Tiidal Gaming (TIDL.CN) is an esports and gaming platform company focused on owning and operating synergistic businesses focused on media and technology in the gaming ecosystem. Tiidal is focused on enabling competitive gaming and building the future of game-based entertainment.
Today, Tiidal announced that it has entered into a share sale and purchase agreement with Entain Holdings (UK) Limited pursuant to which Tiidal Holdings will sell all of the shares of the Company’s operating subsidiary, Tiidal Gaming NZ Limited (“Sportsflare“), to Entain.
Sportsflare is one of the leaders in developing bet types for the esports betting space. Sportsflare has created market leading innovations, such as Flash Markets, that allows users to bet in-game on live esports events.
Tiidal Holdings has agreed to sell all of the issued and outstanding shares of Sportsflare to Entain for consideration of $13,250,000 in cash, subject to standard transaction adjustments. The Purchase Price will be retained by Tiidal in a holding account for 180 days following the closing, during which period Tiidal may access the funds to satisfy any working capital adjustment or claims brought by Entain and may access up to 20% of the funds to pay reasonable costs related to the Transaction.
The Transaction was negotiated at arm’s length and is subject to a number of conditions customary for a transaction of this nature, including approval of Tiidal shareholders and receipt of all required consents. Tiidal will seek shareholder approval at a meeting of shareholders expected to be held on April 26th 2023.
Directors, officers and certain shareholders holding an aggregate of 31,024,382 common shares, or 37.29% of the issued and outstanding shares of the Company, have signed customary voting support agreements to support and vote in favour of the Transaction at the Meeting. The board of directors of the Company has approved the Purchase Agreement and the Transaction and unanimously recommends that the shareholders of the Company vote in favour of the Transaction at the Meeting.
“I am incredibly proud of what the Sportsflare team has done over the last year. Given the capital markets environment, we believed it was best to find a great home for Sportflare in order to maximize value for Tiidal shareholders,” said Thomas Hearne, Chief Executive Officer of Tiidal. “Sportsflare will be a great fit with Entain’s strong presence in the industry and our board of directors is confident that Sportsflare joining Entain is the best long-term solution for its employees and partners.”
The stock is up 137.50% at time of writing on today’s news.
Tiidal broke below major support at $0.07 and confirmed new all time record lows for the stock. It began to range at $0.035, and today’s news is doing wonders for the technicals. A new uptrend is beginning.
Not only do we have a strong green candle with volume of over 1,000,000 shares traded, but we have reclaimed what used to be support turned resistance at $0.07. This is critical because when a stock breaks below support, it tends to pullback to retest it as resistance before continuing lower. This reclamation means the downtrend and continuation is over. What will officially confirm this is a daily candle close by the end of the day.
Another major technical breakout is the downtrend line that I have drawn. It has been in play since early 2022, and the stock has finally broken it. A confluence pointing at a high probability of a stock reversal and a new uptrend.
The next resistance level comes in at $0.125, and then $0.18.
