GameOn (CSE: GET) (OTCQB: GMETF), a cutting-edge fantasy sports platform collaborating with leading global IPs to introduce, manage, and monetize web3 games, has revealed a significant investment from prominent players in the industry, Lightning Capital and Flow. These funds will expedite the development of GameOn’s innovative PLAYN3XT platform and facilitate the acquisition of esteemed IP partnerships within major leagues.
The combined funds generated reached $1.7m through two financial instruments:
- A set of convertible notes, led by Lightning Capital (the “Investment”), was executed on June 8, 2023. The Investment carries a principal amount of $1.2m and accrues simple interest at a yearly rate of 10%. Detailed terms of the Investment are provided below.
- A non-dilutive grant from the Flow Ecosystem Fund, signed on June 5, 2023, is contingent upon undisclosed significant league endeavors and milestones.
“We are thrilled to have earned the confidence and support of prominent web3 industry leaders,” declared GameOn CEO, Matt Bailey, exuding utmost confidence. “This acknowledgement from web3 powerhouses is a testament to the exceptional capabilities of our team, the quality of our product, and the strength of our business. We remain committed to forging connections with valuable resources, talented individuals, and influential organizations that foster success. With unwavering determination, we are aggressively pursuing major league IP acquisitions that will drive scaled profitability, propelled by our best-in-class product and flawless execution.”
Lightning Capital stands as a reputable Digital Asset Investment Firm, boasting an extensive track record of over three years, infused with profound web3 expertise. Their distinguished reputation combines with unparalleled experience, offering investors an array of risk/reward opportunities through three distinct funds. The Lightning Venture Fund primarily focuses on early-stage investments in projects, protocols, and picks-and-shovels businesses, catering to the expansive digital asset and web3 ecosystem. With an eye on the largest total addressable market, Lightning Capital targets 10-20 investments per fund and provides invaluable operational expertise to their portfolio companies.
Jock Percy, the General Partner at Lightning Capital, expressed unyielding confidence in GameOn, stating, “GameOn’s cutting-edge technology and demonstrated ability to forge major brand partnerships make it an exceptional investment opportunity. Matt and his team are world-class, and we are thrilled to collaborate with them as a long-term partner, driving their ambitious major league strategy and providing unwavering operational support.”
The Flow Ecosystem Fund represents the most significant joint commitment made towards any blockchain ecosystem. This fund is closely tied to Flow, the blockchain platform initiated by Dapper Labs, the renowned company behind the successful NBA Top Shot. Dapper Labs’ current studio partners include prestigious entities such as the NBA, NBPA, WNBA, WNBPA, LaLiga, Warner Music Group, Ubisoft, Genies, and UFC. Noteworthy investors in Dapper Labs comprise Andreessen Horowitz, Coatue, Union Square Ventures, Venrock, BOND, GIC, Google Ventures (GV), Samsung, as well as the founders of Dreamworks, Reddit, Coinbase, Zynga, and AngelList, among other prominent figures.
Mickey Maher, the SVP of Flow Ecosystem Partnerships, expressed admiration for GameOn’s next-generation fantasy sports platform, stating, “We are truly impressed by GameOn’s innovative approach to fantasy sports. We have witnessed remarkable success stories of IPs on Flow, such as NBA Top Shot from Dapper Labs. We eagerly anticipate sharing our knowledge, experience, and network with GameOn and becoming a key strategic partner in their long-term success.”
To provide further insights into the company’s funding, financial filings, and future plans, GameOn will be hosting an investor webinar on July 6. Those interested in attending the event can request an invitation by emailing [email protected].
Terms of the Investment
The convertible note, which comprises the Investment, is confidently offered through a non-brokered private placement. A competitive rate of ten percent (10%) per annum in simple interest will accrue. GameOn is obligated to repay the principal and accrued interest to the esteemed Holders of the Investment (the “Holders”) on the Maturity Date, which is twenty-four (24) months from the date of the Investment issuance. However, GameOn may choose to convert the Investment into common shares (“Shares”) earlier with the agreement of the Holders, provided that GameOn compensates the Holders with the full interest that would have been due if they had held the Investment until the Maturity Date. Additionally, the Holders may demand repayment before the Maturity Date. The Investment, along with any accrued but unpaid interest, is convertible into GameOn Shares at a favorable price of $0.10 per Share. It is important to note that the securities issued will be subject to a 4-month one day hold period starting from the date of the issuance of the convertible notes forming the Investment or the Shares. The successful completion of the private placement is contingent upon obtaining all necessary approvals, including the approval of the CSE. The proceeds from this offering will be utilized for general working capital purposes, further bolstering GameOn’s overall operations.