Melbourne, Australia–(Newsfile Corp. – December 18, 2020) – SQID Technologies Limited (CSE: SQID) (“SQID”) is pleased to announce it has entered into a letter of intent (“LOI”) to acquire 50% of ICON Esports Pty Ltd. (“ICON”).
Pursuant to the LOI, SQID has agreed to invest AUD $2,250,000 for a 50% equity interest (on a fully-diluted basis) in ICON (the “Transaction”). ICON runs The Chiefs Esports platform, a premier Electronic Sports club in Australia, featuring top teams in various competitive video games. Founded in August, 2014 by the members of the top League of Legends team in Australia, the Chiefs have endeavoured to achieve excellence in esports and gaming entertainment.
ICON generated unaudited AUD$501,377 revenue in June 30, FY2020 and achieved strong growth in H1, FY2021 with unaudited revenue of AUD$426,663 by running marketing campaigns for global brands such as Intel, Red Bull, Marvel ANZ, Singtel (OPTUS) and L’Oréal. Upon completion of the Transaction, SQID intends to integrate its payment platform into the ICON platform forming a single unified solution for payments and marketing campaigns. SQID has an existing solution of APIs and software plugins for mobile applications and upon completion of the Transaction, expects a relatively simple integration between to the two platforms.
Completion of the Transaction is anticipated to provide SQID with a material increase in revenue, a strong sales pipeline and broaden its product offering. SQID anticipates the integration of SQID’s payment processing platform will help ICON launch new services to generate more revenue upon completion of the Transaction. The investment of AUD$2,250,000 is expected to be used to expand the sales and business development activity and to support growth.
Pursuant to the LOI, in recognition of the management time and cost commitment with respect to the Transaction, ICON has granted SQID a period of exclusivity for two months from the date of the LOI. In addition, upon completion of the Transaction, it is expected that two nominees from SQID and two nominees from ICON will comprise the board of directors of ICON.
Completion of the Transaction may be subject to a number of conditions including, but not limited to, satisfactory due diligence, the completion of a definitive agreement in respect of the Transaction, customary closing conditions, director and shareholder approval, if necessary, and receipt of all regulatory and third party approvals.
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