Fantasy Aces Daily Fantasy Sports Site Enters Into Reverse Merger With DraftTeam
It was revealed on Monday that Vancouver-based DraftTeam and California-based FantasyAces.com have entered into a “reverse merger” deal whereby the later company will retain its executives and employees to run the newly created Daily Fantasy venture. It will trade on the Vancouver Stock Exchange.
On a combined basis and for the 5-month period ended May 31, 2015, Fantasy Aces Daily Fantasy Sports Corp. has:
|
Gross Revenue: |
US $349,154 |
|
Contest Payouts: |
US $3,395,430 |
As at May 31, 2015 Fantasy Aces Daily Fantasy Sports Corp. has:
|
Members: |
24,517 |
|
Active Members: |
9,340 |
The above numbers will make Fantasy Aces one of the largest companies in the Daily Fantasy Sports industry in 2015.
The Boards of both companies expect the following advantages as a result of this Business Combination:
- Creation of a well-capitalized Corporation which is solely focused on Daily Fantasy Sports
- An increase in the size and diversity of tournament types and breadth of appeal
- A strong industry player that has shown an industry leading conversion rate of new members to depositing players of over 50%
- Expanding user acquisition model while prominently diversifying marketing and promotional activity
- Increasing the number and frequency of its industry renowned Live Championship Events at unique and memorable sports-themed venues across the country
- Establish affiliations with professional sports teams, leagues and athletes
- Business expansion opportunities using its technology into International markets
Following the closing of the Transaction, management of Fantasy Aces Daily Fantasy Sports Corp. will be comprised of Tom Frisina, Chief Executive Officer; Bryan Frisina, Operations Director; Trent Frisina, Creative Director ; and Mike Olsen, Chief Financial Officer. The Board of Directors is contemplated to be comprised of Tom Frisina (Chairman), David Antony, Dave Carbone, Richard Haddrill, and John Rak.
The Business Combination Agreement contemplates that DraftTeam will hold a meeting of its shareholders on or prior to August 1, 2015 to permit shareholders to vote on the Transaction. The board of directors of DraftTeam unanimously supports the Transaction, has determined that the Transaction is in the best interest of DraftTeam and recommends that the shareholders of DraftTeam vote in favour of the Transaction.
The Transaction will be undertaken by way of a corporate reorganization that will include the formation of a Canadian limited partnership of DraftTeam ("Newco LP") and the issuance of units of Newco LP (the "Convertible Units") to the members of the FantasyAces in exchange for the contribution to Newco LP of all their respective interests in Fantasy Aces.
Selected Fantasy Aces Financial Information
The following table contains selected annual financial and operating information with respect to Fantasy Aces and has been derived from Fantasy Aces' management prepared unaudited financial statements for the period ended December 31, 2014:
|
Unaudited Dec. 31, 2014 (US$) |
|||
|
Sales |
$ |
220,440 |
|
|
Gross profit |
$ |
54,175 |
|
|
Net income (loss) |
$ |
(567,061 |
) |
|
Total assets |
$ |
189,008 |
|
|
Long term financial liabilities |
$ |
0 |
|
|
Total Shareholders' Equity |
$ |
(455,177 |
) |
- Aaron Goldstein, Gambling911.com
