VANCOUVER,
BC, Feb. 15, 2022 /CNW/ - East
Side Games Group (TSX: EAGR) (OTC: EAGRF) ("ESGG" or the
"Company"), Canada's
leading free-to-play mobile game group, announces that its
studio, East Side Games Inc. ("ESG"), which the Company
acquired in February 2021, has
achieved revenue milestones previously set under aforementioned
acquisition. As such, the former shareholders of East Side Games
Inc. will be paid contingent consideration of CAD$20 million.
As previously described in the Company's news
release on February 5, 2021, the
former shareholders of East Side Games Inc. were entitled to
contingent consideration if the Company reached $100 million in gross revenue, on a consolidated
basis, in the 12 months ended February 5,
2022, payable within 30 days. The Company is pleased to
report that the revenue milestone has been met.
Of the contingent consideration, $10 million will be paid by way of 4,444,444
common shares, the maximum common shares allowable under the
agreement, and the remaining $10
million will be paid in cash, using cash on hand. The common
shares will be subject to a four month hold period, pursuant to
applicable securities laws and additional shareholder lock up
arrangements related to ESG directors, officers and shareholders in
connection with the common share portion of the contingent
consideration.
Of such shares, 3,413,114 shares will be issued
to a family trust of which Jason
Bailey, Executive Chair of the Company, is a trustee.
Immediately prior to such issuance, Mr. Bailey indirectly held
37,544,963 common shares of the Company and 400,000 stock options,
representing 49.0% of the outstanding shares prior to the issuance,
calculated on a partially-diluted basis assuming exercise of such
options; after such issuance, Mr. Bailey will indirectly hold
40,958,077 common shares of the Company and 400,000 incentive stock
options, representing 50.5% of the outstanding shares after such
issuance, calculated on a partially-diluted basis assuming exercise
of such options. A copy of Mr. Bailey's early warning report will
be available on SEDAR under the Company's profile.
ABOUT EAST SIDE GAMES GROUP
East Side Games Group (formerly operating under
the name "LEAF Mobile Inc.") is a leading free-to-play mobile game
group, creating engaging games that produce enduring player
loyalty. Our studio groups entrepreneurial culture is anchored in
creativity, execution, and growth through licensing of our
proprietary Game Kit software platform that enables professional
game developers to greatly increase the efficiency and
effectiveness of game creation in addition to organic growth
through a diverse portfolio of original and licensed IP mobile
games that include: Archer: Danger Phone, Bud Farm Idle Tycoon,
Cheech & Chong Bud Farm, The
Goldbergs: Back to the 80s, It's Always Sunny: The Gang Goes Mobile
and Trailer Park Boys Grea$y Money, RuPaul's Drag Race
Superstar and The Office: Somehow We Manage.
We are headquartered in Vancouver, Canada and our games are available
worldwide on the App Store and Google Play. For further
information, please visit: www.eastsidegamesgroup.com and join our
online communities at LinkedIn, Twitter, Facebook, and
Instagram.
Additional information about the Company continues to be
available under its legal name, LEAF Mobile Inc., at
www.sedar.com.
Forward-looking Information
Certain statements in this release are
forward-looking statements, which reflect the expectations of
management regarding the proposed transactions described herein.
Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future. Such
statements are subject to risks and uncertainties that may cause
actual results, performance or developments to differ materially
from those contained in the statements. No assurance can be given
that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the
Company will obtain from them. These forward-looking statements
reflect management's current views and are based on certain
expectations, estimates and assumptions which may prove to be
incorrect. A number of risks and uncertainties could cause our
actual results to differ materially from those expressed or implied
by the forward-looking statements, including factors beyond the
Company's control. These forward-looking statements are made as of
the date of this news release.
SOURCE East Side Games Group