FansUnite will get paid $658,212 through the settlement and substantially reduce long-term debt
FansUnite Entertainment Inc. (CSE: FANS) (OTC Pink: FUNFF) ("FansUnite" or the "Company"), is pleased to report that it has assigned to Victory Square Technologies Inc. ("Victory Square") (CSE:VST) (OTC:VSQTF) (FWB:6F6) the Company's interest in debt in an aggregate amount of $833,730 (the "Assigned Debt"), pursuant to an assignment and subrogation agreement (the "Assignment Agreement") with Victory Square and V2 Games Inc. ("V2 Games"). The Assigned Debt arose pursuant to an amended and restated game financing agreement between V2 Games and Just Games Interactive Entertainment LLC, dba Kung Fu Factory, dated February 1, 2019, and was acquired by the Company pursuant to an interest purchase agreement between the Company and V2 Games, dated December 13, 2019 (the "Interest Purchase Agreement").
Pursuant to the Assignment Agreement, the Company has assigned the Assigned Debt to Victory Square, in full and final satisfaction of debt in the aggregate amount of $658,212 (the "Set Off Debt") owed by the Company to Victory Square and certain affiliates of Victory Square. After giving effect to the assignment and the set off, FansUnite's long-term debt will be reduced from $698,212 to $40,000.
Pursuant to the Interest Purchase Agreement, the Company also has the right to repurchase a portion of the common shares of the Company issued to V2 Games as consideration thereunder. Accordingly, the Company has elected, in the Assignment Agreement, to exercise such repurchase right and repurchase for cancellation a total of 501,484 common shares of the Company from V2 Games at $0.00001 per share. This repurchase represents the difference in value between the Assigned Debt and the Set Off Debt.
"Strengthening our balance sheet has always been a financial goal for us and we are delighted to see that we have cleared out our debt," said Scott Burton, CEO of FansUnite. "We are also grateful to have Victory Square support this deal as this highlights our strong relationship with a key shareholder of this company. This transaction substantially reduces our debt and allows us to now focus our financial resources on expanding our business operations and growing our company."
Further, the Company announces that it has granted a total of 825,000 incentive stock options to directors and/or officers under the Company's Stock Option Plan. The options are exercisable at $0.25 per share expiring September 27, 2030 and will vest quarterly over a three-year period.
FansUnite is a global sports and entertainment company, focusing on technology related to regulated and lawful online gaming and other related products. FansUnite has produced a one of a kind complete iGaming platform, with a sports and esports focus geared for the next generation of online bettors and casino players. The platform includes products for pre-match betting, in-play betting, daily fantasy, content and a certified RNG to produce casino style chance games. The platform operates multiple B2C brands and B2B software for the online gambling industry. FansUnite also looks to acquire technology platforms and assets with high-growth potential in new or developing markets.
For further information, please contact:
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
FORWARD-LOOKING STATEMENTS: Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "believes," "belief," "expects," "intends," "anticipates," "potential," "should," "may," "will," "plans," "continue" or similar expressions to be uncertain and forward-looking. Forward-looking statements may include, without limitation, statements relating to future outlook and anticipated events such as: statements relating to the reduction of the Company's long-term debt; statements relating to the Company's focus with respect to operations and growth in the B2B segment; and statements relating to the Company's intention to grant 825,000 options to directors and officers with an exercise price of $0.25. Forward-looking statements are based on the Company's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of FansUnite to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Additional information regarding the risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's Non-Offering Prospectus dated March 27, 2020 filed on its issuer profile on SEDAR at www.sedar.com and risks related to global pandemics, including the novel coronavirus (COVID-19) global health pandemic, and the spread of other viruses or pathogens and influence of macroeconomic developments. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The forward-looking statements in this news release are made as of the date of this release. FansUnite disclaims and does not undertake to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/65664