Sydney, Australia, Thursday 7th June 2018 - The Board of iCandy Interactive Limited ("iCandy")(ASX:ICI) is pleased to announce that it has entered a legally binding Term Sheet ("Term Sheet") with eSports and Blockchain technology company, eSports.com Group AG ("eSports.com") and existing shareholder Fatfish Internet Group Limited ("Fatfish") (ASX:FFG), whereby eSports.com will invest USD$1M into iCandy.
Highlights:
- iCandy has signed a legally binding Term Sheet with eSports and blockchain company eSports.com and Fatfish Internet, whereby eSports.com will invest USD $1M into iCandy
- eSports.com will be investing into iCandy at a premium to the current iCandy share price
- The synergies between iCandy and ESports.com will allow the ESports.com products and services to be offered to the extensive iCandy network of gamers
eSports also known as electronic sports, competitive (video) gaming, professional (video)gaming, or pro gaming, is a form of competition using video games. Most commonly, eSports take the form of organized, multiplayer video game competitions, particularly between professional players.
Incorporated in Germany, eSports.com is an esports and blockchain company that focuses on the eSports market that attracts a fan base across Europe, Asia, North and South America of over 360 Million1 people. With eSports emerging as a fast growing segment of the video games industry, iCandy is strongly positioned for growth through its partnership with eSports.com.
- eSports.com agrees to invest USD $1M (Approximately AUD $1.32m) into iCandy in exchange for 16.5 million newly issued ordinary shares of iCandy, with an issue price of AUD $0.08 per share. This investment represents 5.18% of iCandy’s fully diluted capital structure, which also accounts for the imminent share issue relating to the acquisition of the game portfolio of Animoca Brands Ltd (ASX:AB1), as announced on the 15th of November 2017.
- Under the Term Sheet, payments from eSports.com will take place over five equal tranches of USD $200,000, with the first tranche payable with 7 days of signing a Definitive Agreement which is due to be signed within 14 days of the execution of the Term Sheet. The remaining tranches will be take place over the four-month period commencing from 1 August 2018.
- Under the Term Sheet, Fatfish will exchange 45.6m of its ordinary shares in iCandy for ordinary shares in eSports.com. The iCandy ordinary shares being exchanged by Fatfish are to be valued at AUD $0.10 per share. The transaction will result in Fatfish owning approximately 3.45% of the total enlarged issued share capital of eSports.com.
- Upon completion of both transactions, eSports.com will own 19.5% of iCandy.
- eSports.com will appoint one director onto the Board of iCandy to facilitate a close collaboration between the businesses.
iCandy shares were last traded at AUD$0.06 per share on 6th June 2018.
After the transactions are complete, eSports.com will work on various strategic business collaborations with iCandy, including a potential collaboration with Nitro, a cryptocurrency and blockchain project in which iCandy announced its involvement in October 2017. iCandy has a publishing arrangement with Nitro to be the publisher for games titles funded or developed through Nitro’s online marketplace.
In addition to this, the eSports.com products and services offering will be promoted through the iCandy gamer network, which currently exceeds 23 million gamers.
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