Victory Square Technologies Inc. (OTC: VSQTF) (CSE: VST) is pleased to announce portfolio company, FansUnite Entertainment Inc. (“FansUnite”), has raised $4,457,750 CAD in a private placement financing (the “Private Placement”) valuing FansUnite at over $17,000,000 CAD.
Victory Square incorporated FansUnite earlier this year in order to prepare for an arrangement to spin out the assets of its FansUnite division, which includes an operating subsidiary, FansUnite Media Inc. (acquired 2016). As a result of share issuances from the treasury of FansUnite for nominal consideration to management and market partners and to subscribers pursuant to the Private Placement, the Company’s interest in FansUnite has decreased from 100% to 48.55%. The Private Placement was undertaken as part of FansUnite’s strategy to maximize shareholder value, which includes going public in the fourth quarter of 2018.
FansUnite is focused on utilizing the benefits of blockchain technology to disrupt the sports, gaming, and entertainment industries. FansUnite’s current key offerings are: the FansUnite Protocol – a protocol level standard for sports betting and sports data applications, built on the Ethereum blockchain; the FansUnite Sportsbook – the first decentralized application leveraging the FansUnite Protocol, offering an industry low margin and social elements designed to encourage user collaboration; and subsidiary company FansUnite Media Inc. – a free to play social sports betting community designed to track and analyze results, collaborate with fellow members, and to place fantasy wagers with no monetary risk.
FansUnite is continuing to develop the FansUnite Protocol, Sportsbook, and other applications, and pursuing M&A activity in the sports, gaming and entertainment industries.
The United States Supreme Court ruling on May 14, 2018, allowing the legalization of sports betting on a state-by-state basis has created a significant new regulated sports betting market. FansUnite’s welcoming of regulatory overview, the transparency inherent in blockchain technology, and the industry low margins that FansUnite has created will be a massive win for bettors and fantasy players alike.
“We’re extremely pleased with the impressive oversubscription of the FansUnite private placement,” said Shafin Diamond Tejani, Chief Executive Officer of Victory Square. “FansUnite is utilizing blockchain technology in an industry ripe for growth and have the opportunity to build a protocol that can significantly change the landscape of the sports betting and sports data industries,” said Diamond.
“This is a great milestone for our FansUnite Team,” said Darius Eghdami, Chief Executive Officer of FansUnite. “We’ve assembled a strong team with decades of experience in the sports betting industry and are excited to build a more efficient, transparent and regulated platform.”
Rounding out FansUnite’s executive team of Darius Eghdami, and Duncan McIntyre, Chief Operating Officer, FansUnite has engaged Graeme Moore as Chief Financial Officer. Graeme, a Chartered Professional Accountant, was previously the Controller at Traction on Demand, and lead the finance department of one of Canada’s Best Managed Companies.