LAS VEGAS, NV -- December 3, 2021 -- InvestorsHub NewsWire --
Golden Matrix Group, Inc. (OTCQX:
GMGI) (the “Company” or “GMGI”), a developer and licenser of
social gaming platforms, systems and gaming content, today
announced it has entered into a purchase agreement to acquire an 80
percent controlling ownership interest in UK-based
RKingsCompetitions Ltd. (http://www.rkingscompetitions.com/ “RKings”), one
of Ireland’s and the United Kingdom’s leading independent online
competition companies. RKings is a well-established
business-to-consumer (B2C) skilled tournament company.
RKings’ Business Highlights:
• Generated estimated revenues in excess of $29 million USD and
an annual net income of more than $2.4 million USD during the
fiscal year ending October 31, 2021.
• Total followers across all social media platforms in excess of
467,000.
• Total active clients in excess of 25,000 per month.
• Total prizes awarded during 2020 and 2021 more than $54
million USD.
• Prizes include residential properties, luxury and exotic motor
vehicles, holiday packages, technology packages and cash.
According to terms of the agreement, GMGI will acquire an 80%
ownership interest in RKings for a payment of approximately $10.6
million USD with approximately 50% payable in cash and remainder in
restricted shares of GMGI common stock (valued at $8.00 USD per
share), as well as additional consideration to be paid equal to 80%
of R Kings’ net asset value as of October 31, 2021, determined at
the conclusion of audit thereof, payable in shares of common
stock.
Additionally, GMGI will be granted an option to purchase the
remaining 20 percent interest of RKings subject to certain
requirements.
The agreement also includes an additional earnout opportunity
for the sellers to earn up to 4 million GBP of additional
consideration, in the event certain post-closing EBITDA targets are
met during the year ended October 31, 2022, payable in cash or
stock (at $8.00 USD per share), at GMGI’s option.
The purchase is subject to customary closing conditions which
are expected to be satisfied in the next several days.
“We are very excited to move forward in executing our strategy
to acquire businesses which we believe complement our core
technology and expertise and allow us to leverage our technology to
grow revenues and create value for our shareholders,” said GMGI CEO
Brian Goodman, who continued, “We believe that this will be an
important acquisition and that RKings will not only add revenue to
the Company, but will also be profitable and generate positive cash
flow. Additionally, this marks our entry into a new regulated
market in the B2C space, and what we expect will be the beginning
of a meaningful expansion into geographic markets outside of the
Asia Pacific (APAC) region.”
“We hope that this acquisition will be a catalyst to our overall
growth, as we anticipate rolling out RKings offerings to other
global markets in the future, whilst leveraging GMGI’s
state-of-the-art player acquisition and loyalty technology. In
addition to strengthening revenues and profitability, the combined
company is expected to benefit from valuable cross-selling
opportunities,” stated Mr. Goodman.
"We are very excited to work with the team at GMGI and be a part
of their ongoing success,” said Paul Hardman and Mark Weir,
founders of RKings, who continued, “Beyond contributions of
expected revenues and profits to GMGI’s existing business, we
believe this strategic relationship provides a significant
opportunity to grow RKings’ existing business in additional
markets.”
The acquisition, when closed, will have an effective date of
November 1, 2021.
Full details of the purchase agreement and related terms are
outlined in the Current Report on Form 8-K which GMGI filed today
with the Securities and Exchange Commission.
About RKings
Based in Northern Ireland, RKings is a prize competition business
offering customers in Ireland and the United Kingdom paid for
entry, and free entry, routes to enter prize competitions in order
to win a range of consumer products as prizes. Customers can access
competitions via iOS or Android apps as well as online where they
can win prizes ranging from super cars through to luxury
holidays.
The competitions are currently open only to residents of Ireland
and the United Kingdom.
About Golden Matrix
Golden Matrix Group, based in Las Vegas NV, is an established
gaming technology company that develops and owns online gaming IP
and builds configurable and scalable white-label social gaming
platforms for its international customers, currently located
primarily in the Asia Pacific region. The gaming IP includes tools
for marketing, acquisition, retention and monetization of users.
The Company's platform can be accessed through both desktop and
mobile applications. Our sophisticated software automatically
declines any gaming or redemption requests from within the United
States, in strict compliance with current US law.
