HENDERSON, Nev., July 31, 2020 /PRNewswire/ -- BRK, Inc. (the "Company") (OTC: BRKK) (OTC: BRKKD) is pleased to inform its shareholders that as a result of the acceleration of the commercialization schedule of the Gen2 platform, management has made important amendments to the relationship between BRK and the previously disclosed separate private company Gen2.
Shareholders of BRK will, as before, hold a 10% equity stake in Gen2. However, the relationship between these two companies shall be governed by a commercialisation / marketing Agreement as opposed to a purely Intellectual Property (IP) / royalty contract.
Under terms of the new Agreement:
- BRK will retain all P&L and cash flows attributable to the commercialization of the Gen2 platform
- BRK shall retain full control and ownership of IP
- Gen2 shall be paid a service / marketing fee covering the costs necessary to effectively position the Gen2 platform in the marketplace and to drive sales
- At the end of the 3rd calendar year following the signing of the commercialization / marketing Agreement, Gen2 shall have the option to buy all control and rights, including IP, from BRK for upfront consideration in the amount of USD $50m, and a 10% of net revenue per annum payment to BRK, for seven (7) years
Mr. Daniel Serruya, CEO, stated: "Our priority is to continue to drive the quickest and most efficient path to commercialization of our exciting Gen2 platform and portfolio of products, which we shall be shortly unveiling to the general public and our loyal shareholder base. We have received encouraging feedback in our discussions with various investors and potential customers, and it is our belief that we will be in a position to announce our first commercial contract in the current quarter. We are actively engaging across a number of verticals and aim to provision our turnkey Gen2 platform across multiple verticals by year-end 2020."
Mr. Michael Kovacocy, Head of Corporate Development and Investor Relations, added: "Our new agreement with Gen2 is a step-change improvement of terms for BRK shareholders. IP and the fruits of value creation via the commercialization of the Gen2 platform and portfolio of products shall remain in the hands of our loyal shareholders. Should Gen2 exercise its option to purchase the rights to and IP of the Gen2 business, we believe that the stated purchase price represents a material appreciation of value vis-a-vis to where our enterprise and market capitalization currently stand. Furthermore, BRK shareholders will continue to partake in any upside post transaction via the generous seven year per annum flow of payments. As stated in previous communications, management is focused on driving material enhancement in shareholder value via the cost-efficient development and commercialization of our IP."
BRK Inc. (OTC PINK: BRKK), established in 2008, BRK is the next generation in live-action broadcasting technology. We are a full-service provider geared to professional leagues and athletes, whether it be traditional sports, extreme sports or esports, and that will allow fans to watch them in action from perspectives that do not exist today. Our niche is that we are a second screen content provider that does not pose a threat to first screen media but rather we provide the opportunity to pioneer complimentary content and campaigns.
The foregoing contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are intended to be covered by the safe harbor provisions of the federal securities laws. Forward-looking statements often contain words such as "will," "anticipate," "believe," "plan," "estimate," "expect," "intend," "is targeting," "may," "should," "poised," and other similar words or expressions. Forward-looking statements are made based upon management's current expectations and beliefs and are not guarantees of future performance. Our actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others, those described in any of our other filings with the SEC. In addition, such statements could be affected by risks and uncertainties related to: (i) commercialization of our newly-acquired helmet camera, (ii) continuing development and protection of our intellectual property, (iii) unexpected industry competition, (iv) the need to raise capital to meet business requirements, and (v) our ability to sell our products in order to generate revenues. Forward-Looking Statements are pertinent only as of the date on which they are made, and the company undertakes no obligation to update or revise any Forward-Looking Statements, whether as a result of new information, future developments or otherwise. Any future public statements or disclosures modifying any of the forward-looking statements contained in or accompanying this news release, will be deemed to supersede such statements in this news release. Information on BRK Inc.'s website, http://www.brkgen2.com does not constitute a part of this release.
SOURCE BRK, Inc.