Golden Matrix has entered into a further amended and restated Meridianbet purchase agreement, which has extended the potential date of completion and modified terms on closing.
The transaction, with a value of approximately $331m, raised from $300m in a prior amendment, is now expected to close in the fourth quarter of the current year or the first of 2024.
This is subject to a range of customary closing conditions that include, but not limited to, GMGI shareholder approval and Nasdaq approval, among other items.
It is expected that the online gaming developer, licensor and operator will file the required proxy statement requesting shareholder approval for the issuance of the shares of common stock issuable in connection with the transaction, and other matters, with the SEC for shareholder approval in the near future.
It has also been disclosed that a modification to the financial closing terms allows for the use of up to $20m of cash-on-hand of Meridianbet Group to pay a portion of the $30m cash payable by Golden Matrix at the closing of the transaction.
“These recent filings reinforce the importance of this strategic acquisition, and demonstrate both companies’ willingness and ability to close the transaction,” commented Anthony Brian Goodman, GMGI CEO
“The amendment allowing GMGI and the sellers to use up to $20m of the MeridianBet Group’s cash-on-hand at closing (subject to the sole discretion of the sellers), not only provides the company with potential greater flexibility on financing, but we believe also demonstrates the sellers’ confidence in the value of creating a combined entity capable of being greater than the sum of its parts.”
Furthermore, it was also noted that the online sports betting and gaming group has increased its revenue “considerably” when contrasted to its past-year performance. Expectations for the combined company’s revenue and earnings performances, following completion, have subsequently been ramped up.
Despite this, last month Goodman partially aligned costs associated with the delayed acquisition as resulting in the group slipping to a net loss of $965,628 through its third fiscal quarter ending July 31, 2023.
Following this latest update, he concluded: “Both MeridianBet Group CEO, Zoran Milosevic, and I are confident that the completion of this acquisition will drive long-term value for all our stakeholders as we seek to benefit from economies of scale and both companies’ historical revenue and profit growth.
“We are also working closely with our bankers in an effort to raise the most beneficial financing available for the transaction.”
