- Gamelancer Media (CSE:GMNG) is ready to take its digital media strategy solutions to the next level
- The company made the final purchase price payment of $4.8 million to former Gamelancer shareholders
- It also closed the final tranche of a private placement for a total of $10 million
- Shares of Gamelancer Media (CSE:GMNG) are unchanged at C$0.10
Gamelancer Media (CSE:GMNG) is gearing up to take its digital media strategy solutions to the next level.
On July 6, the company announced it had made the final purchase price payment of an aggregate US$4.8 million to former Gamelancer shareholders.
The purchase was for the acquisition of Gamelancer Gaming Network, which will provide a well-rounded business model under the Gamelancer Media brand.
The company said in a statement it had agreed with former Gamelancer shareholders to settle an aggregate of $1 million of the final payment through issuing 13.3 million common shares in its capital at a price of $0.10 per share.
With headquarters in Toronto, Gamelancer Media is a digital media company that produces short-form video content for brands. It broadcasts on its own TikTok, Snapchat and Instagram feeds.
“The finalization of this payment marks a significant milestone and highlights our unified strength, propelling us with renewed confidence and determination in the ever-evolving digital media industry,” Darren Lopes, director and chief product officer at Gamelancer, said in a statement. “Choosing additional equity, rather than receiving our final acquisition payment in cash, emphasizes our conviction in Gamelancer’s long-term potential.”
Non-brokered private placement closed
Gamelancer’s ecosystem of 54 channels now reaches more than 40 million people, with campaigns in regions such as the United States, Canada, Australia and the United Kingdom.
“We were really compelled to accomplish this financing as it was a major condition of us uplisting to the TSX.” Jon Dwyer, CEO of Gamelancer, said.
The three conditions as outlined by Dwyer are, a minimum of $3 million in revenue (in the tech category), a $50 million market cap, $10 million derived from a brokered private placement that has distribution to a minimum of 50 people, which is a relatively new condition.
In addition, Dwyer points out that, “84% of this book was the president’s list which is in part, the continued support of the Desmarais family office and of our newly appointed president, Max Desmarais.” Dwyer also highlights that many of the investors are returning and continuing to support the company.
Gamelancer owns one of the largest communities on TikTok and some of its success stems from its organic video inventory and ownership of its marquee handles. Dwyer points out they have more than 40 million followers and the company paid $C26.2 million. Recently, its competitor, Playmaker, which has 19 million followers, sold for $70 million. This reinforces Gamelancer’s model of owning its assets and having the value of a committed following from a digital channel perspective.
The company has added Sharethrough President & CEO JF Cote to its Board of Directors.
“When you can have a management team that is smart enough to know what they don’t know, to start to bring people on at the board level (you can) really make strategic decisions and fewer mistakes.” Dwyer said in our interview.
The offering included gross proceeds of $2.8 million pursuant to the listed issuer financing exemption (LIFE exemption) and gross proceeds of $7.15 million pursuant to available private placement exemptions.
Under the terms of the private placement, each purchase warrant of the company entitles the holder to purchase one share of the company at $0.15 each before the date, which is 36 months after the closing date of the offerings.
Additionally, the company paid $186,069.50 in aggregate and issued 1.14 million broker warrants to the agents.
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Coreena Robertson contributed to this report.