FansUnite Entertainment Inc. (FANS:CSE) announced in a news release it agreed to acquire Askott, a Vancouver, British Columbia-based online gambling software development firm and owner of the ChameleonGaming Platform.
""As the online gambling market continues to grow, the amalgamation with Askott is a significant milestone and transforms us into one of Canada's premier iGaming companies," said FansUnite Entertainment CEO Darius Eghdami. "Combining with Askott provides us with a fully integrated gaming asset that offers multiple business-to-consumer platforms for users in a variety of betting offerings, business-to-business technology that can be licensed to all types of sportsbooks and a seasoned team of executives that have led and grown multiple organizations on a global scale."
This combination creates a leading online iGaming company, and positions us strongly for significant growth with new offerings and market opportunities," Eghdami stated.
According to the agreement terms, Askott shareholders will receive about 1.9193 common FansUnite shares for each Askott common share held at closing (a value of CA$0.7485 per Askott share). FansUnite will issue about 68,457,313 FansUnite shares to Askott shareholders at CA$0.39 apiece.
Holders of the currently outstanding 125,000 common share purchase warrants of Askott will be entitled to buy up to 239,912 FansUnite Shares at about CA$0.26 per share. The holders of the currently outstanding 1,820,000 stock options of Askott will be entitled to purchase up to 3,493,125 FansUnite shares at about CA$0.26–0.32 apiece. Also, FansUnite may issue up to 2,582,072 of its shares in exchange for Askott shares, at the exchange ratio, if certain Askott warrants are exercised and do not expire before the transaction closes.
When the deal goes through, FansUnite expects to have about 138,161,092 FansUnite shares issued and outstanding. Of those, former Askott holders will hold about 50% on a nondiluted and a fully diluted basis.
Also, before the closing, Askott is to conduct a private placement of subscription receipts up to $5 million at an issue price both it and FansUnite agree upon.
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