Forward-Looking Statements
Certain statements made in this press release contain
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). These
forward-looking statements represent the Company's current
expectations or beliefs concerning future events and can generally
be identified using statements that include words such as
"estimate," "expects," "project," "believe," "anticipate,"
"intend," "plan," "foresee," "forecast," "likely," "will," "target"
or similar words or phrases. These forward-looking statements are
subject to risks, uncertainties and other factors, many of which
are outside of the Company's control which could cause actual
results to differ materially from the results expressed or implied
in the forward-looking statements, including, but not limited to,
the ability of the parties to close the purchase agreement
described above on the terms set forth in, and pursuant to the
required timing set forth in, the agreement, if at all; the
occurrence of any event, change or other circumstances that could
give rise to the right of one or all of the parties to terminate
the purchase agreement; the effect of such termination; the ability
to meet the closing conditions of the purchase agreement on a
timely basis or at all; the impact of the COVID-19 pandemic on the
Company; the future revenues and profitability (or
non-profitability) of RKings following the closing, the Company’s
ability to integrate the operations of RKings into the Company’s
current operations and costs associated therewith, the Company’s
ability to scale RKings, potential synergies and benefits expected
in connection with the planned acquisition, and additional
regulations, restrictions and requirements the Company will become
subject to as a result of such planned acquisition; the need for
additional financing, the terms of such financing and the
availability of such financing; the ability of the Company to
manage growth; disruptions caused by acquisitions (including the
acquisition described above); the Company’s ability to complete
acquisitions on favorable terms, if at all; the Company's reliance
on its management; the fact that the Company's chief executive
officer has voting control over the Company; related party
relationships; the potential effect of economic downturns and
market conditions on the Company's operations and prospects; the
Company's ability to protect proprietary information; the ability
of the Company to compete in its market; the Company's lack of
effective internal controls; dilution caused by efforts to obtain
additional financing and complete acquisitions; the effect of
future regulation, the Company's ability to comply with regulations
and potential penalties in the event it fails to comply with such
regulations; the risks associated with gaming fraud, user cheating
and cyber-attacks; risks associated with systems failures and
failures of technology and infrastructure on which the Company's
programs rely; foreign exchange and currency risks; the outcome of
contingencies, including legal proceedings in the normal course of
business; the ability to compete against existing and new
competitors; the ability to manage expenses associated with sales
and marketing and necessary general and administrative and
technology investments; and general consumer sentiment and economic
conditions that may affect levels of discretionary customer
purchases of the Company's products, among others. Forward-looking
statements speak only as of the date they are made. The Company
undertakes no obligation to publicly update any of the
forward-looking statements, whether because of new information,
future events or otherwise, made in this release or in any of its
Securities and Exchange Commission (SEC) filings, whether as a
result of new information, future events or otherwise that occur
after that date, except as otherwise provided by law.
Consequently, you should not consider any such list to be a
complete set of all potential risks and uncertainties. More
information on potential factors that could affect the Company's
financial results is included from time to time in the
"Forward-Looking Statements," "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections of the Company's periodic and current filings
with the SEC, including the Form 10-Qs and Form 10-Ks, filed with
the SEC and available at www.sec.gov.
The financial information of RKings provided above is based on
information internally compiled by RKings and has not been reviewed
or audited by an independent auditing firm. As such, those amounts
are inherently uncertain and subject to change. For example, during
the course of the preparation of the final audited financial
statements and related notes for RKings, additional items that
would require adjustments to be made to the financial results
presented above may be identified. You should read this information
together with the final audited financial statements and notes
thereto relating to RKings, which GMGI plans to file in a Current
Report on Form 8-K/A in the future, once such financial statements
are complete.
The Company cautions that the foregoing list of important
factors is not complete. All subsequent written and oral
forward-looking statements attributable to the Company or any
person acting on behalf of the Company are expressly qualified in
their entirety by the cautionary statements referenced above. Other
unknown or unpredictable factors also could have material adverse
effects on the Company’s future results. The forward-looking
statements included in this press release are made only as of the
date hereof. The Company cannot guarantee future results, levels of
activity, performance, or achievements. Accordingly, you should not
place undue reliance on these forward-looking statements. Finally,
the Company undertakes no obligation to update these statements
after the date of this release, except as required by law, and
takes no obligation to update or correct information prepared by
third parties that are not paid for by the Company. If we update
one or more forward-looking statements, no inference should be
drawn that we will make additional updates with respect to those or
other forward-looking statements.
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Golden Matrix Group
info@goldenmatrix.com
www.goldenmatrix.com