Wedge Traffic becomes Playmaker’s first
affiliate platform business; diversifies revenue generating
capabilities and increases US market exposure; provides sports fans
with exclusive and contextual sports betting and casino offers to
enhance their iGaming experience; adds significant revenue and
EBITDA
Playmaker Capital Inc. (TSXV: PMKR) (“Playmaker”) the digital
sports media company that delivers authentic content experiences
through its portfolio of sports media and technology brands,
announced today that it has acquired Wedge Traffic Limited dba
Wedge (“Wedge”) to enhance its iGaming and affiliate presence in
the U.S. market. Wedge’s technical and affiliation expertise,
combined with Playmaker’s ecosystem of highly engaged sports fans,
will create significant value for online sportsbooks and casino
operators that are vying to acquire and retain customers, and
facilitate a safe and fulfilling iGaming user experience.
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the full release here:
https://www.businesswire.com/news/home/20221018005447/en/
PMKR Acquires Wedge Traffic (Photo:
Business Wire)
There are currently 21 US States, as well as the District of
Columbia and the province of Ontario, Canada, with regulated mobile
sports betting operational in North America. Additional States
including Ohio, Maine, Maryland, and Massachusetts are on track to
launch online sports betting activity in the near-term. By 2026,
the US sports betting and online casino market is projected to
generate revenue of US $24 billion, an increase of 213% over
2021.1
Although sports betting has experienced rapid growth since the
Professional and Amateur Sports Protection Act (PASPA) was lifted
in 2018, widespread adoption remains in its early days as over half
of US States, including Florida, California, and Texas which
account for approximately 90 million people, have yet to regulate
sports betting and iGaming. With the acquisition of Wedge,
Playmaker is evolving from a pure digital sports media business to
also becoming a leading affiliate for the newly regulating iGaming
industry across the U.S. and Canada. Additionally, the expertise
that Wedge brings to Playmaker will be leveraged for the newly
regulating Latin American markets.
Wedge employs unique and proprietary user acquisition tactics
and owns and operates eight web properties specifically curated to
deliver its audiences directly to regulated online sportsbook and
casino operators. With a core focus on the U.S. market, Wedge
properties display real time state-by-state promotions, welcome
bonuses, and one-time offers, among other opportunities related to
long-term betting lines. Through safe play content, such as
actionable insights and strategies, Wedge is facilitating a fun and
engaging experience while also fuelling the growth of online gaming
by offering sportsbooks and casinos targeted user acquisition
channels. Founders Dan Kersh and David Copeland will join
Playmaker’s senior leadership team and provide a net-new expertise
in iGaming affiliation, a key vertical that Playmaker has planned
to further activate.
The addition of Wedge enhances Playmaker’s ability to meet
increasing demand for sports betting and casino content. Playmaker
has identified affiliation as a gap in its value proposition to
serve as a valuable partner to iGaming operators. Wedge’s high
visibility calls to action drive outsized user conversion,
resulting in highly targeted marketing campaigns for Playmaker’s
partners and relevant offers for Playmaker’s users. By introducing
a new centre of excellence in affiliation, Playmaker will also be
able to supplement current revenue streams derived from its pure
sports-centric media brands to generate higher revenue per user
from online operators.
“We have been very clear that creating a centre of excellence in
affiliate was key to rounding out our offering as a leading sports
media business,” said Jordan Gnat, Playmaker CEO. “We look to
super-serve all of our partners, and Wedge allows us to better
serve critical customer segments, sports betting and iGaming
operators. The team at Wedge is superb and we could not be happier
having them join our family. Dan, David, Ryan and their team have
worked together for years and they have quickly built relationships
within Playmaker over the past few months. This gives us great
confidence that we can win together, leveraging the assets and
expertise already present in our Playmaker ecosystem.”
Wedge has built a significant presence in the U.S. and is
currently active in 16 states and in the province of Ontario.
Wedge’s widespread footprint minimizes reliance on any single
geography and positions the business to capture additional
tailwinds as North American markets continue to open up and mature.
Wedge currently has affiliate marketing relationships with 15
online sportsbooks and casinos, ensuring that its platforms supply
a significant number of new and recurring customers, including a
portion of the 46 million Americans – 18% of the US population –
that intend to place sports bets this year, to North America’s
largest iGaming operators. 2
The acquisition of Wedge is another example of Playmaker
executing its strategy of acquiring profitable businesses that
offer a new core competency to the Playmaker ecosystem. Wedge is
Playmaker’s 15th acquisition since April 2021 and will immediately
position Playmaker to pursue other growth opportunities across the
entire organization.
“Outside of the fact that Playmaker’s diverse portfolio of
brands will directly complement our business, there were two key
reasons for making the decision to join the Playmaker family,” said
Dan Kersh, Wedge CEO. “Firstly, they understand how to support and
accelerate data driven marketing within the iGaming sector.
