UMG Enters into an Agreement to Acquire Activate Entertainment LLC.
A leading esports Events Production Company
Calgary, Alberta--(Newsfile Corp. - August 7, 2019) - UMG Media Ltd. (TSXV: ESPT) ("UMG" or the "Corporation") is pleased to announce that it has entered into an agreement to acquire Activate Entertainment LLC ("Activate"). Activate is a creative management and production services company that specializes in esports events and activations.
- In 2019, Activate has produced a number of major esports events, including the "Esports Experience" at the National Advertising Broadcaster (NAB) Show in Las Vegas, and the "Panasonic Esports Arena" at InfoComm in Orlando
- Activate works with hospitality brands such as Marriott International and Caesars Entertainment on their esports initiatives
- Activate helps corporate brands such as Panasonic and Roland develop points of entry into the esports industry
- Activate has produced top-tier livestream productions for clients at major shows including E3, San Diego Comic Con, Dell Technologies World and The World Series of Poker
Activate has offices in both Las Vegas and Los Angeles and is led by Chris Iaquinta and Dirk Hagen, who have combined over 40 years experience in the event management and production industry, with a focus on turnkey, custom activations for a wide variety of entertainment industries, both gaming related and beyond.
"Bringing Activate into UMG will greatly expand the services and expertise of UMG in the esports event management side of the industry," commented Dave Antony, CEO of UMG. "Being able to add the experience of Chris and Dirk will be invaluable as UMG expands."
Activate was responsible for the broadcast, production and execution of over three dozen live premium esports and video game activations in the last calendar year, bringing their nearly four decades of professional execution and delivery to bear. Activate also serves as the Director of Gaming and Esports for various entities, including NAB Show and the Metarama Gaming Festival.
"UMG represents the perfect structural partner that will allow our newly unified businesses to further raise the standard for esports livestreams and event productions", said Chris Iaquinta, President of Activate Entertainment. "Together, our ability to provide professional results and deliverables to clients, partners and customers will be greatly amplified."
In consideration for the acquisition of Activate (the "Transaction"), UMG will issue 2,333,333 Common Shares at a price of $0.30 per share. The shareholders of Activate have the ability to receive $3,000,000 in additional common shares ("Performance Shares") of UMG. The Performance Shares will be earned over the 18 month period following the closing of the transaction. The number of Performance Shares to be issued will be based directly on the gross revenue of Activate and will be issued at the 10 day weighted average price of UMG shares at the time of issue. The Transaction is subject to due diligence and regulatory approval, including the acceptance of the TSX Venture Exchange. The Transaction is an arm's length transaction.
Closing is expected to occur in the next 30 days.
For more information about UMG visit www.umggaming.com or contact:
Chief Executive Officer
UMG Media Ltd. ("UMG") is a premier esports company in North America, offering live gaming entertainment events and online play. UMG provides online and live tournaments as well as the creation and distribution of original esports content.
For more information about UMG visit www.umggaming.com.
Activate Entertainment is one of the leading esports and gaming activation and production specialists in the industry. Activate owns and operates a number of unique esports IPs, including Esports Gaming World (EGW) and The Elite Esports Academy.
To learn about Activate visit www.actentgroup.com
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including details about the Corporation's future operations and events. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including the impact of general economic conditions, industry conditions, currency fluctuations, operational risks, competition from other industry participants and stock market volatility. Although the Corporation believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Corporation does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
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