(TheNewswire)
Montréal - TheNewswire- August 11, 2021 - ZeU Technologies,Inc. (C NSX :ZEU. CN ) (OTC:ZEUCF) announced today,further to its news release dated May 6, 2021, that it has executedthe definitive agreement to acquire all of the issued and outstandingshares of Money Line Sports Inc and its wholly-owned subsidiary, MoneyLine Sports Acquisition Corp., through ZeU Gaming Inc., a wholly-ownedsubsidiary of ZeU Technologies, Inc, for a total consideration ofCDN$1,501,500.
In 2019, forty-one percent of onlinegambling revenue in Europe came from sports betting. The region’sonline gambling market was expected to be valued at $94 billion by2024.
The European Business Review
Founded in 2019 and launching in 2021, Money LineSports is uniquely positioned in the European and internationalmarkets as an enhanced solutions provider operating an infrastructurebusiness for the management of sports and wagering engagement for OTTmedia streaming & sports wagers. Money Line’s sports mediaplatforms provide an enhanced experience for its users throughoriginal sports live stream content, premium insights, live odds, andproprietary betting tools and data. Money Line’s diverse revenuemodel includes a subscription-based pay for view model and rapidlygrowing affiliate marketing business focused on customer acquisitionfor betting operators in Europe and additional jurisdictions as wellas sports and casino wagering.
Money Line will integrate with ZeU’s currentorganization where relevant to generate efficiencies and additionalrevenue streams through subscription-based sporting events, wagering,and digital transaction fees. Money Line Sports will continue tooperate as self-contained business unit with its current managementteam and employees, under the direction of ZeU Gaming Inc.
Money Line's principal, B. Michael Friedman, willcontinue to serve as the division's President going forward,integrating his team and infrastructure into ZeU 's existingoperations. Mr. Friedman will also serve as an advisor to ZeU's board,bringing his twenty years of mergers and acquisitions experience andextensive banking network to the Company. Through its management andteam, Money Line provides leading streaming and licensing partners toengage its customers to build new and improved B2C & B2B processesthat align with customers' brands, boost retention, enhance faninteraction, improve ROI, and increase sales and profit margins.
“(…) I am extremely thrilled tojoin Mr. Dumas and the team from ZeU Technologies through this mergerand believe our combined vision to grow ZeU into one of the mostrecognized names in the gaming and blockchain sector will happenquickly. We both agree that the best way to enhance shareholder valueand future stock appreciation is to maintain ZeU's tightly controlledshare structure and build substantial cash resources as we moveforward with launching our OTT streaming sports platform and licensedwagering technology. Collectively, we are hyper-focused on revenuegrowth and increasing margins. This is just the beginning, and we areexcited to scale both businesses and continue achieving corporatemilestones. I'd like to thank my tremendous team and am lookingforward to the next phase of rapid growth with ZeU,” stated B. Michael Friedman, Founder ofMoney Line Sports Inc.
The Money Line transaction is expected to deliver oncore strategic priorities of (1) increasing revenue streams to ZeUthrough subscription-based sports streaming and live wageringtechnology, (2) expanding the ZeU gaming division through client andmedia acquisitions, (3) strengthening technology infrastructure, (4)expanding operational geography, and (5) adding experienced executivesto the ZeU Management team.
“ Theacquisition of Money Line Sports adds immediate strategic andfinancial value to our existing portfolio of assets making this both ameaningful and synergistic relationship which will allow us toaccelerate the creation and monetization of next-generation gamingtechnology,” stated FrankDumas , CEO of ZeU Technologies, Inc.
The Transaction
Under the terms of the Agreement, all of the assets ofMoneyLine will be rolled into a newly incorporated Canadian company,ZeU Gaming Inc. (the " Corporation "). Upon completion of theAgreement, ZeU will acquire 100% of the issued and outstanding sharesof Money Line and its US subsidiary (the " Transaction ").
The aggregate purchase price payable by the Buyer tothe Sellers for the Purchased Shares shall be an amount equal toCDN$1,501,500, which shall be paid and satisfied as follows:
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- CDN$250,000 principal amount of convertibledebentures of ZeU Gaming Inc.
- 1,500,000 non-transferablecommon share purchase warrants of ZeU Technologies Inc. with eachWarrant entitling the holder thereof to acquire one common share ofZeU at a price of CDN$0.91 for a period of 24 months following theClosing Date.
- In addition, subject to thecompletion of the following milestones, ZeU Gaming Inc. will pay up toCDN$1,250,000 in milestones bonuses, which shall be paid and satisfiedin principal amount of ZeUGaming Inc. Debentures as follows:
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- CDN$250,000 payable upon MoneyLine’s launch of www.Moneylinesports.tv streaming site and livegames ;
- CDN$2 50,000 payable upon Money Line’s onboarding the first 5000active recurring players and subscribers of Money Line streamingsports service;
- CDN$250,000 payable upon MoneyLine reaching CDN$250,000 quarterly revenue;
- CDN$250,000 payable upon MoneyLine’s onboarding an additional 20,000 active recurring players andsubscribers (25,000 total) of Money Line streaming sports service;
- CDN$250,000 payable upon MoneyLine’s onboarding an additional 25,000 active recurring players andsubscribers (50,000 total) of Money Line streaming sportsservice.
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The Transaction completion is conditional on severalconditions, including completion of a definitive agreement, final duediligence, Money Line minority shareholders’ approval, and CSEapproval. It is expected to be completed beforethe end of August 2021.
_____________________________________________________________________________________
ON BEHALF OF THE BOARD OF DIRECTORS
“FrankDumas”
Frank Dumas
President & CEO
About ZeU
ZeU is a forward-thinking Canadian technology company that hasdeveloped a state-of-the-art blockchain protocol, providing thefoundation for the next generation of encrypted and distributednetworks. Thanks to its high level of sophistication, ZeU’stechnology maximizes transparency, security and scalability as well asbig data management. ZeU’s strategy is to monetize blockchaintransactions in diverse sectors such as payment, gaming, data, andhealthcare.
About MoneyLine
Founded in 2019 and launching in 2021, Money LineSports is uniquely positioned within the online gaming sector throughits unique licensed platform to provide premium streaming sportscontent and wagering for sports bettors within legal jurisdictions.Money Line’s sports media platform provides an enhanced experiencefor its users through original sports live stream content, premiuminsights, live odds and proprietary betting tools and data. MoneyLine’s diverse revenue model includes a subscription-based pay forview model and rapidly growing affiliate marketing business focused oncustomer acquisition for betting operators in Europe and additionaljurisdictions as well as sports and casino wagering.
The CSE has in no way passed uponthe merits of the Transaction and has neither approved nor disapprovedthe contents of this press release.
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