Intema to acquire the BH Esports Team
- Intema signs letter of intent to acquire Team BloodHounds Inc., owner of Team BH esports team
- In May 2021, Team BH influencers had a total of 8.8 million subscribers on their three main platforms. – YouTube, Instagram and Twitter
- Team BH is the second most followed esports brand in Canada and one of the most influential Fortnite teams in North America, with a current total brand of 775,000+ people on YouTube, Instagram and Twitter
- Fast-growing esports market expected to reach $ 1.86 billion by 2026 at a CAGR of 15.1%1
MONTREAL, June 22, 2021 (GLOBE NEWSWIRE) – Solutions Intéma inc. (“Intema“or the”society“) (TSXV: ITM, OTCMKTS: ITMZF) is pleased to announce that it has entered into an arm’s length letter of intent dated June 21, 2021, with Matteo Di Penta regarding a proposed transaction (the”Proposed operation“) whereby Intema will acquire the entire interest of Mr. Di Penta in the capital of Team BloodHounds Inc. (“TBH“). In turn, Mr. Di Penta will ensure that the other shareholders of TBH (collectively with Mr. Di Penta, the “”TBH shareholders”) Sell all their TBH titles to Intema. Mr. Di Penta owns 95% of all issued and outstanding securities of TBH, directly and indirectly.
“The acquisition of Team BH brings another major complementary component to our esports ecosystem,” said Laurent Benezra, President and CEO of Intema. “Matteo created Team BH in 2018 from scratch and quickly developed it to 23 influencers / players and count, with a total of 8.8 million subscribers across all of his influencer platforms. Team BH is known as the second most followed Fortnite esports team in Canada, with over 775,000 followers on its major social platforms. He has also been successful in promoting his brand through collaborations and sponsorships with leading brands such as Roots, Champion and G Fuel Energy, generating increased revenue over the years. We believe that Team BH will play a large-scale role in the future success of Intema.
“Team BH is striving to establish itself as a recognized leader in esports and we believe that Intema, thanks to its new ecosystem, will help us achieve this goal,” said Matteo Di Penta, Founder and CEO of Team BloodHounds Inc. “This transaction will create many opportunities for Team BH to develop its fan base, promote its brand and contribute to Intema’s achievements, as we will now have access to the expertise of complementary businesses and activities. such as tournaments and esports betting as well as advertising.
Fortnite is an online video game developed by Epic Games and released in 2017. Fortnite is an extremely popular free-to-play battle royale game that pits up to 100 players against each other in a fight to the death. The game is played by amateurs and professionals offering many game modes for every type of player, with the best players participating in tournaments around the world. The cumulative Fortnite competitions prize pool was US $ 7.88 million in 2020, making it one of the largest cumulative esports prize pools among online games that year.2.
Summary of the proposed transaction
The letter of intent states that the Company and the shareholders of TBH will negotiate and enter into a definitive agreement with respect to the proposed transaction (the “Final agreement“) allowing Intema to acquire all of the issued and outstanding shares of TBH Securities for a maximum consideration of C $ 621,000 (the” “Purchase price“), subject to adjustment, payable to shareholders of TBH in proportion to their interests in TBH.
Intema will pay a cash consideration of CA $ 121,000, all to be disbursed as follows:
|(I)||On the closing date of the proposed Transaction (the “Closing Date“), Intema will pay C $ 60,500 to shareholders of TBH; and|
|(ii)||Three months after the closing date, Intema will pay C $ 60,500 to shareholders of TBH.|
The balance of C $ 500,000 will be payable by the issuance of 1,000,000 common shares of Intema (each a “Share”) At a deemed price of $ 0.50 per share. In addition to any mandatory holding period, Shares issued on the Closing Date will be subject to the following voluntary resale restrictions:
|(I)||25% of the shares will be subject to a nine-month resale restriction after the closing date;|
|(ii)||25% of the shares will be subject to a resale restriction of 12 months after the closing date; and|
|(iii)||The last 25% of the shares will be subject to a resale restriction of 15 months after the Closing Date.|
The purchase price was negotiated without cash or debt. Any outstanding debt, net of cash at the closing date, will be subject to an adjustment to the cash payable at the closing date.
