Toronto, Ontario--(Newsfile Corp. - April 20, 2021) - Blocplay Entertainment Inc. (CSE: PLAY)(the "Company") is pleased to announce that it has entered into binding letter of intent (the "LOI") dated April 12, 2021, with Ludare Games Group Inc. ("Ludare Games") to acquire a forty percent (40%) interest of a mobile game project licensed with a major blockbuster movie franchise for release later this year (the "Acquisition").
As consideration for the Acquisition, the Company will issue 1,670,000 common shares in the capital of the Company (each, a "Common Share") to Ludare Games and make an investment in the amount of $300,000 into the project. The Common Shares shall be subject to contractual resale restrictions providing that the Common Shares may not be sold, transferred, optioned, encumbered, pledged or hypothecated in any way, except as follows: (i) as to 25% on the date which is four months from the date of issuance; (ii) 25% on the date which is eight months from the date of issuance; (iii) as to 25% on the date which is twelve months from the date of issuance; and (iv) as to 25% on the date which is sixteen months from the date of issuance.
Closing of the Acquisition is set to close on or about May 31, 2021, subject to completed due diligence and closing conditions. In making this investment, the Company will acquire its first major video game asset and will begin to generate revenue in the back half of 2021.
Jon Gill, Chairman of Blocplay - "As we position to scale our business in the digital media and entertainment industry, our partnership in this project with Ludare is an important foundation to establishing our presence and footprint in this dynamic industry."
Amar Kurani, Director of Ludare Games Group. "In meeting with the Blocplay management team and better understanding their current strategy, we realized that their model is a great fit for fast-growing game development companies. We have a natural ally in Blocplay, and we are very excited about working on our upcoming project launch together."
Ludare is a gaming group that focuses on developing and publishing top-tier, licensed-IP mobile games. Previously, Ludare licensed the "Men in Black" IP from Sony Films to launch Men in Black: Global Invasion, a location-based AR game for Apple and Android devices. Ludare is currently working with multiple globally recognized IP holders, including a major Hollywood production studio, to launch high-potential licensed IP mobile games.
The completion of the Acquisition remains subject to the approval of all regulatory and other approvals, including the approval of the CSE.
For further information, please contact:
Jon Gill, Chairman
Tel: 416-361-1913
Email: investors.blocplay@gmail.com
Forward Looking Information
This news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
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