Gamelancer Media, doing business as Vertiqal Studios (TSX:VRTS, OTCQB:GAMGF), announced that it has acquired 68 digital media channels from Atlanta-based Offbeat Media Group, growing its network to 134 channels with 52 million followers.
The company said the acquisition is expected to generate US$500,000 in earnings before interest, taxes, depreciation and amortization (EBITDA) in fiscal 2023.
“The acquisition of the assets grows our channel offering to one of the largest over-the-top (OTT) networks in Canada and continues to diversify our assets to accompany our TikTok and Instagram channels,” Vertiqal Studios (TSX:VRTS, OTCQB:GAMGF) CEO Jon Dwyer said in a statement.
In consideration for the assets, Vertiqal will pay US$2 million, with US$1 million payable on closing of the deal and US$1 million to be paid in equal monthly installments over the following 18 months under a secured promissory note.
Under the terms of the note, Vertiqal has agreed to pay an annual interest rate of 5% on the outstanding principal amount.
Additionally, the company said it has raised C$1.7 million through a non-brokered private placement led by Carriage House Capital, the proceeds of which will be used to make the initial payment to Offbeat. It issued 42,500,500 shares at C$0.04 per share.
Vertiqal Studios (TSX:VRTS, OTCQB:GAMGF) is an owned-and-operated digital-channel network and video production studio. Specializing in the creation of viral videos, Vertiqal produces and distributes 100-plus videos daily across its owned-and-operated channels, utilizing TV economics to monetize TikTok and Instagram and revenue-share with OTT platforms.