Tiidal Gaming Group Corp (CSE:TIDL) announced that its board of directors has completed a review of the company's strategic direction and operations in an effort to maximize shareholder value, determining that it is in the best of interests of Tiidal to focus its efforts and resources exclusively on its Sportsflare technology division and embark on the process of divesting its competitive esports team assets.
The gaming media and technology platform said upon completion of the divestiture, the sole business of the company will be Sportsflare and anticipates that shareholders will be asked to consider and approve a change of the company's name to Sportsflare Ltd at its next annual general and special meeting of shareholders expected to be held in the fourth quarter of 2022.
“We have decided to put our undivided attention behind Sportsflare given the opportunity at hand and the amazing progress we have made with our esports betting products during the year,” Tiidal Gaming Group CEO Tom Hearne said in a statement.
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“As we continue to scale, our focus will be to not only grow our technology portfolio but also, expand the distribution of our solutions to a wider audience globally in order to strengthen our footprint in the fast-growing esports industry,” Hearne added.
Tiidal noted that Sportsflare has developed several state-of-the-art esports betting solutions, which include the industry's first-of-its-kind Flash Markets, Player Proposition Markets for Dota 2 and Betbuilder, and has signed notable agreements with leading iGaming & esportsbook providers such as EveryMatrix Group and Vivid Seats Inc.
It added that Sportsflare intends to secure more partnerships with global brands within the esports space in order to drive sales growth and enhance gross margins.
As well, Tiidal reported that it intends to complete a non-brokered private placement of company units, at an issue price of $0.10 per unit, for gross proceeds of up to C$500,000.
The company said it will use the proceeds of the private placement for Sportsflare operations in sales, trading and development and general corporate and working capital purposes.
Each unit of the offering will consist of one company common share plus one common share purchase warrant, with each warrant entitling the holder to acquire one Tiidal Gaming common share at an exercise price of $0.15 per warrant share for a period of three years from the date of issuance.
In connection with the offering, eligible parties may receive a cash finder's fee payment equal to up to 7% of the gross proceeds of the units that are sold to subscribers introduced by such parties, and warrants to purchase that number of common shares equal to up to 7% of the units that are sold to subscribers introduced by such parties, with each finder's warrant being exercisable for one finder's warrant share at a price of $0.10 per finder's warrant share for a period of three years from the closing of the offering.
The offering and name change are subject to final approval of the Canadian Securities Exchange (CSE) and all applicable regulatory approvals, and the name change is subject to shareholder approval.
The first tranche of the offering is expected to close on or before August 31, 2022, and the securities issued or issuable in connection with the closing of the offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation, according to the company.
Tiidal Gaming is a leading media and technology platform enabling next-generation engagement in esports and gaming. It is positioned at the intersection of gaming, media, and betting and enables its partners to create positive, engaging, and immersive fan and consumer experiences through the company's industry-leading media and technology offerings.
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