Business
FansUnite Sells Chameleon Gaming Platform to Betr Holdings, Retaining Worldwide and Perpetual License
FansUnite Sells Chameleon Gaming Platform to Betr Holdings, Retaining Worldwide and Perpetual License.
About this update from Fansunite Entertainment Inc.
[{"type":"text","content":"Vancouver, British Columbia--(Newsfile Corp. - May 9, 2023) - FansUnite Entertainment Inc. ‎‎(TSX: FANS) (OTCQX: FUNFF) (\"FansUnite\" or the \"Company\"), is pleased to announce a ‎definitive asset purchase agreement dated May 8, 2023 (the \"Definitive Agreement\") pursuant to which ‎the Company has sold (\"Transaction\") the source code related to the Company's Chameleon Gaming Platform (the \"Platform\") to Betr Holdings Inc. (\"Betr\") and pursuant to which FansUnite retains the use of the Platform and source code to further develop and maintain the Platform, and the ability to sell such use to another buyer in the future. Future code sales by FansUnite would not include any future enhancements made by Betr post close. The Transaction will allow the Company to further focus on growing its most profitable business units.Chameleon Gaming PlatformChameleon is an iGaming platform that enables companies to launch their own sports and related gambling brands or expand offerings thereunder. Transaction HighlightsFansUnite currently provides the Player Account Management (\"PAM\") system for Betr's operations, which made Chameleon an excellent fit with Betr's long-term strategy of owning its technology platform. Betr is the micro-betting specialist sportsbook co-founded by Jake Paul, currently operating in Ohio with plans to expand throughout the U.S.In addition, Betr has engaged 28 employees or contractors from the Company to continue work on the Platform and the parties have entered into a transition services agreement with respect to certain transition services to be provided on a post close basis.‎\"This is a transformational transaction for FansUnite and we are excited to move forward as a business that is a dominant player in its sector with the ability to execute on a profitable growth strategy,\" said Scott Burton, CEO of FansUnite. \"With the completion of this sale, we will reduce annual costs, ensuring we can execute on our strategy to generate positive cash flow this year.\"\"When we entered into our multi-year agreement with Betr, we knew their long-term strategy included building or acquiring their PAM. In addition to the cash component of the deal, we will receive equity ownership in Betr, allowing us to participate in their growth while also retaining use of the current code to support e...