

  Shared dispositive power:

 

  21,868,062

(11)    

  Aggregate amount beneficially owned by each reporting person:

 

  21,868,062

(12)  

  Check if the aggregate amount in Row (11) excludes certain shares (see instructions)

 

(13)  

  Percent of class represented by amount in Row (11):

 

  6.2%1

(14)  

  Type of reporting person (see instructions):

 

  OO

 

1 

Calculations of the percentage of the shares of Class A Common Stock beneficially owned assumes 334,590,958 shares of Class A Common Stock outstanding, based on information included in the Prospectus dated June 18, 2020 (the “Prospectus”) filed by the Issuer with the Securities and Exchange Commission pursuant to Rule 424(b)(4) under the Securities Act of 1933, that 16,000,000 shares of Class A Common Stock offered by the Issuer pursuant to the Prospectus are issued and outstanding, that certain selling stockholders exercised 2,245,324 vested stock options and that the shares of Class A Common Stock underlying such stock options are issued and outstanding, and that all of the shares underlying the Warrants (as defined in the Original Schedule 13D (as defined below)) to purchase 152,190 shares of Class A Common Stock have been exercised and are outstanding.

CUSIP No. 26142R104    Schedule 13D    Page 3 of 14 Pages

 

  (1)    

  Names of reporting persons

 

  The Raine Group LLC

  (2)  

  Check the appropriate box if a member of a group (see instructions)

  (a)  ☐        (b)  ☐

 

  (3)  

  SEC use only

 

  (4)  

  Source of funds (see instructions):

 

  OO

  (5)  

  Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  (6)  

  Citizenship or place or organization

 

  Delaware, USA

Number of

shares

beneficially  

owned by

each

reporting

person

with:

      (7)     

  Sole voting power:

 

  0

     (8)   

  Shared voting power:

 

  21,868,062

     (9)   

  Sole dispositive power:

 

  0

   (10)   

  Shared dispositive power:

 

  21,868,062

(11)    

  Aggregate amount beneficially owned by each reporting person:

 

  21,868,062

(12)  

  Check if the aggregate amount in Row (11) excludes certain shares (see instructions)

 

(13)  

  Percent of class represented by amount in Row (11):

 

  6.2%1

(14)  

  Type of reporting person (see instructions):

 

  HC

CUSIP No. 26142R104    Schedule 13D    Page 4 of 14 Pages

 

  (1)    

  Names of reporting persons

 

  Raine Capital LLC

  (2)  

  Check the appropriate box if a member of a group (see instructions)

  (a)  ☐        (b)  ☐

 

  (3)  

  SEC use only

 

  (4)  

  Source of funds (see instructions):

 

  OO

  (5)  

  Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  (6)  

  Citizenship or place or organization

 

  Delaware, USA

Number of

shares

beneficially  

owned by

each

reporting

person

with:

      (7)     

  Sole voting power:

 

  0

     (8)   

  Shared voting power:

 

  21,868,062

     (9)   

  Sole dispositive power:

 

  0

   (10)   

  Shared dispositive power:

 

  21,868,062

(11)    

  Aggregate amount beneficially owned by each reporting person:

 

  21,868,062

(12)  

  Check if the aggregate amount in Row (11) excludes certain shares (see instructions)

 

(13)  

  Percent of class represented by amount in Row (11):

 

  6.2%1

(14)  

  Type of reporting person (see instructions):

 

  IA

CUSIP No. 26142R104    Schedule 13D    Page 5 of 14 Pages

 

  (1)    

  Names of reporting persons

 

  Raine Partners II LP

  (2)  

  Check the appropriate box if a member of a group (see instructions)

  (a)  ☐        (b)  ☐

 

  (3)  

  SEC use only

 

  (4)  

  Source of funds (see instructions):

 

  OO

  (5)  

  Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  (6)  

  Citizenship or place or organization

 

  Delaware, USA

Number of

shares

beneficially  

owned by

each

reporting

person

with:

      (7)     

  Sole voting power:

 

  0

     (8)   

  Shared voting power:

 

  21,868,062

     (9)   

  Sole dispositive power:

 

  0

   (10)   

  Shared dispositive power:

 

  21,868,062

(11)    

  Aggregate amount beneficially owned by each reporting person:

 

  21,868,062

(12)  

  Check if the aggregate amount in Row (11) excludes certain shares (see instructions)

 

(13)  

  Percent of class represented by amount in Row (11):

 

  6.2%1

(14)  

  Type of reporting person (see instructions):

 

