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FansUnite Entertainment Incorporated, (TSX:FANS) (OTCQX : FUNFF), is pleased to announce that it has signed a definitive contract dated May 1,2023 pursuant to the which it sold all the shares of its wholly owned subsidiary, McBookie Limited (a Scottish private limited corporation) to a third party at arm’s-length.
FansUnite Entertainment Incorporated purchased McBookie Limited for $2.2 Million CDN, including $1,000,000 CDN cash in March 2020. FansUnite Entertainment Incorporated, three years later, will realize a significant profit when selling McBookie Limited in cash for more than five million CDN, which is over seven times the company’s record EBITDA of 2022.
McBookie Limited has seen three years of consecutive revenue growth. McBookie Limited, which is owned by FansUnite Entertainment Incorporated, has seen a 451% increase in gross wins and a 305% increase in turnover. McBookie Limited, under the strategic leadership of directors Paul Petrie, Damian Walker and others, has seen an increase in new player registrations, retention, and brand recognition.
Scott Burton, Chief Executive Officer of FansUnite Entertainment Incorporated said, “This is an excellent deal and result for McBookie Limited as well as for FansUnite Entertainment Incorporated.” In 2022, we began the process of streamlining our business and focusing it. We felt that it was the right time to leave the B2C market as the United Kingdom continues to tighten its regulations. We will now be able focus our resources on those segments of the business with the best growth potential and margins. This includes the United States market and affiliate opportunities. The sale of FansUnite Entertainment Incorporated will help the company move towards cash flow positivity. “I want to thank Paul for his efforts during their time at FansUnite Entertainment Incorporated, and wish him well as he continues to grow the McBookie Limited Brand.”
Petrie Walker and McBookie Limited will continue as directors in accordance with the terms of the agreement.
McBookie Limited Business
FansUnite Entertainment Incorporated, through McBookie Limited held a remote betting and gambling software license from the Gambling Commission. This allowed the company to operate as a B2C operator and B2B technology provider on the United Kingdom’s online gambling market.
Terms of Transaction
According to the terms and conditions of the definitive contract, the company has sold all the shares issued and outstanding of McBookie Limited for a total cash consideration amounting to US$4,016,544, minus a working capital adjustment. The purchase price is payable at closing.
Tekkorp Capital Advisors is a strategic advisor for the company. KWP LLP acted for the buyer as its legal counsel and DLA Piper Canada LLP acted on behalf of the company.
