he acquisition will provide Fantasy Aces direct access to over 35,000 participants in the FFI database. Most importantly, there are many unique FFI participants who have deposited and played over the last year, and are not duplicated on the Fantasy Aces platform.
For those unique user participants, the company will pay Gaming Nation C$125.00 per participant. Gaming Nation will receive a cash payment of C$25,000, with the remainder of the purchase price being paid in common shares of the company at a price per share based on the 20 day moving average of the shares on the transaction date. The exact purchase price will be determined once the company and Gaming Nation agree on the number of unique user participants being acquired pursuant to the acquisition.
The completion of the acquisition is subject to the approval of the TSX Venture Exchange and all other regulatory bodies having jurisdiction in connection with the operation.
The parties anticipate entering into a definitive agreement setting out in more detail the terms of the Acquisition.
Upon completion of the acquisition and the migration of the FFI partipants to the Fantasy Aces platform, Fantasy Aces will become one of the largest daily fantasy sports ("DFS") companies in the industry, the company said in a statement
Fantasy Aces executives and employees will continue to serve as the operators, including all day-to-day site operations. Fantasy Aces has been a leader in the fast growing DFS sector and with this consolidation expects to have an even greater presence in the DFS industry. A portion of the 35,000 user participants will have an immediate impact on the corporation's gross revenue and expanding user base. The remaining inactive users will be targets of marketing and promotional campaigns aimed at converting them to depositors and daily active users.
On a combined basis and for the six month period ended June 30, 2016, Fantasy Aces and FFI have:
In addition to the extensive FFI user base, Fantasy Aces will become the DFS site recommended and endorsed by the other key daily fantasy properties controlled by Gaming Nation including Fantasy Guru, DFS Guru Elite, Pick Nation and 5050 Central. The totality and impact of these databases for this acquistion will be measured immediately, and, will grow over time as the company mines the multitude of these Gaming Nation databases which will translate into a greatly accretive transaction.
"This deal should prove to be extremely accretive to shareholders. Not only does it provide us with all the positive points listed above, but the timing of the deal could not be better as we move in to the biggest quarter of the year, with NFL starting, followed by NBA and NHL, while MLB and PGA continue. With certain states finally announcing that DFS players are able to freely play, we expect the whole industry to expand dramatically over the next few years. As a result of this transaction we could not be more excited to grab a bigger piece of what is becoming one of the biggest new industries in North America," Tom Frisina, CEO of Fantasy Aces stated.
"This agreement benefits both parties and our combined players and we are extremely pleased to have closed this deal. Tom and his team have demonstrated that they not only have the experience but the wherewithal to drive value from each player on their site. With access to our full database, I am confident that not only will their revenues continue to grow exponentially, but they will be able to realize the site's true potential and ultimately generate a significant return for us as shareholders," Scott Secord, President and CEO of Gaming Nation commented.