The deal forms one of Canada’s leading online gaming companies, Vancouver-based FansUnite told shareholders and allows the firm to provide customers with a wider range of betting options such as sports and casino games.
Askott's B2B Chameleon Gaming platform was recently shortlisted for the 2020 EGR B2B Awards for Esports Betting Supplier of the Year.
READ: FansUnite Entertainment acquisition target Askott Entertainment completes C$5 million financing
New FansUnite CEO Scott Burton told shareholders that the deal represents one of the company’s biggest milestones to date.
"Our intention as a company has always been to scale and capture market share quickly,” Burton said in a statement. “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."
The firm’s former CEO and now president Darius Eghdami noted that the transaction combines a portfolio of B2B and B2C assets that are “unique, industry-leading, and support our goal of growing our global footprint” in the gaming industry.
Under the terms of the deal, Askott shareholders will receive 1.9193 shares of FansUnite for each share held at closing, an implied valuation of C$0.7485 per Askott share. FansUnite will issue nearly 71.2 million shares priced at C$0.39 to Askott shareholders.
In addition, former holders of 125,000 common share purchase warrants of Askott may purchase up to 239,912 FansUnite shares priced at C$0.32 per share expiring on May 31, 2023, and former holders of 1,820,000 stock options of Askott are now entitled to purchase 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 firm also issued around 12.7 million shares priced at C$0.40 upon exchange of Askott shares issued in connection with the private placement of subscription receipts for just over C$5 million.
Following the closing, funds from Askott’s earlier private placement totaling just over C$4.5 million were released from escrow.
Former Askott CEO Scott Burton has become the CEO of FansUnite and Darius Eghdami has become the president of FansUnite. Jeremy Hutchings, the former chief technology officer of Askott, has become the CTO of FansUnite, while Ian Winter, the former COO of Askott, has become the COO of FansUnite. Duncan Peter McIntyre has resigned as COO of the company and as a board member.
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