Global Daily Fantasy Sports Inc. Provides COVID-19 And Playgon Acquisition/ Financing Transaction Update
Vancouver, British Columbia--(Newsfile Corp. - March 31, 2020) - Global Daily Fantasy Sports Inc. (TSXV: DFS) (FSE: 7CR) ("Global" or the "Company") is providing a business update and its response plan to the COVID-19 crisis.
The Company's first responsibility and priority is for the health and safety of its staff. Accordingly, Global has implemented a work- from-home policy in order to promote social distancing. These policies will remain active for the foreseeable future. Fortunately, as a digital business, our staff have the ability to work from home with minimal impact to carrying out its business activities.
Due to the severity and uncertainty of the current economic climate impacted by COVID-19, the Company has taken steps to reduce all non-essential business expenses. This has resulted in certain reductions to the Company's development resources and the Company intends to revisit its staffing needs after completion of its previously announced acquisition (the "Transaction") of Playgon Interactive Inc. ("Playgon").
Global previously announced on January 15, 2020 that it intended to complete a financing transaction of up to 33,333,334 subscription receipts (each, a "Subscription Receipt") at a price of $0.15 per Subscription Receipt for aggregate gross proceeds of up to $5,000,000 (the "Financing") in connection with closing of the Transaction. Due to the current unprecedented financial turmoil in the financial markets caused by the COVID-19 pandemic, along with regulatory approval delays, the closing of the Financing and Transaction has been further extended to on or before June 1, 2020, subject to the acceptance of the TSX Venture Exchange.
Global and Playgon remain very committed to completing the Transaction as soon as reasonably possible, given the synergistic benefits. The online casino industry growth rates are accelerating as a result of these difficult times of public lockdowns and shutdown of land-based casinos and betting shops, globally. The recent events have only validated the need for any land-based gaming business to adopt or escalate their digital strategies to mitigate such business risks in the future.
Darcy Krogh, CEO of Global, comments; "This has been an extremely difficult environment to finance our new transaction but I am confident we will get there. The irony of the situation is that there has never been a better time for us to complete and launch this new Live Dealer product as most online casinos are experiencing 20-30% growth in their online casino business."
Guido Ganschow, CEO of Playgon, comments, "Our technology is increasingly valuable at a time when casinos and betting shops around the world are forced to shut-down due to COVID-19, and a move to online interactive live dealer gaming is essential. Our shareholders and management team are eager to go public and have access to the necessary capital to launch our studio and our Live Dealer mobile product."
About Playgon Interactive Inc.
Playgon is a technology company devoted to leading the innovation curve in Live Dealer Casino gaming, featuring an unrivaled mobile platform. With its 12,000 sq. ft state of the art broadcasting studio streaming live from Las Vegas, the gaming capital of the world, Playgon is providing the ultimate in interactive entertainment with first-to-market products and mobile-first strategies that are years ahead of the competition. It's cutting-edge technology and operational best practices make Playgon the best possible partner for online casinos looking to the future. Playgon's Live Dealer Casino games cover the classic and most played casino favourites, from Roulette and Blackjack to Baccarat and Casino Hold'em with new in game features and functionality to boost online casino revenues, such as bonus features, side bets, tournament functionality and other promotional tools.
For further information, please visit Playgon's website at www.playgon.com.
About Global Daily Fantasy Sports Inc.
Global Daily Fantasy Sports Inc. (TSXV: DFS) (FSE: 7CR) is providing a multi-tenant gateway that allows operators to offer their customers a world class Daily Fantasy Sports software solution. The platform allows for seamless integration at the operator level without having to share or compromise any sensitive customer data. Joining the Company's network allows operators to capitalize on a mature infrastructure, with shared liquidity that was built specifically for regulated market environments. As a true B2B global network, the Company offers a SaaS product that is an ideal turn-key solution for sportsbook operators, land-based operators, media groups, and big database companies to participate in the daily fantasy sports industry.
For further information, please visit the Company's website at www.gdfsi.com.
Global Daily Fantasy Sports Inc.
Per: "Darcy Krogh"
Darcy Krogh, President and CEO
For further information, contact:
Mike Marrandino, Director
Tel: (604) 722-5225
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects" or "it is expected", or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements in this press release include, but are not restricted to, statements regarding the completion of the Transaction and the Financing, receipt of regulatory and shareholder approvals required for completion the Transaction and receipt of regulatory approvals required for completion of the Financing.
These forward-looking statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include that the Transaction does not complete, the Company fails to satisfy the escrow release conditions prior to the release deadline in connection with the Financing and the Company does not receive regulatory acceptance to the Financing. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, except as may be required by applicable securities laws.
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/53980