? Acquisition
Vancouver-based mobile game developer LEAF Mobile Inc. (TSXV:LEAF) has announced a LoI (letter of intent) with Vancouver-based mobile game developer and publisher East Side Games Inc.
LEAF is going to acquire 100% of East Side Games for CAD $150m including
CAD $50m in cash (~USD $38m)
CAD $100m in shares that represent 50% of the issued and outstanding LEAF shares (~USD $75m)
Considering that East Side Games possesses 20% of the issued and outstanding LEAF shares, the acquisition will result in a reverse takeover, meaning that East Side Games will become a publicly-listed company without a traditional IPO process
The completion of the acquisition is subject to TSX senior exchange listing approval (currently LEAF trades on the TSX Venture Exchange) and other conditions precedent. In conjunction with the transaction:
LEAF will also raise an equity financing with over CAD $50m gross proceeds;
Jason Bailey, CEO of East Side Games, will be appointed Chief Revenue Officer of LEAF;
Darcy Taylor and Market Leung will continue to operate as CEO and CFO of LEAF, accordingly;
LEAF may change its name to reflect the consequences of the transaction
? Products
East Side Games is a mobile idle games developer behind such games as Archer: Danger Phone, Trailer Park Boys: Greasy Money, The Goldbergs: Back to the 80s and others
Together, all the games of the company have been downloaded about 8 million times. In September 2020, East Side Games saw about 263k downloads on IOS and Android combined
Both Leaf Mobile and East Side Gam specialize in mobile games that share some common cannabis-related themes
SOURCE: NEWSWIRE, INVESTOR RELATIONS LEAF
NOTE: 1 USD $ = 1.326 CAD $
