Enthusiast Gaming Holdings Inc. (TSX: EGLX) announced today that it has closed the previously announced acquisition of gaming platform Tabwire. The acquisition price is reported to be US$11.0 million in cash and stock.
Under the acquisition terms, Enthusiast Gaming paid US$5.0 million in cash and issued 790,094 common shares priced at C$9.51 per share for aggregate proceeds of approximately US$6.0 million, amounting to total proceeds of US$11.0 million.
The issuance of common shares is subject to a three-phase release as per the agreement: 66.66% of the shares will be released 12 months after the closing date, 16.66% will be released after 15 months, and the remaining 16.67% will be released after 18 months.
The company relayed that the acquisition is integral in the development of its proprietary gaming-centric social network platform. Currently codenamed Project GG, the freemium subscription-based offering will feature a social networking feature across Enthusiast Gaming assets. Tabwire’s technology and data platform will be a part of moving the development forward.
Tabwire is a proprietary technology and data platform that owns Tabstats, a website that allows gamers to monitor their game data across different platforms in real-time.
Enthusiast Gaming Holdings last traded at $7.08 on the TSX.
Information for this briefing was found via Sedar and Enthusiast Gaming. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.