? Acquisition
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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.
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LEAF is going to acquire 100% of East Side Games for CAD $150m including
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CAD $50m in cash (~USD $38m)
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CAD $100m in shares that represent 50% of the issued and outstanding LEAF shares (~USD $75m)
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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
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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:
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LEAF will also raise an equity financing with over CAD $50m gross proceeds;
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Jason Bailey, CEO of East Side Games, will be appointed Chief Revenue Officer of LEAF;
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Darcy Taylor and Market Leung will continue to operate as CEO and CFO of LEAF, accordingly;
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LEAF may change its name to reflect the consequences of the transaction
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? Products
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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
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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
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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 $
