Elys Recreation Expertise to Purchase U.S. Bookmaking

NEW YORK–(BUSINESS WIRE)–Elys Recreation Expertise, Corp. (“Elys” or the “Firm”) (Nasdaq:ELYS)(NEO|ELYS), an interactive gaming and sports activities betting expertise firm, introduced in the present day that it has entered right into a definitive buy settlement to accumulate 100% of Bookmakers Firm US LLC, a Nevada restricted legal responsibility firm doing enterprise as U.S. Bookmaking (“USB”).

Based in 2016, USB is a supplier of sports activities wagering companies resembling design and consulting, turn-key sports activities wagering options, and threat administration. USB’s administration crew consists of legendary sports activities e book operator Victor Salerno, President, with over 40 years of expertise within the Nevada sports activities e book enterprise managing threat for over 100 properties and who was inducted into the American Gaming Affiliation’s Gaming Corridor of Fame in 2015 and SBC’s Corridor of Fame in 2020; Bob Kocienski, CEO, with over 40 years of expertise within the gaming trade together with oversight on the sports activities books at a number of excessive profile casinos; Robert Walker, Director of Bookmaking, with over 30 years of expertise in managing sports activities books at a number of casinos together with the Stardust, Mirage, and the MGM; and John Salerno, Director of Operations and Compliance with over 20 years of expertise within the sports activities wagering trade below the tutelage of his father, Victor Salerno.

After the repeal of the Skilled and Beginner Sports activities Safety Act in 2018, USB started offering its companies to the Santa Ana Star On line casino in Albuquerque, New Mexico and expanded its New Mexico presence with service supplier agreements at Isleta Resort & On line casino and Santa Claran Resort & On line casino. USB then expanded to Colorado on the Sky Ute property adopted by agreements with the Odawa Tribe in Michigan and the 4 Bears Tribe in North Dakota. In 2021, USB entered right into a service settlement in Washington D.C. with an anticipated opening for sports activities wagering within the latter a part of 2021. USB additionally entered into its first B2C settlement by leasing a pores and skin for interactive enterprise in Iowa.

The deal construction supplies that, topic to last closing deliveries, which is predicted by July 15, 2021 or as quickly as practicable thereafter (the “Closing Date”), Elys will purchase 100% of USB and USB will turn out to be a completely owned subsidiary of Elys (the “Proposed Transaction”). Pursuant to the phrases of the membership curiosity buy settlement, Elys pays $12 million on the Closing Date of which 50% might be payable in money and 50% in shares of widespread inventory of Elys at a value equal to the amount weighted common value of Elys inventory for the 90 buying and selling days previous the Closing Date, topic to shareholders approval if the variety of shares exceed 4,401,020. As well as, members of USB may have a possibility to obtain as much as a further $38 million plus a possible premium of 10% (or $3.8 million) (the “Earnout”) based mostly upon achievement of sure EBITDA milestones through the subsequent 4 years, payable 50% in money and 50% in inventory at a value equal to the amount weighted common value of Elys widespread inventory for the 90 buying and selling days previous to January 1 of every 12 months through the Earnout interval, topic to acquiring shareholder approval described above and a cap on the variety of shares to be issued not exceeding 5,065,000. Any extra not authorised by shareholders or exceeding the cap shall be paid in money. The annual Earnout funds are based mostly on the achievement of sure adjusted cumulative EBITDA milestones that vary from $(213,850) for 2021 to $19,441,483 for 2025.

“We began US Bookmaking with a imaginative and prescient to construct a high ranked crew of skilled bookmakers in mild of the looming repeal of sports activities betting prohibition within the US. Since 2018, our crew and buyer community have been constructing rapidly and we’re very optimistic in regards to the growth and development alternatives creating within the U.S. sports activities betting market. We realized that to successfully compete and develop with this chance we would have liked a viable expertise companion that is aware of the sports activities betting enterprise extraordinarily properly. Having visited the Elys buying and selling ground in Italy, we’re very impressed with the work that the Elys crew did to Americanize their sports activities betting expertise. We consider the timing of this acquisition is right for USB since we’ve got been vetting the expertise discipline for the perfect sports activities betting expertise whereas preparing for the reopening of our purchasers because the COVID pandemic subsides. The addition of a proprietary sports activities betting platform will enable USB to customise options that our purchasers want whereas having full management of our value construction” stated Vic Salerno, President and founding father of USB. “We sit up for working with the ELYS crew to finish the transaction as rapidly as doable.”

