RE:RE:RE:RE:RE:RE:New Snipp Gambit-Investor Deck on their site...no worries Donlin2...posting here the relevant part to make it easy to see how nicely this has been structured. Also seems like about 8% dilution only since the 10 day average works out to about $0.29...i for one love the deal - another incentive, a high high growth industry and like i said before they keep saying Asset light which implies costs of this thing are minimal. Also worth looking at the profile of the founder of Gambit. Seasoned banker with skills I imagine Snipp really lacks today and he speaks oh so well!
Terms of the Transaction
Pursuant to the Acquisition Agreement, Snipp will purchase all of the issued and outstanding common shares of Gambit from the Vendors in consideration for US$5 million of which US$0.3 million will be paid in cash and US$4.7 million will be paid in common shares of Snipp to securityholders of Gambit (the “Snipp Consideration Shares”). The Snipp Consideration Shares shall be issued at a deemed price equal to the 10-day trailing volume weighted average price of the common shares of Snipp on the TSXV prior to the date hereof.
All Snipp Consideration Shares issued in connection with the Transaction will be subject to a statutory hold period under applicable Canadian securities laws which will expire four months and one day after issuance and to contractual lock-up agreements entered into with each of the Vendors (the “Lock-Up Agreements”). Under the terms of the Lock-Up Agreements, the Snipp Consideration Shares are restricted from transfer and will be released over a twelve (12) month period and in accordance with the following schedule: (i) 33.33% of the Snipp Consideration Shares will be released on the date that is four months and one day from the date of the Closing; (ii) and the balance 66.67% of the Snipp Consideration Shares will be released in equal installments over the subsequent eight (8) months. There are no finder’s fees or long-term debt associated with the completion of the Transaction.