  PN

CUSIP No. 26142R104    Schedule 13D    Page 6 of 14 Pages

 

  (1)    

  Names of reporting persons

 

  Raine Associates II LP

  (2)  

  Check the appropriate box if a member of a group (see instructions)

  (a)  ☐        (b)  ☐

 

  (3)  

  SEC use only

 

  (4)  

  Source of funds (see instructions):

 

  OO

  (5)  

  Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  (6)  

  Citizenship or place or organization

 

  Delaware, USA

Number of

shares

beneficially  

owned by

each

reporting

person

with:

      (7)     

  Sole voting power:

 

  0

     (8)   

  Shared voting power:

 

  21,868,062

     (9)   

  Sole dispositive power:

 

  0

   (10)   

  Shared dispositive power:

 

  21,868,062

(11)    

  Aggregate amount beneficially owned by each reporting person:

 

  21,868,062

(12)  

  Check if the aggregate amount in Row (11) excludes certain shares (see instructions)

 

(13)  

  Percent of class represented by amount in Row (11):

 

  6.2%1

(14)  

  Type of reporting person (see instructions):

 

  PN

CUSIP No. 26142R104    Schedule 13D    Page 7 of 14 Pages

 

  (1)    

  Names of reporting persons

 

  Raine Management LLC

  (2)  

  Check the appropriate box if a member of a group (see instructions)

  (a)  ☐    &# xA0;   (b)  ☐

 

  (3)  

  SEC use only

 

  (4)  

  Source of funds (see instructions):

 

  OO

  (5)  

  Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  (6)  

  Citizenship or place or organization

 

  Delaware, USA

Number of

shares

beneficially  

owned by

each

reporting

person

with:

      (7)     

  Sole voting power:

 

  0

     (8)   

  Shared voting power:

 

  21,868,062

     (9)   

  Sole dispositive power:

 

  0

   (10)   

  Shared dispositive power:

 

  21,868,062

(11)    

  Aggregate amount beneficially owned by each reporting person:

 

  21,868,062

(12)  

  Check if the aggregate amount in Row (11) excludes certain shares (see instructions)

 

(13)  

  Percent of class represented by amount in Row (11):

 

  6.2%1

(14)  

  Type of reporting person (see instructions):

 

  OO

 

CUSIP No. 26142R104    Schedule 13D    Page 8 of 14 Pages

 

  (1)    

  Names of reporting persons

 

  John S. Salter

  (2)  

  Check the appropriate box if a member of a group (see instructions)

  (a)  ☐        (b)  ☐

 

  (3)  

  SEC use only

 

  (4)  

  Source of funds (see instructions):

 

  OO

  (5)  

  Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  (6)  

  Citizenship or place or organization:

 

  USA

Number of

shares

beneficially  

owned by

each

reporting

person

with:

      (7)     

  Sole voting power:

 

  0

     (8)   

  Shared voting power:

 

  21,868,062

     (9)   

  Sole dispositive power:

 

  0

   (10)   

  Shared dispositive power:

 

  21,868,062

(11)    

  Aggregate amount beneficially owned by each reporting person:

 

  21,868,062

(12)  

  Check if the aggregate amount in Row (11) excludes certain shares (see instructions)

 

(13)  

  Percent of class represented by amount in Row (11):

 

  6.2%1

(14)  

  Type of reporting person (see instructions):

 

  IN

CUSIP No. 26142R104    Schedule 13D    Page 9 of 14 Pages

 

  (1)    

  Names of reporting persons

 

  Jeffrey A. Sine

  (2)  

  Check the appropriate box if a member of a group (see instructions)

  (a)  ☐        (b)  ☐

 

  (3)  

  SEC use only

 

  (4)  

  Source of funds (see instructions)

 

  OO

  (5)  

  Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  (6)  

  Citizenship or place or organization

 

  USA

< td valign="top" style="BORDER-BOTTOM:1px solid #000000">  (7)  

Number of

shares

beneficially  

owned by

each

reporting

person

with:

      

  Sole voting power:

 

  0

     (8)   

  Shared voting power:

 

  21,868,062

     (9)   

  Sole dispositive power:

 

  0

   (10)   

  Shared dispositive power:

 

  21,868,062

(11)    

  Aggregate amount beneficially owned by each reporting person:

 

  21,868,062

(12)  

  Check if the aggregate amount in Row (11) excludes certain shares (see instructions)

 

(13)  

  Percent of class represented by amount in Row (11):

 

  6.2%1

(14)  

  Type of reporting person (see instructions):

 

