Tiidal Gaming has officially completed the sale of New Zealand subsidiary Sportsflare to Entain.
The Toronto-based esports firm has sold 100% of its shares for a fee of $13.25m, and has now been released of all of the esports betting developer’s assets and operating activities.
An agreement was first struck between Tiidal Gaming and Entain in March, just seven months after the former’s Board had decided to focus its efforts and resources exclusively on its Sportsflare technology division and ‘embark on the process of divesting its competitive esports team assets’.
The sale of Sportsflare received shareholder approval in April as more than 99% of the common shares represented at the shareholder meeting voted in favour of the transaction.
The deal was expected to close ‘in or about May 2023’ and has now been completed today, June 9.
Today’s announcement further added that the $13.25m will be retained by Tiidal in a holding account for 180 days, during which the company may access the funds to ‘satisfy any working capital adjustment or claims brought by Entain’, while it can also access up to 20% of the funds to pay ‘reasonable costs related to the transaction’.
In connection with the deal, Tiidal granted 2.5 million restricted share units to its CEO – Tom Hearne – which were immediately all vested into 2.5 million common shares of the company. 1.91 million common shares were also issued to Sportsflare personnel.
Today’s press release further stated: “The sale of Sportsflare constituted the sale of substantially all of the assets and operating activities of the Company. The Board of Directors of the Company will assess the available options to return capital received pursuant to the sale of Sportsflare to its shareholders following the expiry of the Holding Period.”