The proposed transaction is subject to the completion of mutual due diligence, the signing of a definitive agreement and the approval of the TSX Venture Exchange.
Intema is at the forefront of esports and iGaming with a collection of valuable assets that deliver a diverse and fast-paced range of entertainment ensuring our leadership position in the industry. We strive to connect our users to gaming platforms that bring action, exciting results and endless fun. And we seamlessly connect partners to our robust communities by intelligently using data to ensure maximum engagement and reward for all. Our current ecosystem includes HypeX, Advertiise, TheSMACK, and eFlyerMaker. For more information, please visit our corporate website at intema.ca
On the retail side, HypeX.gg is an esports tournament and social platform. Commercially, HypeX is a next-generation advertising platform specializing in endemic and non-endemic advertising opportunities. HypeX has refined the demand for esports into three broad categories of individuals: athletes, audience members, and content creators. By designing features and incentives to attract these three categories, HypeX creates transparent advertising opportunities for retail brands, organizations and businesses. As part of these commitments, HypeX is able to drive brand-specific consumer behaviors, delivering significantly higher ROI on their advertising budget. In addition to having 50,000 users, HypeX has organized tournaments and established partnerships with more than 20 different brands and organizations internationally. hypex.gg
Advertiise is an advertising marketplace that connects buyers and sellers of new and unique advertising opportunities as well as traditional advertising inventory that exists across all advertising media. He has been a pioneer in the development of the peer-to-peer advertising market and continues to advance innovative measures to evolve the advertising industry through Blockchain technology and ledger-based AI. Advertiise is dedicated to the expansion and democratization of advertising opportunities at local, regional and global levels and is the “House of Advertising Space”. advertiise.com
TheSMACK.gg is a B2B and B2C provider of esports related products and services enabling retail brands as well as individuals to participate in endemic and non-endemic advertising opportunities. TheSMACK.gg range of retail services includes product branding, digital advertising and marketing campaign design. With access to a wide range of assets, we can be sure to increase your brand’s engagement and equity as part of the niche gaming demographics. LeSMACK.gg
eFlyerMaker is a self-service bilingual (EN / FR) email platform that allows you to create personalized, professional, and targeted email campaigns in minutes, leveraging email marketing to stay in touch with your customers. clients. Our software meets the highest standards in email marketing. We fully comply with all CASL (Anti-Spam Legislation of Canada) and GDPR (General Data Protection Regulation). flyermaker.com
This press release may contain “forward-looking statements” within the meaning of applicable Canadian securities laws, including, without limitation: the signing of a definitive agreement, any potential financing and the successful closing of the proposed transaction. . Forward-looking statements are necessarily based on a number of estimates and assumptions which, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are necessarily based on a number of estimates and assumptions which, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These statements can generally be identified by the use of forward-looking words such as “may”, “should”, “will”, “may”, “intend”, “estimate”, “plan”, “anticipate” , “expect”, “believe” or “continue”, or the negative of these or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to differ materially from the estimated future results, performance or achievements expressed or implied by such forward-looking statements and forward-looking statements. statements are not guarantees of future performance. The statements of the Company expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties and conditions, many of which are beyond the control of the Company, and you should not place undue reliance on these statements. Forward-looking statements are subject in their entirety to the risks and uncertainties inherent in the proposed transaction, including: that the Company’s assumptions in formulating forward-looking statements may prove to be incorrect; unfavorable general market conditions and competition; the inability to finance operations and / or secure future strategic investments necessary for the implementation of new technologies; the inability to build a sustainable, conscientious business with a stronger online presence through new products in esports and games; inability to obtain or retain gaming license (s); and that market conditions related to the COVID-19 pandemic may adversely affect the results of the business or operations of the Company, including its results and financial condition. Except as required by securities law, the Company assumes no obligation to update or revise forward-looking statements, whether as a result of new information, events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
1 Source: Esports Market Report, Assessment Reports, February 24, 2021
2 Source: Statista, Fortnite Global Tournaments 2020 Annual Prize Pool, March 5, 2021