Business
FansUnite Enters into Definitive Agreement to Sell Its Betting Hero Business to the Betting Hero Co-Founders and GeoComply
FansUnite Enters into Definitive Agreement to Sell Its Betting Hero Business to the Betting Hero Co-Founders and GeoComply.
About this update from Fansunite Entertainment Inc.
[{"type":"text","content":"Vancouver, British Columbia--(Newsfile Corp. - June 27, 2024) - FansUnite Entertainment Inc. (TSX: FANS) (OTCQB: FUNFF) (\"FansUnite\" or the \"Company\") announced today that, together with FansUnite US Inc. (\"FansUS\"), a wholly-owned subsidiary of the Company that carries on its Betting Hero business, it has entered into a definitive agreement (the \"Stock Purchase Agreement\") with GeoComply Solutions Inc. (\"GeoComply\") and Hero Group Corp. (the \"Purchaser\"), pursuant to which the Company has agreed to sell to the Purchaser all of the issued and outstanding shares of FansUS (the ‎‎\"Transaction\"), for an aggregate purchase price of US$37.5 million, adjusted on a cash-free, debt-free basis. Following such adjustments, and the payment or discharge of the Obligations (as defined below), the Company anticipates net proceeds from the sale of FansUS of approximately US$20 million (\"Net Proceeds\"), assuming a closing date (\"Closing Date\") of the Transaction on or about August 15, 2024. Upon completion of the Transaction, the Purchaser will be controlled 60% indirectly by Betting Hero's co-founders, Jai Maw and Jeremy Jakary (the \"Betting Hero Co-Founders\"), and 40% by GeoComply.Pursuant to the terms of the Stock Purchase Agreement, the Company has agreed to distribute 90% of the Net Proceeds (after payment or discharge of certain obligations and liabilities of the Company, including those associated with the Transaction or otherwise (collectively, the \"Obligations\")) to the holders (the \"Shareholders\") of common shares of the Company (the \"Company Shares\"), subject to applicable solvency and other legal or contractual requirements, as a return of capital on the Company Shares (the \"Distribution\"). There are a number of variables, known and unknown, that may impact the ultimate amount of the Distribution payable to the Shareholders, including the quantum of the Net Proceeds and the Obligations. While the Distribution may therefore be materially lower than the amount currently anticipated, based on the information available to the Company at the date hereof, it is anticipated that the Distribution to be paid to the Shareholders subsequent to the completion of the Transaction is likely, based on the USD/CAD exchange rate published by the Bank of Canada on June 26, 2024, to be in the range of approximate...