Today's News |
Vancouver-based Online Gaming Company FansUnite Completes Acquisition of Askott Entertainment
Thursday, August 27, 2020Company Profile | Follow Company
Vancouver, BC, August 26, 2020--(T-Net)--FansUnite Entertainment Inc. (CSE: FANS) announced that it has completed its acquisition of Askott Entertainment Inc., creating a leader in the Canadian gaming sector.
Business Highlights
The acquisition of Askott supports FansUnite's vision to become a leading technology platform that can serve a growing online gaming market.
Askott has a rich operating history dating back to 2013 with a focus on creating both B2B and B2C betting products in the rapidly growing esports industry.
Most recently, Askott's B2B Chameleon Gaming platform was shortlisted for the 2020 EGR B2B Awards for Esports Betting Supplier of the Year. With Askott Entertainment being a first mover in the esports sector, FansUnite will now be able to accelerate their trajectory by providing customers with a broader range of betting options that includes sports, esports, casino games and many others.
"With the Askott acquisition now complete, FansUnite is well positioned to become a leader in the global I-gaming market," said Darius Eghdami, President of FansUnite. "The combined forces of both companies will bring together a portfolio of B2B and B2C assets that are unique, industry leading, and support our goal of growing our global footprint in the fast growing gaming industry."
"We are pleased to announce the closing of this transaction as it represents one of our biggest milestones to date and allows us to turn our attention to the future," said Scott Burton, CEO of FansUnite. "Our intention as a company has always been to scale and capture market share quickly. With that in mind we have brought together a world class team of executives and board members that have led some of the largest gaming companies in the world. With their help, we will look to execute on our vision of becoming a leader in the global gaming market."
Management and Board Transition
About FansUnite Entertainment Inc.
FansUnite is a sports and entertainment company, focusing on technology related to regulated and lawful online gaming in sports, esports and casino. In addition to providing underlying technology, FansUnite operates multiple growing B2C brands. FansUnite adds value by acquiring and growing its gaming portfolio with high growth assets in new or developing markets.
Material Terms of the Transaction
In addition, former holders of 125,000 common share purchase warrants of Askott are now entitled to purchase an aggregate of up to 239,912 FansUnite Shares at an exercise price of approximately C$0.32 per FansUnite Share with expiry date on May 31, 2023 (the "FansUnite Warrants") and former holders of 1,820,000 stock options of Askott are now entitled to purchase an aggregate of up to 3,493,122 FansUnite Shares at exercise prices ranging from approximately C$0.26 to C$0.32 per FansUnite Share, with expiry dates between September 27, 2020 and January 1, 2025 (the "FansUnite Options").
In addition, the former holders of Subscription Receipts are now entitled to purchase an aggregate of up to 6,262,307 FansUnite Shares at an exercise price of C$0.55 per FansUnite Share with expiry date on August 11, 2022 pursuant to the share purchase warrants issued in connection with the Askott Private Placement and the former holders of the broker and advisory warrants issued in connection with the Askott Private Placement are now entitled to purchase an aggregate of up to 779,762 FansUnite Shares at an exercise price of C$0.55, with expiry date on July 21, 2022 (collectively, the "FansUnite Financing Warrants").
The 12,712,115 FansUnite Shares issued upon exchange of the Askott Shares issued in connection with the Askott Private Placement, the FansUnite Financing Warrants, the FansUnite Warrants, the FansUnite Options, and the FansUnite Shares issuable upon exercise of all such warrants and options will not be subject to any statutory hold periods under applicable Canadian securities laws.
The 71,171,212 FansUnite Shares issued to existing Askott shareholders pursuant to the Transaction are subject to the following contractual hold periods: (i) 10% are not be subject to any hold period, (ii) 15% are subject to a hold period expiring September 5, 2020, (iii) 25% are subject to a hold period expiring November 5, 2020, (iv) 25% are subject to a hold period expiring February 5, 2021, and (v) 25% are subject to a hold period expiring May 5, 2021.
The M&A Advisory Shares are subject to resale restrictions expiring on December 12, 2020 pursuant to Canadian securities laws.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
FORWARD-LOOKING STATEMENTS: Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "believes," "belief," "expects," "intends," "anticipates," "potential," "should," "may," "will," "plans," "continue" or similar expressions to be uncertain and forward-looking. Forward-looking statements may include, without limitation, statements relating to future outlook and anticipated events, the Company's ability to become a leading technology platform and a leader in the global I-gaming market, and to serve the gaming market; the potential growth of the Company and the gaming market; the increased number of betting options; the ability of the Company to scale its B2B arm and maintain its B2C platforms; the Company's unique portfolio of assets; and discussion of future plans, projections, objectives, estimates and forecasts and the timing related thereto.
Forward-looking statements are based on the Company's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of FansUnite to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Additional information regarding the risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's Non-Offering Prospectus dated March 27, 2020 filed on its issuer profile on SEDAR at www.sedar.com and risks related to global pandemics, including the novel coronavirus (COVID-19) global health pandemic, and the spread of other viruses or pathogens and influence of macroeconomic developments. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The forward-looking statements in this news release are made as of the date of this release. FansUnite disclaims and does not undertake to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
Other Recent Company News |
|||||||||||||||||||
|