TORONTO, ON--(Marketwired - August 31, 2016) - Gaming Nation Inc. (the "Corporation" or "Gaming Nation") (TSX VENTURE: FAN), is excited to announce that it has entered a binding letter of intent with Fantasy Aces Daily Fantasy Sports Corp. ("Fantasy Aces") (TSX VENTURE: FAS) (OTC PINK: FASDD) for the acquisition of certain active daily fantasy sports participants in the database of Fantasy Feud Inc. ("FFI"), a subsidiary of Gaming Nation (the "Acquisition").
The Acquisition will provide Fantasy Aces direct access to over 35,000 participants in the FFI database. Most importantly, there are many unique FFI participants who have deposited and played over the last year, and are not duplicated on the Fantasy Aces platform. For those unique user participants, Fantasy Aces will pay Gaming Nation C$125.00 per participant. The Corporation will receive a cash payment of C$25,000, with the remainder of the purchase price being paid in common shares of Fantasy Aces at a price per share based on the 20 day moving average of the shares on the transaction date. The exact purchase price will be determined once Fantasy Aces and Gaming Nation agree on the number of unique user participants being acquired pursuant to the Acquisition.
The completion of the Acquisition is subject to the approval of the TSX Venture Exchange and all other regulatory bodies having jurisdiction in connection with the Acquisition. The parties anticipate entering into a definitive agreement setting out in more detail the terms of the Acquisition.
On a combined basis and for the six month period ended June 30, 2016, Fantasy Aces and FFI have:
- Gross Revenue of US$1,150,932.
- Prize Payouts of US$12,114,948.
- Game Entries of 1,384,320.
In addition to the extensive FFI user base, Fantasy Aces will become the DFS site recommended and endorsed by the other key daily fantasy properties controlled by Gaming Nation including Fantasy Guru, DFS Guru Elite, Pick Nation and 5050 Central. The totality and impact of these databases for this Acquisition will be measured immediately, and, will grow over time as Fantasy Aces mines the multitude of these Gaming Nation databases which will translate into a greatly accretive transaction.
Scott Secord, President and CEO of Gaming Nation comments: "This agreement benefits both parties and our combined players and we are extremely pleased to have closed this deal. Tom and his team have demonstrated that they not only have the experience but the wherewithal to drive value from each player on their site. With access to our full database, I am confident that not only will their revenues continue to grow exponentially, but they will be able to realize the site's true potential and ultimately generate a significant return for us as shareholders."
Tom Frisina, CEO of Fantasy Aces states: "This deal should prove to be extremely accretive to shareholders. Not only does it provide us with all the positive points listed above, but the timing of the deal could not be better as we move in to the biggest quarter of the year, with NFL starting, followed by NBA and NHL, while MLB and PGA continue. With certain states finally announcing that DFS players are able to freely play, we expect the whole industry to expand dramatically over the next few years. As a result of this transaction we could not be more excited to grab a bigger piece of what is becoming one of the biggest new industries in North America."
About Gaming Nation
Gaming Nation Inc. (TSX VENTURE: FAN) provides technology and information platforms to the sports and entertainment industry. The company's platforms include 5050 Central, an electronic real-time raffle system, daily fantasy games through Fantasy Feud and sports information websites Fantasy Guru and Pick Nation.
About Fantasy Feud
Fantasy Feud is a social gaming platform built for daily fantasy sports contests. Fantasy Feud offers contests for the NFL, MLB, NBA, NHL, PGA, NASCAR as well as college football and basketball across many game variations and contest entrance points. Our online community provides a network of fantasy players for all users to test their skills against other competitors.
About Fantasy Aces
Fantasy Aces is a leading DFS (Daily Fantasy Sports) site focused on everyday skill-based fantasy sports games. Fantasy Aces 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 FantasyAces.com website currently offers daily and weekly skill based fantasy sports games for six major North American sports, including the NFL, NBA, NHL, MLB, College Football and the PGA. Fantasy Aces 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. Fantasy Aces charges a management fee from all entry fees collected on the website.
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including the impact of general economic conditions, industry conditions, currency fluctuations, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. Although the Corporation believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Corporation does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The offered securities mentioned in this press release will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.
This new release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.