Torque Esports (TSXV: GAME) and UMG Media (TSXV: ESPT) announced this morning that the two parties have entered into a binding letter of intent whereby Torque will acquire UMG Media. The transaction combines two growing players in the esports sector, and follows a series of transactions conducted by Torque Esports, whom recently changed its name from Millennial Esports.
Under the proposed acquisition, UMG Media shareholders collectively will receive 4,329,445 shares of Torque Esports, with no cash being exchanged for shares. While not included within the release, the ratio works out ten UMG Media shares being exchanged for one Torque Esports share. The exchange follows two share consolidations conducted this year by that of Torque.
As part of the proposed transactions, several conditions are required to be met, including an approval by two thirds of UMG Media shareholders. Additionally, UMG is required to complete a $1.2 million private placement, at a price per share of $0.12. Torque Esports is also required to close on its previously announced 51% stake in AllInSports.
The transaction is expected to close prior to UMG Media completing several previously announced acquisitions. The closing of those acquisitions is unclear at this time, however if they do close payment is to take the form of Torque shares.
The transaction is expected to bring together two esports forms that are collectively focused in racing, first person shooter, and sports titles. The basis behind the transaction appears to be that of UMG’s broadcast capabilities, which are to bolster the distribution of Torque’s World’s Fastest Driver and other events.
A definitive agreement is expected to be entered by the two parties by October 28.
Information for this briefing was found via Sedar, UMG Media and Millennial Esports Corp. 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.
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