Victory Square Technologies Inc (CSE:VST) (OTC:VSQTF) (FRA:6F6) announced Thursday that its board approved a strategic dividend reward initiative to unlock the intrinsic value of its portfolio company GameOn Entertainment Technologies Inc.
Under the scheme, Victory Square said it will distribute a portion of the common shares of GameOn currently held by the company to its Victory Square shareholders.
Victory Square added that it will evaluate, consider and assess the mechanism by which to effect such distribution on a tax-efficient and financially prudent basis -- with the aim of ultimately capitalizing GameOn as a stand-alone publicly listed entity following its listing.
READ: Victory Square subsidiary GameOn brings on former Australian soccer star Tim Cahill, 2 sports media executives as advisors
"The objective of the share dividend initiative is to reward the company’s shareholders with equity in GameOn as it progresses towards listing as a standalone publicly-traded company,” said Victory Square CEO Shafin Diamond Tejani in a statement. “This will also enable the capital markets to appropriately value one of our portfolio investments."
Tejani added: “This is the first of what we hope to be many share dividend initiatives that we wish to provide VST shareholders as we grow and realize appreciating assets.”
Victory Square said that GameOn, founded in 2018, empowers sports and entertainment content providers with the world's simplest and most accessible gamification platform. Whether it is supporting TV networks, OTT platforms, sportsbooks or leagues, GameOn helps partners turn their content -- everything from sports to reality TV -- into interactive and social experiences via mobile and TV apps.
In anticipation of its stand-alone public listing, GameOn recently announced an upsized private placement to C$3 million due to strong investor demand, as well as strategically growing its board and Advisory Council bringing on noted and respected colleagues in the sports, entertainment, gaming and wagering spaces.
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