VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 9, 2016) - In a move that greatly enhances its capacity to engage fans with compelling games, contests and sports content, Fantasy 6 Sports Inc. ("Fantasy 6" or the "Company") (CSE:FYS)(OTC PINK:FNTYF)(FRANKFURT:6F6)(WKN: A2AKL8) announced today that it has completed a $2,000,000 transaction to acquire FansUnite Media Inc. ("FansUnite").
FansUnite will continue to operate as a front line division of Fantasy 6. FansUnite Chief Executive Officer Darius Eghdami, Duncan McIntyre and Nicolas Shuster, the three founders of the social sports data platform, will retain their operating responsibilities and take on senior roles within the Fantasy 6 sports, entertainment and technology group, reporting to Chief Operating Officer Ray Walia.
The transaction brings their visionary leadership and highly-regarded development team under the Fantasy 6 umbrella and will further strengthen an innovative sports data platform that is designed to complement the world's largest sportsbooks such as Pinnacle Sports, bet365 and William Hill, along with high-profile fantasy sports platforms such as DraftKings and FanDuel.
"With the close of this transaction, we go from a presence in four sports to innovative games, contests and analytics in over 16 major sports," said Shafin Diamond Tejani, Chief Executive Officer of Fantasy 6. "We're confident that fantasy sports players, social media enthusiasts and all sports fans will enjoy the tools and resources that are synonymous with FansUnite. We're very excited to move forward with FansUnite."
"Our team is fully-energized by the opportunity and we know we'll be exposed to a whole new world of innovation and that our social sports community will only thrive as part of Fantasy 6," said Eghdami, whose FansUnite platform has won awards recognizing excellence in start-up companies.
The Fantasy 6 NFL Pick'Em Challenge, a fan-centered contest featuring up to $100,000,000 USD in total prize pool and the chance for individual fans to win up to $10,000,000 USD, is already online at FansUnite.com.
"With the kick off to the NFL season this week and the new NBA and NHL seasons just around the corner, the timing of our acquisition of FansUnite could not be better for Fantasy 6 and our fan engagement strategy and growth plan," said Walia.
TERMS OF THE ACQUISITION
Further to the Company's news release of August 22, 2016, and pursuant to a definitive share purchase agreement executed between the Company and the shareholders of FansUnite on August 31, 2016 (the "Share Purchase Agreement"), the Company has acquired all of the issued and outstanding shares of FansUnite. The purchase price of an aggregate of $2,000,000 has been paid and satisfied by the Company through the issuance of 1,893,940 common shares in the capital of the Company (the "Consideration Shares") to the shareholders of FansUnite at a deemed issue price of $1.056 per Consideration Share. The deemed issue price represents the Market Price (as defined in National Instrument 45-106 - Prospectus Exemptions) of the common shares of the Company on the Canadian Securities Exchange at the end of trading on August 19, 2016, the trading day preceding the Company's initial announcement of the acquisition, less the maximum allowable discount of 20%. In accordance with the terms of the Share Purchase Agreement, the Consideration Shares are subject to a 12-month lock-up period. The Share Purchase Agreement also contains standard representations, warranties and covenants for transactions of this nature.
ABOUT FANTASY 6 SPORTS INC. (CSE:FYS)
Fantasy 6 is a sports, entertainment and technology company which produces games, contests and other related products and experiences for fans around the world. Fantasy 6 Sports Inc. currently offers a wide variety of daily, weekly and season-long contests across multiple professional sports leagues. The Company also develops interactive fan engagement platforms for corporations, media, broadcasters and not-for-profit societies and charities. The Company's mission is to create new dimensions in fan engagement, experience and entertainment and our vision is the most knowledgeable, passionate and engaged generation of fans in history.
ABOUT FANSUNITE AND FANSUNITE.COM
Now part of Fantasy 6 Sports Inc., FansUnite is a social sports data platform launched by three sports fans who wanted to take sports back to the global community of fans that fuel the industry. With contests such as the NFL Pick 'Em Challenge, FansUnite.com caters to every type of fan. With a free virtual currency, members make their fantasy sports picks with zero monetary risk and are able to track their selections with the proprietary PickTracker. FansUnite.com offers a full-unedited look into the picking history of individual players and their peers. FansUnite Consensus literally allows members to see what the crowd is saying.
ABOUT THE CANADIAN SECURITIES EXCHANGE (CSE)
The Canadian Securities Exchange, or CSE, is operated by CNSX Markets Inc. Recognized as a stock exchange in 2004, the CSE began operations in 2003 to provide a modern and efficient alternative for companies looking to access the Canadian public capital markets. The CSE has not reviewed, nor approved or disapproved the content of this press release.
This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of Fantasy 6. Forward-looking information is based on certain key expectations and assumptions made by the management of Fantasy 6, including future plans for acquisitions. Although Fantasy 6 believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Fantasy 6 can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. Fantasy 6 disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws or any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirements.