VANCOUVER, B.C. / ACCESSWIRE / March 23, 2020 / YDX Innovation Corp. (TSX-V:YDX)(OTC:YDRMF)(FSE:A2PB03) (“YDX” or the “Company“), is pleased to announce it has signed a letter of intent to acquire all of the shares of BEAT Gaming Corp. (“BEAT“), an arm’s length private Toronto-based esports organizer and management company. The proposed acquisition is intended to augment the Company’s existing and growing esports division.
BEAT is an experienced Canadian esports company that has organized internationally recognized events such as the Dota 2, Overwatch and PUBG BEAT Invitational. BEAT was founded in 2011 by Bill Elafros and Anthony Truong, and has organized over 30 professional and semi-pro esports events, which have reached over 40 million views globally. BEAT is one of the oldest and most established event organizers in Canada, having international experience and being one of the first third-party companies to receive authorization to organize Overwatch tournaments. BEAT organized the first large scale Canadian Dota 2 event at the Bell Centre in Montreal, Quebec. Events organized by BEAT have received extensive coverage from outlets such as ESPN, TSN & Score esports and have had successful engagements with Blizzard Entertainment, Valve, Twitch, AMD, SteelSeries and more. In addition to organizing its own events, BEAT provides esports consulting, management and tournament organization services out of Toronto, Ontario, Canada.
Daniel Japiassu, CEO of YDX Innovation stated, “The Company is excited to add this acquisition to its existing esports division and existing work with its ‘Game On’ esports festival. Going forward, the Company intends to focus on a prudent combination of organic growth and strategic acquisitions that increase the number of technology based verticals with an emphasis on revenue growth, gross margins and EBITDA. We anticipate that BEAT’s expertise and experience will positively contribute to our existing team. Esports and virtual reality are a great combination and we believe this operation will allow us to introduce new products to the market.”
The letter of intent is non-binding and provides for an exclusivity period of 90 days during which time the parties have agreed to work together to sign a definitive agreement within 60 days. In consideration for the acquisition of BEAT, the Company has agreed to pay aggregate cash consideration of $600,000 and the allotment and issuance of 3 million shares in the capital of the Company. The cash consideration is payable in tranches with $150,000 payable upon closing, a further $150,000 within 60 days of closing and the remaining $300,000 payable in installments of $75,000 every three months from closing with the last cash payment occurring 12 months from closing.
The acquisition of BEAT is anticipated to be an Expedited Acquisition under the policies of the TSX Venture exchange. The acquisition is subject to routine conditions precedent for similar transactions, including entry into a binding definitive agreement, approval by the TSX Venture Exchange and respective due diligence.
About YDX Innovation
YDX Innovation Corp. (TSXV- YDX :: www.ydxinnovation.com) is a technology company that develops products and services and is an expert in immersive technologies like Augmented and Virtual Reality, eSports events and Interactive Exhibitions under the following three divisions:
Arkave VR Arena – https://sales.arkavevr.com/ – a gaming platform that brings the most immersive Virtual Reality experience to Location Based venues with a highly scalable business model.
YDreams Global – www.ydreamsglobal.com – have developed over 1,300 interactive experiences for clients all over the world such as Disney, NBA, Adidas, Cisco, Nokia, Nike, Mercedes-Benz, Coca-Cola, Santander, AmBev, Qualcomm, Unilever, City of Rio and Fiat.
Game On Festival – www.gameonfestival.com – is a new event under development by the Company that combines eSports Tournaments with a large Interactive Exhibition about the videogame industry and its history.
Director and CEO
This news release may contain “forward-looking statements” within the meaning of applicable Canadian securities laws, including, without limitation: the entry into a definitive agreement, the closing of the proposed transaction, receipt of stock exchange approval, the introduction of new products, and the intention to expand business through organic growth and future acquisitions based on revenue, margins and EBITDA. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. The Company’s statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of the Company’s control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding the proposed acquisition, including: that the Company’s assumptions in making forward-looking statements may prove to be incorrect; adverse market conditions; the inability to finance future growth and cash payments under the agreement; that future results may vary from historical results; and that market competition may affect the outcome of the business, results and financial condition of the Company. Except as required by securities law, the Company does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
View source version on accesswire.com: