Interactive Games Technologies (BETS.C) inked a binding letter of intent (LOI) to combine with an online gaming space in India, according to a press release.
The move will help develop BETS existing business by giving them access to over 20 million players across the verticals of Fantasy Sports, Poker, Rummy and Mobile esports by the end of 2022, with a stated objective of passing a combined revenue of USD$50 million in two years.
According to the press release, the specifics of the LOI include:
IGT.BET will complete a proposed business combination with the Target whereby IGT.BET will acquire all of the outstanding securities of the Target (“Target Shares”). The parties will in good faith consider and evaluate potential structures for finalizing the Transaction, with a view to completing the Transaction as efficiently and expeditiously as possible, taking into account, among other things, timing, legal, regulatory and tax considerations.
BETS will negotiate a sale and purchase agreement with the intent to close it by May 30, 2021. The company intends to drop $5 million within ten days of signing the LOI, which they intend to finance through a private placement at $0.33 per share.
The company is under at trade-halt right now as the CSE looks over the transaction. The CSE’s approval will be granted if the issuer meets the minimum listing requirements for a new listing.
The online gaming industry across India was valued at around 65 billion Indian rupees in the year 2019, marking a jump from about 46 billion rupees in the previous year.
—Joseph Morton
Full disclosure: Interactive Games Technologies is an equity.guru marketing client.
