Wondr Gaming (CSE: WDR) inked the definitive agreement on Monday regarding its previously announced plans to acquire Gamelancer, Inc. The resulting merger is set to change its name for the latter, including its symbol to “GMNG” at the Canadian Securities Exchange.
The acquisition still consists of issuing 212,338,900 Wondr Gaming common shares, equivalent to roughly 49% equity in the firm. But the company has now increased the cash component of the transaction to US$12.0 million, of which US$7.0 million is to be paid upon closing, US$2.5 million in six months, and a further $2.5 million on the first year anniversary of the closing.
The company said it plans to satisfy the upfront initial cash payment with its cash on hand.
Post-acquisition, Gamelancer co-founder Razvan Romanescu will be appointed to the resulting firm’s board and will also serve as Chief Strategy Officer.
Gamelancer, touted as the “largest global GenZ social media network in gaming,” had total assets of US$1.6 million as of December 31, 2021. Based on the last trading day, the transaction is valued at roughly US$25.9 million.
The parties expect the transaction to close on or around April 1, 2022.
Wondr Gaming last traded at $0.14 on the CSE.
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