Share Price and Future AcquisitionsI’m surprised that the SP has pulled back this far below .90, but welcome this as a buying opportunity. I added to my position yesterday and will back the truck up if this gets back to around the previous 0.625 PP share price (it previously dipped below that post original PP to mid-high 50s; who knows if that’s in the cards).
Related to this most recent round of financing, the July 8
th final short form prospectus now has 8millon earmarked for “Future Acquisitions”. Here’s the before (June 23
rd) and after (July 8
th) high level breakdown:
June 23
rd Amended Prospectus
| Principal Purposes | |
| Askott Games | $2,000,000 |
| Chameleon — Software Supplier Compliance | $2,000,000 |
| Launch and Market new B2C Brand | $1,500,000 |
| Partnerships and Brand Awareness | $1,000,000 |
| Working Capital & Other General and Administrative Costs | $13,466,898 |
| Total | $19,966,898 |
July 8
th Final Prospectus
| Principal Purposes | |
| Future Acquisitions | $8,000,000 |
| Askott Games | $2,000,000 |
| Chameleon — Software Supplier Compliance | $2,000,000 |
| Launch and Market new B2C Brand | $1,500,000 |
| Partnerships and Brand Awareness | $1,000,000 |
| Working Capital & Other General and Administrative Costs | $5,466,898 |
| Total | $19,966,898 |
Suggest ppl read the July 8
th document on SEDAR to get a further break down / line itemization for each of these categories that are organized by the headings of: significant event, time period and cost. With respect to future acquisitions, the report states,
“FansUnite intends to pursue value-enhancing acquisitions and/or potential strategic partnerships in the online gaming and gambling space. The Company anticipates acquiring asset(s) that will provide synergies with its existing business, and add experienced employees to its team. The significant events that must occur to accomplish this include identifying the proper target, negotiating terms, and ultimately agreeing on a purchase contract. The specific timeline for this is unknown, but FansUnite is actively looking for the right fit.”
Nothing new from what we’ve heard verbally in the past; however, the fact they’ve done this PP and set aside this specific amount (8mil) can be a sign that they have a specific asset(s) in mind. I suspect they do. Regardless, having this cash on hand will enable them to pull the trigger quickly on future deals and not be delayed by the need to go out and get financing at a later date.