Global Daily Fantasy Sports Inc. completes acquisition of Playgon Interactive Inc
Global Daily Fantasy Sports Inc. is pleased to announce that it has completed the purchase of Playgon Interactive Inc. from its shareholders.
Pursuant to the Transaction, Global issued 63,333,333 common shares (“Common Shares”) to shareholders of Playgon at an ascribed price of $0.15 per share for a purchase price of $9,500,000.
Pursuant to the terms of the purchase agreement, 4,608,891 Common Shares of Global (the “Indemnity Escrow Consideration Shares”), were placed in escrow to satisfy any indemnity claims. Subject to the satisfaction of any agreed claims under the Agreement, 50% of the Indemnity Escrow Consideration Shares will be released to the Vendors on the one-year anniversary of the Closing Date of the Transaction and the balance will be released on the 18-month anniversary of the Closing Date. In addition, 41,480,009 common shares of Playgon (the “Release Escrow Consideration Shares”) will be subject to resale restrictions, such that 12.5% of the Release Escrow Consideration Shares shall be released for sale on a quarterly basis following the initial six-month anniversary of the Closing Date. If the aggregate of indemnity claims exceeds the number of Indemnity Escrow Consideration Shares multiplied by $0.15 per share, the Release Escrow Consideration Shares shall also be subject to recovery by the Company to a maximum indemnity cap of $5,000,000.
On closing of the Transaction, Guido Ganschow, the President, Chief Executive Officer and principal shareholder of Playgon, was appointed to the board of directors of the Company. Mr. Ganschow has 12+ years of experience in creating real-time Live-Dealer platforms, he successfully created and established Live Dealer platform businesses in Asia, Europe and LATAM, and executed commercial partnerships with many of the top tier Gaming brands in the industry. He is the founder of Playgon Interactive Inc., a Canadian iGaming venture with a focus on innovating Live-Dealer technology and is the creative force behind its streaming social and real money live dealer products, developed with a mobile first methodology.
Guido Ganschow, CEO of Playgon states, “The Live Dealer Casino space has turned into a multibillion dollar vertical within the online casino business and has clearly established itself as an exciting and growing part of the iGaming market. From a product perspective, it has fallen short over the last couple of years, with lack of innovation and quality, especially for the mobile user, who currently represents over 70% of operator generated revenue. We saw a significant gap in what the industry continues to deliver in content, and we believe that our unique Vegas Live Dealer strategy, Mobile First approach will bring real innovation and a true sense of Las Vegas to players online.”
Darcy Krogh, CEO of Global states, “Live Dealer is an exciting technology and I am thrilled to add this innovative next generation IP to our portfolio of digital content we can take to the market. In my opinion, this is the best-suited technology that compliments the land-based gaming industry’s transition to digital. Since 2015, this technology and vertical within the online casino space has experienced exponential growth and industry experts believe by 2024 it will be to a €6-€7 billion market from €4 billion currently* Mr. Krogh adds, I have had the pleasure of working with Guido in the past. He is an expert with a proven track record in the Live Dealer space. Guido and his team have built a fabulous mobile product that is scalable and versatile in its application to pursue opportunity in both the real money and social gaming verticals. Technology is changing most industries today and the gambling industry is no exception. As a software company we are dedicated to support that convergence.”
James Penturn, Chairman of the Board of Global states, “We are very pleased with the acquisition
of Playgon and it’s compelling software and unique Live Dealer product. I am personally delighted
that Guido is joining the board of Global. I have had the opportunity to get to know Guido well over
the past year and I have every confidence that he brings exceptional knowledge, skill, and integrity
to a growing and exciting iGaming market. He will be a wonderful asset to the board, and I believe
with Darcy and Guido we have a dynamic and experienced team who will serve the interests of our
shareholders exceptionally well.
The Company has now satisfied all the conditions to the release of the escrowed proceeds of its previously completed financing of approximately $5,750,000 (the “Financing”) and the conversion of the 38,331,588 subscription receipts (the “Subscription Receipts”) issued by the Company in the Financing. The Company provided notice today to Computershare Trust Company of Canada (“Computershare”), as subscription receipt agent, that the escrow release conditions have been met. Computershare released the net proceeds of the Financing to the Company and the balance of the cash fees relating to the Financing to Beacon Securities Limited. The Subscription Receipts converted into 38,331,588 common shares and 38,331,588 common share purchase warrants having the terms set out in the Company’s press release dated April 23, 2020.