VANCOUVER, BC, Nov. 26, 2020 /PRNewswire/ - ESE Entertainment Inc. ("we", "ESE", or the "Company") (TSXV: ESE) (OTCPINK: ENTEF) is pleased to announce that it has entered into an asset purchase agreement (the "Agreement") with the owner of K1CK Esports Club ("K1CK"), Pedro Fernandes (the "Vendor"), whereby ESE has agreed to acquire from the Vendor all of the assets relating to, and required for, the continued operation of K1CK.
K1CK is a pioneer of esports in Europe, having been founded in 1998. K1CK manages esports teams that compete across multiple games and platforms and, since its inception, K1CK has seen continued success in esports competitions across Europe and the rest of the world. K1CK has members from many nations within its ranks who bring a level of professionalism to esports competitions. The acquisition of K1CK will allow ESE to further its growing position in the esports industry.
The K1CK team has already been integrated into ESE through the licensing and management of its professional team. This acquisition of intellectual property pursuant to the Agreement will be the final step, allowing ESE to rapidly scale and increase the value of the K1CK brand on a global level.
Pedro Fernandes, founder of K1CK, commented "This is another big step in K1CK's long lasting journey towards excellence. Having access to technologies and creating infrastructures with ESE will support the brand's rise to leadership positions in the global esports market. This is exactly the right opportunity and fit we have been looking for, and undoubtedly a great moment for K1CK."
Konrad Wasiela, CEO of ESE, commented "K1CK Esports is a brand that is recognized and respected globally. Finalizing the acquisition of K1CK's intellectual property will allow us to focus on continuing to build the next big esports brand. We hope that with the additional infrastructure ESE can provide, K1CK will become a tier one brand that will be in the same conversation as the Cloud9, FaZe Clan and G2 Esports of the world. Our core focus is to continue building our fan base and engaging with the esports community. ESE will also invest in technologies that will allow K1CK to scale its monetizable assets globally."
Pursuant to the Agreement, ESE will pay to the Vendor aggregate consideration of C$207,500, consisting of the following: (i) C$120,000 in cash, with C$60,000 payable on closing and C$60,000 payable on demand by the Vendor after January 20, 2021; and (ii) C$87,500 in common shares of the Company at a deemed price of C$0.25 per share, for a total of 350,000 shares. The Vendor has also agreed to work with ESE to operate K1CK following the closing of the Agreement.
Closing of the Agreement is subject to customary closing conditions, including TSX Venture Exchange approval.
ESE has also hired 1273866 B.C. LTD. (DBA "Hyperdrive Marketing") to provide digital marketing services for an initial three-month term. Hyperdrive Marketing will be paid a base monthly fee of C$3,000.
About ESE Entertainment Inc.
ESE Entertainment is a Europe based entertainment and technology company focused on gaming, particularly on esports. ESE consists of multiple assets and world-class operators in the gaming and esports industries. Capabilities include but are not limited to: physical infrastructure, broadcasting, global distribution for gaming and esports-related content, advertising, sponsorship support, and a growing esport team franchise. ESE is focused on bridging Europe, Asia and North America.
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that ESE anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to the planned benefits from the Agreement and the strategies, expectations, planned operations and future actions of ESE and K1CK. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of ESE to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to ESE, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of ESE should be considered highly speculative.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ESE Entertainment Inc.