Form 8-K - Current report
August 01 2023 - 4:59PM
Edgar (US Regulatory)
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0001886894
2023-07-26
2023-07-26
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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (Date of earliest event reported): July 26, 2023
Snail,
Inc.
(Exact
name of registrant as specified in its charter)
Delaware |
|
001-41556 |
|
88-4146991 |
(State
or other jurisdiction
of
incorporation) |
|
(Commission
File
Number) |
|
(IRS
Employer
Identification
Number) |
12049
Jefferson Blvd
Culver City, CA 90230
(Address
of principal executive offices) (Zip Code)
+1
(310) 988-0643
(Registrant’s
telephone number, including area code)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
Class
A Common Stock, $0.0001 par value per share |
|
SNAL |
|
The
Nasdaq Stock Market LLC |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☒
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item
1.01 Entry into a Material Definitive Agreement.
On
July 26, 2023, Snail Games USA Inc. (the “Company”) entered into a Cooperation Agreement (the “Cooperation Agreement”)
with Marbis GmbH (“Marbis”). All capitalized terms not otherwise defined herein have the same meaning given to such capitalized
terms in the Cooperation Agreement.
Pursuant
to the Cooperation Agreement, the Company agreed, among other things, for the period commencing on the date of the Cooperation Agreement
and ending on the expiration of the seven (7) year anniversary, to grant Marbis the exclusive, non-transferable, global, and irrevocable
(i) right to (A) provide the Company with official servers to host and run the games titled “Ark: Survival Evolved”
(“ARK SE”), “Ark: Survival Ascended” (“Ark SA”) and “Ark II” (“Ark
2”, together with Ark SA, Ark II and any and all future remakes, sequels, prequels, spin-offs, and other related contents, collectively
“Games”, each a “Game”) under the Ark 1 and Ark 2 license agreements between the Company and SDE Inc., and (B)
rent out private servers and community servers, (ii) license to use the server files, client keys, or any other, or other form of, data
in connection with (A) the administration and management of official servers, and (B) hosting and running the Games on private/community
servers (but specifically excluding the servers which continue to host Ark SE in its current version, which shall be governed by Section
6.2 of the Cooperation Agreement), and (iii) license to host and run the Games on private/community servers, it being understood that
Marbis shall be entitled to provide the aforementioned services through, and sublicense the aforementioned license to, its Affiliates
and/or third party subcontractors appointed by Marbis.
In
addition, subject to the terms and conditions of the Cooperation Agreement, Marbis has agreed to grant to the Company funding up to the
principal amount of $4,046,932, which includes the outstanding amount of $1,046,932 accrued in March 2023 through June 2023 the Company
has not made payment of to Marbis in connection with leasing official servers for the functional hosting of Ark SE to the Company. Pursuant
to the Cooperation Agreement, Marbis has agreed to provide the Company with funds in cash in an aggregate amount of up to $3,000,000
without discount and free of bank charges and costs (other than those levied by the receiving bank) to the Company within five (5) business
days after receipt of a written draw down notice to Marbis setting forth the relevant amount of tranches of up to $500,000 to be paid
to the Company.
The
foregoing summary of the Cooperation Agreement does not purport to be complete and is qualified in its entirety by reference to the full
copy of the Cooperation Agreement, which is attached as Exhibit 10.1 to this Current Report on Form 8-K (and incorporated into this Item
1.01 by reference).
Item
2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The
information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
Item
9.01 Financial Statements and Exhibits.
(d)
Exhibits.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
|
SNAIL,
INC. |
|
|
|
Date:
August 1, 2023 |
By: |
/s/
Jim S. Tsai |
|
Name: |
Jim
S. Tsai |
|
Title: |
Chief
Executive Officer |
Exhibit 10.1
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