Canadian iGaming platform, Tiidal Gaming Group Corp, announced on the 13th of March that its affiliate, Tidal Gaming Holdings Inc, has signed a purchase deal and stock sale with Entain Holding Limited. The latter is a well-known UK-based iGaming operator offering services to many regions, including Canada.
Based on the agreement terms, Tiidal Holding will sell all the shares of Tidal gaming NZ limited, its operating affiliate referred to as Sportsflare.
How Much Will the Purchase Cost?
Based on the purchase agreement, the total amount is $13.250.000, subject to standard transaction adaptations. However, the purchase price will be held by Tiidal in escrow for 180 days after closing. During this period, Tiidal can access up to 20% of the funds to cater for any claims or capital adaptations by Entain.
Both parties have agreed to the transaction without being too involved with one another. However, the agreement is bound by the conditions typical for transactions of this nature – involving the shareholders of Tiidal and the receipt of all required consents.
What’s more, there is a termination fee of $500,000 attached to the purchase agreement. Tiidal Holdings will pay this fee to Entain if certain terminations occur.
Statement from the CEO of Tiidal
Thomas Hearne, Tiidal’s CEO, stated that he was proud of what the team at Sportsflare had achieved over the past year. He added that following the capital markets environment, they believed the best move was to find an ideal home for Sportflare to ensure Tiidal shareholders get maximum value.
He concluded by stating that the board of directors were confident that Sportsflare becoming a part of Entain was the best solution for partners and employees in the long run.
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