Bragg Gaming Group Inc (CVE:BRAG) (OTCMKTS:BRGGF) has inked a definitive share purchase agreement with SN&CK Media Limited (SML) for the sale of its media division, including GiveMeSport (GMS), following the completion of a strategic review of its online media division.
Under the sale agreement, Bragg said it will receive total consideration of up to £400,000 (C$699,801), consisting of an upfront cash payment of £50,000 (C$87,465), in addition to 10% of the gross revenues from the media division for a period of 21 months following completion, which is expected in early May 2020.
“The completion of the strategic review process and the execution of the agreement for the sale of Bragg's online media division to SML will allow us to focus our efforts and resources on Oryx, our B2B business, which is growing at an exponential rate,” Bragg CEO Dominic Mansour said in a statement.
“Given the current environment and the significant jump in virtual and digital activities, we have seen demand for Oryx’s online gaming and gambling services increase over the past few months. We have made significant strides over the past year in enhancing our platform and building this asset, and we will now be able to further streamline our activities and reduce our cash burn.”
Bragg launched a strategic review of its online media division In August 2019, an eight-month process that will be completed with the sale of the online media division to SML.
SML, established in 2007 and based in London, is a leading independent sports digital media company with over 30 million sports fans, specializing in multi-channel content creation, distributed at scale, through data-driven engagement strategies. SML’s digital publishing partners include The National Football League, Football Fancast, The Cricket Paper, and other partners. SML reported over 500 million global ad impressions on approximately 400 websites.
Niall Coen, CEO of SML, pointed out that with the deal the company will become one of the largest sports media web platforms in the UK and largest globally on Facebook.
“Both Bragg and SML have long-standing relationships with quality partners that we will be able to mutually leverage in order to grow at an exponential pace. We are excited about combining the two businesses and expanding our platform to take advantage of its 25 million Facebook followers and the great work done by the GMS team,” Coen added.
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