Business
SharpLink Gaming Completes Sale of Legacy Telecommunications Business to Entrypoint
SharpLink Transitions from Foreign Private Issuer Status to Reporting as a U.S. Domestic Company, Effective January 1, 2023MINNEAPOLIS, MN / ACCESSWIRE /
About this update from Sharplink, Inc.
[{"type":"text","content":"SharpLink Transitions from Foreign Private Issuer Status to Reporting as a U.S. Domestic Company, Effective January 1, 2023MINNEAPOLIS, MN / ACCESSWIRE / January 5, 2023 / SharpLink Gaming Ltd. (NASDAQ:SBET) (\"SharpLink\" or the \"Company\"), a pioneer of targeted conversion solutions for the U.S. sports betting and iGaming industries, today announced the closing of the previously announced sale of the Company's legacy Mer Telemanagement Solutions business (\"Legacy MTS\") to Israel-based Entrypoint South Ltd., which changed its name in connection with its acquisition of the Legacy MTS business to MTS Technology Ltd. (\"MTS Technology\"), a subsidiary of Entrypoint Systems 2004 Ltd. (\"Entrypoint\").In consideration of MTS Technology acquiring all rights, title, interests and benefits to Legacy MTS, including 100% of the shares of MTS Integratrak Inc., one of the Company's U.S. subsidiaries, it will pay SharpLink an earn-out payment equal to three times Legacy MTS' Earnings Before Interest, Taxes and Depreciation for the year ending December 31, 2023, up to a maximum earn-out payment of $1 million (adjusted to reflect net working capital as of the closing date).Rob Phythian, Chief Executive Officer of SharpLink stated, \"We are pleased to close this transaction, which represents yet another important milestone in SharpLink's value creation plan and enables us to continue focusing on our core business. Although SharpLink will continue to be an Israeli corporation until we complete our planned redomestication initiative to transition from being an Israel corporation to a Delaware corporation, we no longer meet the tests to qualify as a foreign private issuer under the securities laws. As a result, effective January 1, 2023, we will be required to comply with the reporting requirements under the rules and regulations of the Securities Exchange Act of 1934, as amended, applicable to US domestic companies. Through the filing of Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K, and other required SEC filings, we expect to provide our shareholders and the investment community, at large, with more timely updates on our financial performance and ongoing business development strategies.\"S. Friedman, Abramson & Co. acted as Israeli legal counsel to SharpLink. The law office of Seffi Shemesh served as legal counsel to MTS Techn...