Golden Matrix Enters Into Agreement to Acquire 80 Percent Controlling Interest in Business-To-Consumer Competitions Company RKings

LAS VEGAS, Dec. 03, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Golden Matrix Group, Inc. (OTCQX: GMGI) (the “Company” or “GMGI”), a developer and licenser of social gaming platforms, systems and gaming content, today announced it has entered into a purchase agreement to acquire an 80 percent controlling ownership interest in UK-based RKingsCompetitions Ltd. (http://www.rkingscompetitions.com/ “RKings”), one of Ireland’s and the United Kingdom’s leading independent online competition companies. RKings is a well-established business-to-consumer (B2C) skilled tournament company.

RKings’ Business Highlights:

• Generated estimated revenues in excess of $29 million USD and an annual net income of more than $2.4 million USD during the fiscal year ending October 31, 2021. 

• Total followers across all social media platforms in excess of 467,000.

• Total active clients in excess of 25,000 per month.

• Total prizes awarded during 2020 and 2021 more than $54 million USD. 

• Prizes include residential properties, luxury and exotic motor vehicles, holiday packages, technology packages and cash.

According to terms of the agreement, GMGI will acquire an 80% ownership interest in RKings for a payment of approximately $10.6 million USD with approximately 50% payable in cash and remainder in restricted shares of GMGI common stock (valued at $8.00 USD per share), as well as additional consideration to be paid equal to 80% of R Kings’ net asset value as of October 31, 2021, determined at the conclusion of audit thereof, payable in shares of common stock.

Additionally, GMGI will be granted an option to purchase the remaining 20 percent interest of RKings subject to certain requirements.

The agreement also includes an additional earnout opportunity for the sellers to earn up to 4 million GBP of additional consideration, in the event certain post-closing EBITDA targets are met during the year ended October 31, 2022, payable in cash or stock (at $8.00 USD per share), at GMGI’s option.

The purchase is subject to customary closing conditions which are expected to be satisfied in the next several days.

“We are very excited to move forward in executing our strategy to acquire businesses which we believe complement our core technology and expertise and allow us to leverage our technology to grow revenues and create value for our shareholders,” said GMGI CEO Brian Goodman, who continued, “We believe that this will be an important acquisition and that RKings will not only add revenue to the Company, but will also be profitable and generate positive cash flow. Additionally, this marks our entry into a new regulated market in the B2C space, and what we expect will be the beginning of a meaningful expansion into geographic markets outside of the Asia Pacific (APAC) region.”