Esports provider Intema Solutions has secured conditional approval from the Toronto Stock Exchange Venture Exchange (TSXV) to proceed with its proposed acquisition of Livestream Gaming, owner of esports betting platform Loot.Bet.
Intema in May signed a letter of intent to purchase Livestream for $14.75m, split $8.0m in cash, $4.0m issued by a secure vendor and $2.75m in a share issue floated on the TSXV.
A further $3m will be paid if Livestream hits certain revenue targets after the closing date, consisting of $7.5m worth of revenue in the first 12 months and $11.25m after 24 months.
The agreement was subject to a series of requirements in order to progress further, which, in addition to TSXV approval, also included securing a gaming license in the Isle of Man and filing a statement with Canada’s System for Electronic Document Analysis and Retrieval (SEDAR).
Having received conditional approval from the TSXV, Intema anticipates its common shares will resume trading in the near future, having been paused during the process.
Subject to the satisfaction of other closing condition, Intema expects the deal to complete before the end of the current calendar year.
“We understood when we entered into the agreement with Livestream and took the deliberate decision to complete this transaction as a TSXV Issuer that we would need to invest the time and resources to meet their enhanced requirements and fully commit to the process,” Intema president and chief executive Laurent Benezra said.
“We have aggressively advanced the proposed transaction since, thanks to the attentiveness and solutions-oriented approach of the TSXV, to secure conditional approval of our proposed transaction.”
Intema last month also announced that it had raised $10.0m to help fund the acquisition.
“Having closed a $10.0m non-brokered private placement and working towards a third and final tranche closing, we will be well funded for our near-term plans regarding the Loot.Bet platform as well as other initiatives, all aimed at unlocking value for our shareholders,” Benezra said.
Should the acquisition go ahead as expected, Intema will rename the combined operation as ‘React Gaming Group Inc.’, subject to shareholder approval.