The acquisition of the competitive gaming platform, HypeX, adds 50,000 new users to Alpha Tech's user base
VANCOUVER, BC / ACCESSWIRE / December 7, 2020 / Alpha Esports Tech Inc. ("Company" or "Alpha Tech") is pleased to announce it has signed a binding Letter of Intent ("LOI") to acquire 100% of Montreal-based, HypeX Inc. ("HypeX"), a leading Esports tournament and wagering platform with 50,000 registered users, specializing in API based stat aggregation, social function integration, and non-endemic advertising (the "Proposed Transaction").
"We are excited for the opportunity to join the Alpha Tech team on our mission to building the worlds greatest Esports gaming platform," said HypeX co-founder Evan Ryer. ‘'This potential deal demonstrates the significant progress HypeX has made since its inception in 2018 and will significantly expand our product capabilities and offering."
"HypeX has done a tremendous job of building a state of the art gaming platform and they will bring a tremendous amount of value to Alpha Tech through user growth, tournaments, contests, experience, and more," said the Company's interim CEO, Matthew Schmidt. "HypeX will also provide us with two new leaders, Evan Ryer & David Levy, who are both technology entrepreneurs that are very well expertised in the Esports industry, and will provide the Company with many additional partnerships and user acquisition opportunities."
Terms of the Proposed Transaction
The Proposed Transaction is expected to proceed by way of a share purchase agreement, pursuant to which the Company will acquire all of the issued and outstanding shares of HypeX in exchange for 700,000 common shares in the capital of the Company (the "Common Shares") at a deemed price of $0.35 per Common Share, and such Common Shares shall be subject to a 36 month lock-up period.
The Proposed Transaction is subject to various conditions, including the following:
- completion of satisfactory due diligence;
- the Company and HypeX entering into a definitive agreement (the "Definitive Agreement") in respect to the Proposed Transaction;
- the accuracy of the respective representations and warranties of each of the Company and HypeX in the Definitive Agreement; and
- receipt of all requisite corporate, third party and regulatory approvals relating to the Proposed Transaction will have been obtained.
About HypeX Inc.
HypeX has identified Esports demand into 3 major categories of individuals/users: Athletes, audience members, and content creators. By designing functionality to appeal to these 3 categories, game producers and gaming platforms can create significant value for their users, optimizing their overall user experience. HypeX has also identified the most meaningful items that gamers look for when evaluating Esports related entertainment, whether you are a competitive gamer, social gamer, an organization, or simply looking to position yourself within the Esports industry and earn cash for doing so.
In addition to 50,000 users, HypeX has ran over 100,000 tournaments and competitive events, giving away over $50,000 in prize pool money. Currently, HypeX has created partnerships with over 25 different Esports organizations and 10 teams.
About Alpha Esports Tech Inc.
Alpha Esports Tech Inc. is a technology company that focuses on emerging markets in Esports, mobile gaming, ecommerce, blockchain and high growth opportunities. Through a strong portfolio of technology assets, we bring a new edge to modern gaming.
On Behalf of The Board of Directors
Interim CEO and Director
Forward Looking Statement
This news release contains statements and information that, to the extent that they are not historical fact, may constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information may include financial and other projections, as well as statements regarding future plans, objectives or economic performance, or the assumption underlying any of the foregoing. In some cases, forward-looking statements can be identified by terms such as "may", "would", "could", "will", "likely", "except", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate", "outlook", or the negative thereof or other similar expressions concerning matters that are not historical facts.
Forward-looking information is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking information speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The Company does not undertake any obligation to update any forward-looking information to reflect information or events after the date on which it is made or to reflect the occurrence of unanticipated events, except as required by law, including securities laws.
SOURCE: Alpha Esports Tech Inc.