Tiidal Gaming Group (TIDL.C), a Canadian company focused on owning and operating businesses focused on media and technology in the gaming ecosystem, announced today that it planned to divest itself of its esports assets to focus on Sportsflare.
Sportsflare is a product suite of unique betting products focused on esports and gaming which utilize novel technological developments that enable ‘betting on yourself’ and ‘positional-based betting’.
This industry-leading platform is comprised of an AI esports engine that accurately produces accurate predictions for hundreds of in-game outcomes in real-time, a data platform that aggregates and analyzes various data sources, and a trading platform that not only updates in-play and pre-match prices based on betting activity but also provides automated bet settlements.
Currently, Tiidal has notable agreements with leading i-gaming and e-sports book providers like EveryMatrix Group, Vivid Seats, Skrmiish and Bayes Esports Solutions.
Sportsflare gives Tiidal the opportunity to develop a foundational position as an agnostic betting service provider in a global e-sports and gaming industry expected to reach $12.49 billion by 2030 at an annual compound growth rate of 21.9%.
Tom Hearne, CEO of Tiidal, commented on the proposed divesture, “We have decided to put our undivided attention behind Sportsflare given the opportunity at hand and the amazing progress we have made with our e-sports betting products during the year. As we continue to scale, our focus will be to not only grow our technology portfolio, but also expand the distribution of our solutions to a wider audience globally in order to strengthen our footprint in the fast-growing e-sports industry.”
Once the divesture is complete, the company plans to ask shareholders to consider a name change from Tiidal Gaming Group to Sportsflare Ltd. Voting will take place at the company’s next annual general and special meeting of shareholders expected to be held in Q4 2022.
Tiidal reported $583,877 CAD in cash as of April 30, 2022, and revenues of $89,210 for the quarter ending April 30, 2022, for a net loss of $5.03 million during that same period.
In other news, the company arranged a non-brokered private placement of units in Tiidal at an issue price of $0.10 per unit for gross proceeds of up to $500,000.
Each unit is comprised of one common share in the company and one common share purchase warrant. Every warrant entitles the holder to purchase one common share at an exercise price of $0.15 per for three years from the date of issuance.
All securities issued in this offering will be subject to a customary four-month plus one day hold period from the date of issuance.
Tiidal intends to use the proceeds of this offering Sportsflare operations in sales, trading and development, and general corporate and working capital purposes.
The proposed offering and name change is still subject to regulatory approval. If approved, closing of the first tranche is anticipated to complete on or before August 31, 2022.
Currently, Tiidal trades at $0.09 per share for a market cap of $6.48 million.