YDX Innovation Signs Letter of Intent to Acquire Experienced esports Company – BEAT Gaming Corp.
VANCOUVER, B.C., 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.
Currently three divisions are part of the YDX Family:
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. The Company will release an exclusive game with Disney featuring Mickey Mouse. The release date is set for Q1 2020.
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
firstname.lastname@example.org | www.ydxinnovation.com | ww.youtube.com/ydreamsglobal
Although the projects mentioned above represent a growing trend and focus on creative VR and other sources of revenues for the Company, revenues and other financial metrics of such projects on an individual basis are not expected to be material to the Company and are generally consistent with other recently completed projects and those in the Company’s current pipeline.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
This communication contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding our current and future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations as well as a list of risk factors that we deem relevant are disclosed in the documents we file from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on our current assumptions, estimates and opinions and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. We do not undertake any obligation to update forward-looking statements should our assumptions, estimates or opinions change, other than as required by law and readers are advised not to place undue reliance on forward-looking statements.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as,
“forward‐looking statements”. Forward‐looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.