Blocplay cancels $3.5M placement, evaluates assets
2018-06-25 20:13 ET - News Release
Mr. Cameron Paddock reports
BLOCPLAY ENTERTAINMENT PROVIDES UPDATE ON CORPORATE DEVELOPMENTS AND DIVERSIFIED MANAGEMENT REVIEW OF ALL BUSINESS UNITS AND ASSETS FOR ITS UPCOMING SHAREHOLDER MEETING
Blocplay Entertainment Inc. has provided consolidated information on recent corporate developments, its current business focus and related fundraising efforts.
Board and management
In May and early June of 2018, the board and management of Blocplay Entertainment underwent changes reflecting the broadening of the company's operations from video game developer and digital media publisher into the business of its recently acquired subsidiary TokenPlay, a developer of blockchain-based technologies for e-sports and video games (see news releases dated May 18, 2018, and June 12, 2018). The current board comprises Cameron Paddock, Richard Grieve, Simon Kim and Usama Chaudhry. Mr. Paddock is the chief executive officer, Mr. Chaudhry the chief financial officer and Vince McMullin the chief technology officer of BlocPlay. The new directors of Blocplay recognize that the company has not held a recent shareholder meeting, and the management is committed to calling an annual general meeting of shareholders and has announced its annual general meeting to be dated Sept. 28, 2018.
The board has decided to cancel the $3.5-million financing. On Nov. 29, 2017, the company, under its subsidiary Stompy Bot, closed a $2-million financing, as it was in dire need for funds with considerable outstanding liabilities and debt. This acquisition was a remarkable opportunity for the company, as it was concluded without any cash contribution, only with shares. The company received a unique chance to acquire a dynamic company in the blockchain gaming space and to achieve a much broader revenue potential, servicing the entire gaming community, developing TokenPlay Gaming Platform's business model. This would attain a much higher revenue potential compared with last year's business model featuring a single game (rerelease of Heavy Gear Assault under Stompy Bot Productions). Both opportunities require considerable proceeds to enhance and develop their current state, and will continue to need additional financing to fully develop both business models.
The initial assessment of the company and its assets is under way with additional evaluation from industry professionals, and will conclude shortly with a board recommendation and finalized commitment to the business model in the best interest of the shareholders. The company is currently in a negative-cash-flow position, and this re-evaluation of all of its current assets seeks to find the best value proposition for the shareholders. This may result in slowing down the development of less viable assets while maintaining company cash reserves, progressing at a moderate pace until financing is available.
Blocplay's corporate focus