DraftTeam Daily Fantasy Sports Corp.

DraftTeam Daily Fantasy Sports Corp.

May 28, 2015 18:30 ET

DraftTeam Daily Fantasy Sports Corp. Files March 31, 2015 Financial Report

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 28, 2015) - DraftTeam Daily Fantasy Sports Corp. ("DraftTeam" or the "Corporation") (TSX VENTURE:DTS) has issued its financial report for the three month period ended March 31, 2015.

During the three months ended March 31, 2015, the Corporation transitioned to the daily fantasy sporting industry through the merger with DraftTeam Fantasy Sports Inc.

On March 10, 2015, the Corporation completed a business combination with DraftTeam Fantasy Sports Inc. ("DFS") (the "Transaction") whereby the Corporation acquired all of the issued and outstanding common shares of DFS. Under the terms of the Transaction, DFS shareholders received 0.4667 of a common share of the Corporation ("DraftTeam Share") for every one common share of DFS ("DFS Share") held. As of the effective date of the Transaction, all outstanding DFS warrants and options remained outstanding and continued to be governed by the terms and provisions of the warrant certificates and option commitments, respectively; however, the holder was entitled upon the exercise thereof to receive DraftTeam Shares based on the above noted exchange ratio.

The Corporation issued to the shareholders of DFS 16,444,075 common shares and DFS became a wholly owned subsidiary of the Corporation. As part of the transaction the Corporation changed its name to DraftTeam Daily Fantasy Sports Corp.

As the Transaction was completed on March 10, 2015, the consolidated financial statements for the period ended March 31, 2015 only contain the combined operations for DraftTeam for a period of 20 days.

Since closing the Transaction DraftTeam has initiated its marketing campaign for the MLB season and has begun planning for the upcoming NFL season. The marketing initiatives have focused on increasing the active members that participate in its daily fantasy games and include establishing partnerships with organizations related to the daily fantasy sports business, building strong affiliate marketing programs and increasing the social media presence of the Corporation.

The initial results of the MLB marketing campaign have been very encouraging. In comparison to the opening month of MLB 2014, DraftTeam has experienced a 111% increase in active members, a 424% increase in registered members and a 92% increase in prize payouts. This growth that was announced in April has continued through May with active membership increases of similar amounts compared to May of 2014. DraftTeam expects to experience sustained membership growth throughout the MLB and upcoming NFL seasons.

About DraftTeam

DraftTeam focuses on daily and weekly skill based fantasy sports games. DraftTeam has developed proprietary software which allows users to create fantasy teams from the player rosters of actual sports leagues and then use their teams to compete against other users in various categories such as points scored, yards gained, goals, assists or home runs registered, depending on the specific sport. The DraftTeam.com website currently offers daily and weekly skill based fantasy sports games for the four major sports in North America, which includes the NFL, NBA, NHL and MLB. DraftTeam also offers a variety of entry fee contest options for its members to play, in addition to free roll tournaments to attract new members to the site. DraftTeam charges a management fee from all entry fees collected on the website.


Forward-Looking Information - This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning the Corporation's business activities. The forward-looking statements and information are based on certain key expectations and assumptions made by DraftTeam. Although DraftTeam believe that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because DraftTeam can give no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: risks related to the ability to attract retail customers; changing consumer preferences; potential intellectual property rights claims; ability to access sufficient capital from internal and external source; failure to obtain required regulatory and other approvals; and changes in legislation. Accordingly, readers should not place undue reliance on the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Corporation's operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and DraftTeam undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.


Contact Information