Victory Square Technologies Inc (CSE:VST) (OTCMKTS:VSQTF) (FRA:6F6) announced Wednesday that portfolio company V2 Games Inc has closed a transaction to acquire substantially all of the assets of GameOn App Inc.
Prior to the sale of its assets to V2 Games, GameOn was a gaming company providing consumers, broadcasters, sportsbooks, venues and brand partners with interactive, social experiences around sports, television and live events.
Victory Square said GameOn drove engagement and revenue through its suite of proprietary mobile and TV technologies, changing the way fans compete, watch and win through free and frictionless prediction games.
After completing the Techstars accelerator program and launching last summer, the company also said GameOn landed distribution rights into Comcast homes and bars.
GameOn’s television app, which has been acquired by V2 Games, overlays sports games to enable live prediction in venues throughout the US, driving viewership, engagement, and revenue. GameOn also worked with white-label partners including NBCUniversal, Bravo, and Real Housewives.
“We are excited to welcome the GameOn team to the Victory Square family,” said CEO Shafin Diamond Tejani in a statement. “This acquisition will strengthen the V2G management team, add new interactive and innovative products to the company's portfolio and includes partnerships with major players including Comcast and NBCUniversal. The upcoming public listing of V2G will also unlock value for VST and our shareholders, as we follow in the footsteps of the successful public launch of Fansunite Entertainment earlier this year.”
As part of the asset purchase, Victory Square said V2 Games issued 3,123,288 shares at $0.80 each, assumed US$274,400 in liabilities of GameOn, and issued a convertible note with a principal amount of US$92,000 and a maturity date of December 1, 2022 -- equivalent to a total purchase price of about US$2,965,047.
No interest is payable on the principal amount of the convertible note, which is convertible into common shares of V2 Games at $0.25 each at the option of the holder.
In addition, Victory Square said V2 Games has agreed to use commercially reasonable efforts to complete a going public transaction and list its common shares on the Canadian Securities Exchange by February 28, 2021, or such other date.
V2 Games has also agreed to use commercially reasonable efforts to complete a financing with gross proceeds of at least $1,500,000 at $0.25 per share. In addition, the board of directors of V2 Games will be reconstituted to consist of five members, three of whom will be nominees of V2 Games and two of whom will be nominees of GameOn.
New CEO for V2 Games
Furthermore, Victory Square said that Matthew Bailey, a founder and CEO of GameOn, has agreed to serve as V2 Games' chief executive.
Bailey has over a decade of experience, including executive roles with BSE Global - the owner of the Brooklyn Nets and Barclays Center - as well as CSM Sport & Entertainment, leading client accounts such as the Harlem Globetrotters. He has also developed revenue-generating partnerships with key brands including Ford Motor Company, T-Mobile, Burger King and Vita Coco, and has been featured in Forbes magazine.
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