Business
FansUnite Announces Migration of DragonBet and Departure of Chief Technology Officer
FansUnite Announces Migration of DragonBet and Departure of Chief Technology Officer.
About this update from Fansunite Entertainment Inc.
[{"type":"text","content":"Company expects to achieve approximately $7.1 million in cost savings and is on a firm path to generate positive cash flow in Q4 2023Continuing with the strategic plan to improve financial efficiency by focusing on the more profitable Affiliate segment which produces substantial revenues and contributes strong gross margins.Vancouver, British Columbia--(Newsfile Corp. - August 24, 2023) - FansUnite Entertainment Inc. (TSX: FANS) (OTCQB: FUNFF) (\"FansUnite\" or the \"Company\") announced that it has reached an agreement with DragonBet, a Welsh-based UK sportsbook, to migrate off the Chameleon Gaming platform on or about September 3, 2023, as part of the Company's strategy to streamline its business operations.The migration of DragonBet, combined with the sale of the Company's Chameleon source code to Betr Holdings, Inc. on May 8, 2023, will complete FansUnite's transition away from business-to-business (\"B2B\") platform licensing. As a result of this transition, the Company expects to achieve annualized cost savings of approximately $7.1 million, which includes reductions in salary and selling, general and administrative costs. These cost savings will be reflected in the Company's financial results once the wind-up of operations of the Chameleon Gaming platform is completed. FansUnite expects to generate positive cash flow in Q4 2023 as a result of its strategic plan to improve financial efficiency. FansUnite will now increase its focus on its affiliate segment, which contributed $23.0 million of its $27.3 million in revenue during Fiscal 2022.Furthermore, the Company announced that Jeremy Hutchings will step down from his role as Chief Technology Officer on September 30, 2023 to pursue other opportunities in response to the Company's new strategic focus on the more profitable affiliate segment. He will be available to provide consulting on the Company's plans to monetize the source code of the Chameleon Gaming Platform through potential further sales of said code. FansUnite would like to thank Jeremy for his contribution and wish him the best in his future endeavors.\"Firstly, I would like to thank my co-founder Jeremy Hutchings for his contribution to FansUnite as he played an integral role during the early stages of the Company and we look forward to watching his future success,\" said Scott Burton, CEO of FansUnite. \"Addit...