Secondly, and perhaps of even greater importance, they appreciate
the value of creating a winning culture and how it must be
considered the heartbeat of any successful business.”
TRANSACTION DETAILS Pursuant to the terms of a share
purchase agreement dated October 17, 2022, Playmaker acquired 100%
of the shares of Wedge for aggregate consideration of approximately
U.S.$31.2 million (the “Transaction”). The purchase price
consideration consisted of a cash payment on closing of U.S. $8.5
million, the issuance on closing of 3,694,933 Playmaker common
shares (the “Playmaker Shares”) priced at CAD$0.75 per
Playmaker Share, and contingent consideration of approximately
U.S.$20.7 million. The contingent consideration consists of two
separate earn-out payments in an aggregate amount of approximately
U.S.$16.7 million (the “Earn-out Consideration”), payable to the
sellers upon achieving certain revenue and EBITDA targets in each
of the 12-month periods ending December 31, 2023 and December 31,
2024. The Earn-out Consideration is payable through a combination
of cash and common shares of Playmaker (the “Earn-out Shares”),
subject to the approval of the TSXV, and provided that the maximum
number of Earn-out Shares issuable to satisfy the Earn-out
Consideration is equal to an aggregate of 16,812,307 Earn-out
Shares. Additionally, as part of the contingent consideration, the
sellers are eligible for two separate deferred cash payments of
U.S.$1.5 million and U.S.$1.0 million if certain EBITDA thresholds
are achieved in each of 2023 and 2024, respectively, and two
separate milestone payments of U.S.$750,000 each if certain revenue
thresholds are achieved at any time following closing.
In connection with closing of the Transaction, an arm’s length
financial advisor of the vendors shall be entitled to 1.75% of the
aggregate consideration payable to the vendors pursuant to the
terms of a commission agreement between Wedge and the financial
advisor. All payments to the Financial Advisor shall come out of
the consideration otherwise payable to the vendors, and include the
same proportions of cash and common shares of Playmaker. In
addition, an arm’s length financial advisor to Playmaker shall be
entitled to a fee equal to 2.5% of the aggregate consideration
payable to the vendors pursuant to the terms of a letter agreement
between Playmaker and the financial advisor.
TSX VENTURE EXCHANGE DISCLAIMER Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS This press release may contain
forward-looking information within the meaning of applicable
securities legislation, which reflects Playmaker’s current
expectations regarding future events. The words “will”, “expects”,
“anticipates”, “believes”, “plans”, “intends” and similar
expressions are often intended to identify forward-looking
information, although not all forward-looking information contains
these identifying words. Specific forward-looking information
contained in this press release includes, but is not limited to,
statements relating to (i) the benefits expected to result from the
acquisition of Wedge by Playmaker, (ii) the future performance of
Wedge, including the achievement of certain earn-out targets and
its continued expansion and growth and (iii) other statements that
are not historical facts. Forward-looking information is based on a
number of assumptions and is subject to a number of risks and
uncertainties, many of which are beyond Playmaker’s control, which
could cause actual results and events to differ materially from
those that are disclosed in or implied by such forward-looking
information. Playmaker undertakes no obligation to update such
forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law.
ABOUT WEDGE Based in Glasgow, Scotland, Wedge is an
affiliate marketing business that was founded in 2019 by Dan Kersh
and David Copeland. In the year ended December 31, 2021, Wedge
generated revenue of US $2.9 million and net income before
interest, taxes, depreciation amortization (“EBITDA”) of US $1.7
million. For the twelve months ended June 30, 2022, Wedge generated
revenue of US $5.5 million and EBITDA of US $3.1 million.
ABOUT PLAYMAKER CAPITAL INC. Playmaker Capital Inc.
(TSX-V: PMKR; OTC: PMKRF) is a digital sports media company that
acquires and integrates premier fan-centric media brands, curated
to deliver highly engaged audiences of sports fans to tier one
advertisers, online sports betting operators, and sports
federations and leagues. Leveraging its in-house technology stack,
Bench, and with a 360-degree view of sports fans, Playmaker
delivers authentic digital content experiences for sports fans and
best-in-class results for its partners across the Americas.
For more information, visit: http://www.playmaker.fans or
contact Playmaker Chief Executive Officer Jordan Gnat via email
jgnat@playmaker.fans. |T: (416) 815-4993.
To sign up for Playmaker’s Investor Alerts, visit:
playmaker.fans/investors.
1 Action Network, US sports betting & iGaming markets
projected to hit $24.3 billion by 2026, 19 July 2022 2 Front Office
Sports, Record 46.6M Bettors Plan To Wager on NFL This Season, 7
September 2022
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version on businesswire.com: https://www.businesswire.com/news/home/20221018005447/en/
MEDIA CONTACT Elias Blahacek – E: elias@playmaker.fans |
T: (416) 254-4345
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