Vancouver, British Columbia - TheNewswire – June 19, 2020 – Global Daily Fantasy Sports Inc. (TSXV:DFS) (FSE:7CR) (“Global” or the “Company”) is pleased to announce that it has completed the purchase of Playgon Interactive Inc. (“Playgon”) from its shareholders as described in its press release dated December 2, 2019 (the “Transaction").

 

Pursuant to the Transaction, Global issued 63,333,333 common shares (“Common Shares”) to shareholders of Playgon at an ascribed price of $0.15 per share for a purchase price of $9,500,000.  

 

Pursuant to the terms of the purchase agreement, 4,608,891 Common Shares of Global (the “Indemnity Escrow Consideration Shares”), were placed in escrow to satisfy any indemnity claims.  Subject to the satisfaction of any agreed claims under the Agreement, 50% of the Indemnity Escrow Consideration Shares will be released to the Vendors on the one-year anniversary of 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 (the “Release Escrow Consideration Shares”) 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 €6-€7 billion market from €4 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.

The Company has now satisfied all the conditions to the release of the escrowed proceeds of its previously completed financing of approximately $5,750,000 (the “Financing”) and the conversion of the 38,331,588 subscription receipts (the “Subscription Receipts”) issued by the Company in the Financing. The Company provided notice today to Computershare Trust Company of Canada (“Computershare”), as subscription receipt agent, that the escrow release conditions have been met. Computershare released the net proceeds of the Financing to the Company and the balance of the cash fees relating to the Financing to Beacon Securities Limited. The Subscription Receipts converted into 38,331,588 common shares and 38,331,588 common share purchase warrants having the terms set out in the Company’s press release dated April 23, 2020.

 

*Source: H2 Gaming Consultants (https://h2gc.com)

 

About Playgon Interactive Inc.  

Playgon is a technology company devoted to leading the innovation curve in Live Dealer Casino gaming, featuring an unrivalled mobile platform. With its 12,000 sq. ft state of the art broadcasting studio streaming live from Las Vegas, the gaming capital of the world, Playgon is providing the ultimate in interactive entertainment with first-to-market products and mobile-first strategies that are years’ ahead of the competition. Its cutting-edge technology and operational best practices make Playgon the best possible partner for online casinos looking to the future.

 

Playgon’s Live Dealer Casino games cover the classic and most played casino favorites, from Roulette and Blackjack to Baccarat and Casino Hold’em with new in game features and functionality to boost online casino revenues, such as bonus features, side bets, tournament functionality and other promotional tools.

 

For further information, please visit the Company's website at www.playgon.com

About Global Daily Fantasy Sports Inc.

 

Global Daily Fantasy Sports Inc. (TSXV: DFS) (FSE: 7CR) is a technology company focused on developing digital content for the growing iGaming market. Its current platforms include both Daily Fantasy Sports and Live Dealer Gaming which through a seamless integration at the operator level allows customer access without having to share or compromise any sensitive customer data. As a true B2B global digital content provider, the Company offers its content as a SAAS product that are ideal turn-key solutions for online casino, sportsbook operators, land-based operators, media groups, and big database companies to participate in both Live Dealer Casino Gaming and Daily Fantasy Sports.

 

For further information, please visit the Company's website at www.gdfsi.com

Global Daily Fantasy Sports Inc.

Per:        “Darcy Krogh”

Darcy Krogh, President and CEO

For further information, contact:

Mike Marrandino, Director

Tel: (604) 722-5225

Email: mike@gdfsi.com

 

Neither 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 release.

Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation.  Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects” or “it is expected”, or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements in this press release include, but are not restricted to, statements the future operating or financial performance of Global and Playgon.

These forward-looking statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market conditions, regulatory risks and uncertainty as to revenues, reliance on key personnel, management or growth and difficulty in forecasting. Accordingly, the actual events may differ materially from those projected in the forward-looking statements.  When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, except as may be required by applicable securities laws.

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