“Our crew at Elys has labored diligently to arrange our modern platform for the booming alternative within the U.S. market. Our focus has been to make sure that our future U.S. purchasers are capable of entry a design-built resolution for sports activities betting within the U.S. that’s domestically supported with complete buying and selling, threat administration, operations and upkeep groups for frictionless deployments. We’re extraordinarily happy with the connection that we developed with the founders and highly-experienced crew at USB throughout our negotiations and the in depth synergies that we consider the mixed entities have. We discovered nice commonality between the household tradition that Elys fosters in its Italian operations, as with USB and its enterprise operations spanning a lot of states within the U.S. We consider that our Elys Gameboard expertise will give USB the instruments they should quickly increase their present U.S. footprint and probably develop operations within the evolving Canadian sports activities betting market,” said Michele Ciavarella, Government Chairman of Elys Recreation Expertise. “The settlement with USB supplies our shareholders with a compelling development alternative via the mixture of our modern betting expertise and USB’s seasoned bookmaking experience.”

Proposed Transaction Construction:

The Proposed Transaction is structured as a membership curiosity buy settlement whereby Elys will purchase 100% of USB and USB will turn out to be a completely owned subsidiary of Elys. USB’s sellers will obtain on the deadline $12 million paid 50% in money and 50% in widespread shares of Elys and an Earnout of as much as $41.8 million paid 50% in money and 50% in widespread shares of Elys, topic to the shareholder approval necessities and cap described above. Closing of the Proposed Transaction is conditional on the passable completion of due diligence, and if required, the approval of Elys’s shareholders and Nasdaq. Every of the events Boards of Administrators have unanimously authorised the membership curiosity buy settlement and the Proposed Transaction on a preliminary foundation, with consummation of the closing being topic to passable equity opinion and passable due diligence, amongst different circumstances. There may be no assurance on condition that the Proposed Transaction will happen.

About Elys Recreation Expertise, Corp.

Elys Recreation Expertise, Corp., is a B2B international gaming expertise firm working in a number of international locations worldwide, with B2C on-line and land-based gaming operations in Italy. In Italy, Elys provides its purchasers a full suite of leisure gaming services and products, resembling sports activities betting, e-sports, digital sports activities, on-line on line casino, poker, bingo, interactive video games and slots.

The Firm’s progressive wagering resolution companies on-line operators, casinos, retail betting institutions and franchise distribution networks. Further info is offered on our company web site at

Traders might also discover us on Twitter @ELYS_gaming.

Ahead-Wanting Statements

This press launch incorporates sure forward-looking statements inside the that means of the protected harbor provisions of the Non-public Securities Litigation Reform Act of 1995. These statements are recognized by means of the phrases “may,” “consider,” “anticipate,” “intend,” “estimate,” “count on,” “could,” “proceed,” “predict,” “potential,” “venture” and related expressions which can be supposed to determine forward-looking statements and embrace statements relating to closing the Proposed Transaction by July 15, 2021 or as quickly as practicable thereafter, the in depth synergies that the mixed entities have, Elys Gameboard expertise giving USB the instruments they should quickly increase their present U.S. footprint and develop operations. These forward-looking statements are based mostly on administration’s expectations and assumptions as of the date of this press launch and are topic to a lot of dangers and uncertainties, lots of that are tough to foretell that might trigger precise outcomes to vary materially from present expectations and assumptions from these set forth or implied by any forward-looking statements. Essential elements that might trigger precise outcomes to vary materially from present expectations embrace, amongst others, the Firm’s capacity to shut the Proposed Transaction as deliberate, the Firm’s capacity to leverage the synergies that the mixed entities have, the Firm’s capacity help USB to quickly increase their present U.S. footprint, the Firm’s capacity to execute on its development technique and imaginative and prescient, the period and scope of the COVID-19 outbreak worldwide, together with the impression to state and native economies, and the chance elements described within the Firm’s Annual Report on Kind 10-Ok for the 12 months ended December 31, 2020 and its subsequent filings with the U.S. Securities and Alternate Fee, together with subsequent periodic studies on Kind 10-Q and present studies on Kind 8-Ok. The data on this launch is offered solely as of the date of this launch, and the Firm undertakes no obligation to replace or revise publicly any forward-looking statements, whether or not on account of new info, future occasions or in any other case, after the date on which the statements are made or to mirror the prevalence of unanticipated occasions, besides as required by legislation.

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