Global Daily Fantasy Sports completes Playgon acquisition
Global Daily Fantasy Sports has completed the purchase of Playgon Interactive from its shareholders as described in its press release dated December 2, 2019.
Pursuant to the Transaction, Global issued 63,333,333 common shares to shareholders of Playgon at an ascribed price of $0.15 per share for a purchase price of $9,500,000.
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 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 multi-billion 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 EUR6-EUR7 billion market from EUR4 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.