  IN

 

CUSIP No. 26142R104    Schedule 13D    Page 10 of 14 Pages

 

  (1)    

  Names of reporting persons

 

  Joseph Ravitch

  (2)  

  Check the appropriate box if a member of a group (see instructions)

  (a)  ☐        (b)  ☐

 

  (3)  

  SEC use only

 

  (4)  

  Source of funds (see instructions):

 

  OO

  (5)  

  Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  (6)  

  Citizenship or place or organization

 

  USA

Number of

shares

beneficially  

owned by

each

reporting

person

with:

      (7)     

  Sole voting power:

 

  0

     (8)   

  Shared voting power:

 

  21,868,062

     (9)   

  Sole dispositive power:

 

  0

   (10)   

  Shared dispositive power:

 

  21,868,062

(11)    

  Aggregate amount beneficially owned by each reporting person:

 

  21,868,062

(12)  

  Check if the aggregate amount in Row (11) excludes certain shares (see instructions)

 

(13)  

  Percent of class represented by amount in Row (11):

 

  6.2%1

(14)  

  Type of reporting person (see instructions):

 

  IN

CUSIP No. 26142R104    Schedule 13D    Page 11 of 14 Pages

 

  (1)    

  Names of reporting persons

 

  Brandon Gardner

  (2)  

  Check the appropriate box if a member of a group (see instructions)

  (a)  ☐        (b)  ☐

 

  (3)  

  SEC use only

 

  (4)  

  Source of funds (see instructions):

 

  OO

  (5)  

  Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  (6)  

  Citizenship or place or organization

 

  USA

Number of

shares

beneficially  

owned by

each

reporting

person

with:

      (7)     

  Sole voting power:

 

  0

     (8)   

  Shared voting power:

 

  21,868,062

     (9)   

  Sole dispositive power:

 

  0

   (10)   

  Shared dispositive power:

 

  21,868,062

(11)    

  Aggregate amount beneficially owned by each reporting person:

 

  21,868,062

(12)  

  Check if the aggregate amount in Row (11) excludes certain shares (see instructions)

 

(13)  

  Percent of class represented by amount in Row (11):

 

  6.2%1

(14)  

  Type of reporting person (see instructions):

 

  IN

CUSIP No. 26142R104    Schedule 13D    Page 12 of 14 Pages

 

  (1)    

  Names of reporting persons

 

  Deborah Mei

  (2)  

  Check the appropriate box if a member of a group (see instructions)

  (a)  ☐        (b)  ☐

 

  (3)  

  SEC use only

 

  (4)  

  Source of funds (see instructions):

 

  OO

  (5)  

  Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  (6)  

  Citizenship or place or organization

 

  USA

Number of

shares

beneficially  

owned by

each

reporting

person

with:

      (7)     

  Sole voting power:

 

  0

     (8)   

  Shared voting power:

 

  21,868,062

     (9)   

  Sole dispositive power:

 

  0

   (10)   

  Shared dispositive power:

 

  21,868,062

(11)    

  Aggregate amount beneficially owned by each reporting person:

 

  21,868,062

(12)  

  Check if the aggregate amount in Row (11) excludes certain shares (see instructions)

 

(13)  

  Percent of class represented by amount in Row (11):

 

  6.2%1

(14)  

  Type of reporting person (see instructions):

 

  IN

CUSIP No. 26142R104    Schedule 13D    Page 13 of 14 Pages

 

Item 1. Security and Issuer.

This Amendment No. 1 (this “Amendment No. 1”) to Schedule 13D relates to the Class A Common Stock, par value $0.0001 per share (the “Class A Common Stock”), of DraftKings Inc., a Nevada corporation (the “Issuer”), and amends and supplements the initial statement on Schedule 13D filed on May 1, 2020 (the “Original Schedule 13D”).

Each Item below amends and supplements the information disclosed under the corresponding Item of the Original Schedule 13D as described below. Except as specifically provided herein, this Amendment No. 1 does not modify any of the information previously reported in the Original Schedule 13D. Unless otherwise indicated herein, capitalized terms used but not defined in this Amendment No. 1 shall have the same meanings herein as are ascribed to such terms in the Original Schedule 13D. Information given in response to each Item shall be deemed incorporated by reference in all other Items, as applicable.

Item 2. Identity and Background.

The list of Covered Persons (as defined in the Original Schedule 13D) in Annex A to the Original Schedule 13D is hereby amended and restated with Annex A attached to this Amendment No. 1 to remove Irene Willard as a Covered Person and is incorporated herein by reference.

