FansUnite to offload Betting Hero in $37.5 million deal


FansUnite Entertainment announced today that, together with FansUnite US Inc a wholly-owned subsidiary of the Company that carries on its Betting Hero business, it has entered into a definitive agreement with GeoComply Solutions Inc. and Hero Group Corp.

Pursuant to which the Company has agreed to sell to the Purchaser all of the issued and outstanding shares of FansUS, for an aggregate purchase price of US$37.5 million, adjusted on a cash-free, debt-free basis. Following such adjustments, and the payment or discharge of the Obligations (as defined below), the Company anticipates net proceeds from the sale of FansUS of approximately US$20 million , assuming a closing date of the Transaction on or about August 15, 2024.  Upon completion of the Transaction, the Purchaser will be controlled 60% indirectly by Betting Hero’s co-founders, Jai Maw and Jeremy Jakary (the “Betting Hero Co-Founders”), and 40% by GeoComply.

Quinton Singleton, an independent member of the board of directors of the Compan and Chair of the Special Committee (as defined below), said, “Following review of the Transaction by the Special Committee, in consultation with our financial and legal advisors, we believe that this Transaction represents the best available path forward for the Company, its shareholders and other stakeholders. The Distribution will provide immediate liquidity to the Shareholders and the Special Committee is unanimous in its belief that the Transaction is in the best interests of the Company and the Shareholders.”

Scott Burton, Chief Executive Officer and a director of the Board, stated: “After a long and thorough strategic evaluation of our business, we’ve received a substantial cash offer for our primary remaining asset. It not only reflects high market multiples when compared to similar transactions but also a substantial premium to our current share price. After extensive deliberation with our Board and advisors, we believe it’s in the best interest to recommend the sale and allow the Shareholders to vote on a return of capital”.