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.
In the middle of March 2023, the Company announced it had 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.
Today, the Company announced that its Board of Directors has concluded its previously announced strategic review process which commenced following the sale of Tiidal Gaming NZ Limited dba Sportsflare to Entain Holdings (UK) Limited. As part of its strategic review, the Board of Directors completed a canvas of various strategic alternatives currently available to the Company in order to preserve or maximize shareholder value.
The Board of Directors have determined it is in the best interest of the Company to return capital to its shareholders by way of a substantial issuer bid which is to be completed no earlier than December 7th 2023.
Tiidal intends to offer the purchase for cancellation all of its issued and outstanding common shares being 87,603,908 Shares, for cash consideration of C$0.1225 per share representing an approximately 27% premium over the Company’s volume-weighted average price on the Canadian Securities Exchange over the last 20 trading days.
Assuming all of the outstanding Shares are tendered at the Purchase Price, an aggregate of C$10,731,478.73 would be returned to the Shareholders.
Shareholders wishing to tender to the Offer will be entitled to do so pursuant to a tender notice in which they will specify the number of Shares being tendered. The Offer is expected to commence on or about November 2, 2023 and expire at 5:00 p.m. (Eastern time) on the date that is 35 days from the date the Offer is commenced, , unless withdrawn or extended.
The Offer will not be conditional upon any minimum number of Shares being tendered. The Offer will, however, be subject to other conditions and the Company will reserve the right, subject to applicable laws, to withdraw or amend the Offer, if, at any time prior to the payment of deposited Shares, certain events occur.
The Company plans to fund repurchases of Shares through available cash on hand. The Offer is optional for all Shareholders, who are free to choose whether to participate and how many Shares to tender. Shareholders who do not deposit their Shares will realize a proportionate increase in their equity interest in the Company, to the extent that Shares are purchased under the Offer.
The stock is a major mover on the Canadian stock markets with a rise of 26.32% on this news.
Since Spring 2023, the stock has been ranging and creeping upwards. We are now retesting a major resistance which has been held since Fall of 2022. Bulls should watch for a strong daily candle close above this resistance zone. It would be a major technical breakout and set the stock for a move to the $0.18 zone.