Item 3. Source and Amount of Funds or Other Consideration.

Item 3 is of the Original Schedule 13D is hereby amended and supplemented by adding the following:

On May 21, 2020, the Earnout Shares (as defined in the Original Schedule 13D) were released from escrow and distributed to the Reporting Persons, pursuant to the Business Combination Agreement.

Item 4. Purpose of Transaction.

Item 4 of the Original Schedule 13D is hereby amended and supplemented by adding the following:

The information set forth in Item 5(c) of this Amendment No. 1 is incorporated herein by reference.

Item 5. Interest in Securities of the Issuer.

Paragraphs (a), (b) and (c) of Item 5 of the Original Schedule 13D are hereby amended and supplemented as follows:

The information contained in Items 2 and 3 of this Amendment No. 1 is incorporated herein by reference.

(a), (b) The responses of the Reporting Persons with respect to Rows 7 through 13 of the respective cover pages of the individual Reporting Persons to this Amendment No. 1 are incorporated herein by reference.

(c) In connection with an underwritten public offering of the Issuer, on June 23, 2020, the Reporting persons sold 3,347,203 shares of Class A Common Stock at a price of $38.80 per share, resulting in net proceeds to the Reporting Persons of approximately $129.9 million (the “Sale”). The Sale was made pursuant to the Prospectus, under which the Issuer offered 16,000,000 shares of Class A Common Stock and certain selling stockholders, including the Reporting Persons, offered 24,000,000 shares of Class A Common Stock.

CUSIP No. 26142R104    Schedule 13D    Page 14 of 14 Pages

 

Except as set forth in this Amendment No. 1, none of the Reporting Persons nor, to the best of its knowledge, any of the Covered Persons has engaged in any transaction with respect to the Class A Common Stock during the sixty days prior to the date of filing of this Amendment No. 1.

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to the Securities of the Issuer.

Item 6 of the Original Schedule 13D is hereby amended and supplemented by adding the following:

The information set forth in Item 5(c) of this Amendment No 1. is incorporated herein by reference.

 

SIGNATURES

After reasonable inquiry and to the best knowledge and belief of the undersigned, such person certifies that the information set forth in this Statement with respect to such person is true, complete and correct.

Dated: June 24, 2020

 

RPII DK LLC
By:  

/s/ Alfred J. Chianese

  Name:   Alfred J. Chianese
  Title:   Vice President
RAINE PARTNERS II LP
By:   Raine Associates II LP, its general partner
By:   Raine Management LLC, its general partner
By:  

/s/ Alfred J. Chianese

  Name:   Alfred J. Chianese
  Title:   Vice President
RAINE CAPITAL LLC
By:  

/s/ Alfred J. Chianese

  Name:   Alfred J. Chianese
  Title:   Vice President
RAINE ASSOCIATES II LP
By:   Raine Management LLC, its general partner
By:  

/s/ Alfred J. Chianese

  Name:   Alfred J. Chianese
  Title:   Vice President
RAINE MANAGEMENT LLC
By:  

/s/ Alfred J. Chianese

  Name:   Alfred J. Chianese
  Title:   Vice President

 

 

[Signature Page to Schedule 13D]

THE RAINE GROUP LLC
By:  

/s/ Alfred J. Chianese

  Name:   Alfred J. Chianese
  Title:   Vice President

*

John S. Salter

*

Jeffrey A. Sine

*

Joseph Ravitch

*

Brandon Gardner

*

Deborah Mei
*By:  

/s/ Alfred J. Chianese

  Name: Alfred J. Chianese
  Title: Attorney-In-Fact

 

[Signature Page to Schedule 13D]

Annex A

The name, present principal occupation or employment, and citizenship of each person (collectively, the “Covered Persons”) who may be deemed to exert control over the Reporting Persons are set forth below. The business address of each Covered Person is 65 East 55th Street, 24th Floor, New York, NY 10022.

 

Name

   

The Raine Group LLC

Present Principal Occupation or Employment

   

Citizenship

Joseph Ravitch    Partner and Co-Founder    U.S.
Jeffrey A. Sine    Partner and Co-Founder    U.S.
Brandon Gardner    Partner, Co-Founder, President and Chief Operating Officer    U.S.
John S. Salter    Partner and Co-Founder    U.S.
Deborah Mei    Partner and Co-Founder    U.S.
Alfred J. Chianese    General Counsel and Vice President    U.S.
Joseph Beyrouty    Chief Financial Officer, Management Company and Vice President    U.S.