VANCOUVER, BC, May 5, 2021 /CNW/ - Intema Solutions (TSXV: ITM)
(OTCMKTS: ITMZF) announced that it has signed a Letter of Intent
(LOI) to acquire 100% of Livestream Gaming – a real money gaming
esports company - based in Belize.
Intema is an emerging Esports and iGaming company, developing an
integrated platform in the fastest growing subsector of the digital
entertainment space.
"Physical contact sports have struggled," during the pandemic
reports NBC News, "collegiate Esports has thrived, with a new
influx of players and spectators".
"iGaming is one of the fastest developing markets in the world,"
states BG News, "It has a big share of the entertainment industry
and an impressive 10.3% Compound Annual Growth Rate with an
estimated 2021 value of $180
billion".
Livestream is a private Cyprus-based corporation which owns LOOT.BET,
a Curaçao licensed server-based real-money gaming platform and a
top brand in the world of esports betting.
Curaçao (pop. 157,000) is a Dutch Caribbean island, known as a
progressive gambling jurisdiction with pristine beaches.
"The Curaçao license is one of the oldest, most trusted and
influential gambling licenses in the online gaming market," states
Egaming Curacao, "allowing your gambling brand to operate globally
in several countries around the world".
Livestream's subsidiary, LOOT.BET - focused on live betting and
online gaming – has 450,000+ registered users.
With an operational and software development team of 50
employees, LOOT.BET sponsors professional tournaments and teams and
also partners with esports operators, studios and influencers.
For the year ended December 31,
2020, Livestream's unaudited financial statements showed
gross gaming revenue CND $4.8 million
and a net profit of CND $114,792.
Most of this revenue came from gamers in Europe and Asia.
LOOT.BET betting handle was CND $92.2
million for the year ended December
31, 2020.
"LOOT.BET will be a significant part of our ecosystem," states
Laurent Benezra, President and CEO
of Intema, "which now consists of not only esports betting, but
also peer-to-peer gaming, esports tournaments and advertising
through HypeX.gg, Advertiise and TheSMACK.gg.
Livestream, HypeX.gg, Advertiise and TheSMACK.gg are expected to
be complementary drivers of ITM's future revenue growth.
"Intema was a logical next step for LOOT.BET to pursue its
growth, as it will allow us to expand into new markets in
North America and benefit from
synergies with complementary businesses to drive more traffic and
thus more revenue," stated Peter Zhalov, CEO of Livestream.
Proposed Transaction Summary
The LOI anticipates that Intema will pay $14.75 million to Livestream as follows:
$8 million in cash, $4 million by the issuance of a secured vendor
take back note of Intema bearing 12% interest and $2.75 million payable by the issuance of Intema
common shares.
Intema is entering the Esports industry through acquisitions
that compliment its existing technology.
On February 9, 2021 ITM announced
that it has acquired 100% of HypeX.gg for a cash payment of
$75,000 and 1,625,000 common shares
of Intema.
The retail side HypeX.gg is an Esports tournament and social
platform. The commercial side HypeX is a next-gen advertising
platform specializing in endemic & non-endemic advertising
opportunities.
On April 14, 2021 ITM announced
that it has signed an L.O.I. to acquire 100% of Advertiise
Technologies, a private corporation with global operations (25,000
users in 40 countries).
Advertiise Technologies specialises in peer-to-peer advertising
marketplace development using blockchain and AI technologies to
connect media buyers and media suppliers across all advertising
channels without the need for an intermediary.
"The global Esports market was valued at USD $1.1 billion in 2019," states Grand View
Research, "and is expected to expand at a CAGR of 24.4% to reach
USD $6.8 billion in 2027.
Industry growth drivers include increasing popularity of video
games, rising awareness of Esports and increasing mobile usage in
emerging countries.
"People like to compete," Benezra reminded Equity Guru's
Jody Vance, "Esports lets you
compete with no borders. You can go on-line, compete with a person
in China or Japan or next door."
The global online gambling (iGaming) market size is expected to
reach USD $102.97 billion by 2025,
according to a report by Grand View Research.
"Viewership for the 2019 Esports League of Legends tournament
was about 100 million people," stated Global Stocks News CEO
Guy Bennett, "It was broadcast in 16
languages and across 20 platforms".
"By contrast, the 2020 NBA final was available exclusively on
ABC, and was watched by 7.5 million people," added Bennett.
ITM intends to raise at least $10
million through a private placement, at a price "to be
determined in the context of the market".
It is currently anticipated that the proposed acquisition of
Livestream will close in Q3, 2021.
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SOURCE Global Stocks News
