The CEO of 66 Resources Corp. (CSE:SXX), Michael Dake, reported today that his company has acquired 100 percent of Good Gamer in exchange for seven million common shares of SXX.
The proposed transaction was established through a non-binding letter of intent (LOI). It is conditional upon several factors, including the competition a private placement offering, the due diligence by both of the parties, the negotiation of definitive agreement, and—of course—the approval of both shareholders and regulatory bodies.
The LOI grants 66 Resources exclusive rights to negotiate and finalize the terms of the transaction for a period of 45 days. In that time it must execute definitive documentation in order to complete the deal.
Background on 66 Resources and Good Gamer
Both 66 Resources and Good Gamer are Vancouver-based companies, though the operate in very different sectors.
The former is a mining corporation that began listing on the Canadian Securities Exchange last June. In November, 66 Resources completed an acquisition of the Champ Property Gold Project , which is located five kilometers west of Castlegar in the Nelson mining division of British Columbia. The property consists of four contiguous mineral claims which together cover 2606 acres.
Good Gamer is an eSports company dedicated to providing brand-focused engagement marketing services through its viral marketing platform, GoodGamer.gg. It distinguishes itself by focusing on “meaningful, contextual, permissioned engagement and connection between brands and their target audiences” in the eSports community.
As of the proposed transaction announcement, Good Gamer has launched five in-market games. These are Lucky Kingdom Casino Slots, Drop, Soldier Joe, Paddle Bounce Ballz, and Balloon Protect. Each game provides revenue through in-app purchases, while Balloon Protect also offers tournament play that generates revenue through entrance fees.
66 Resources Also Generates $2,100,000 Through Private Placement
As part of the press release, 66 Resources also announced a non-brokered private placement offering of 6,000,000 common shares. These shares will be offered at $0.35 for a total proceed of $2.1 million. The offering could be increased to as many as 8,571,500 shares through an over-allotment option. This would see the gross proceeds increase to a total of $3,000,000.
66 Resources says that the proceeds from this offering will be put towards covering the expenses of the proposed acquisition of Good Gamer. The proceeds will also provide some working capital for the company.
While the private placement offering is a condition for the completion of the Good Gamer transaction, the acquisition is not a condition of the offering.
Since the announcement was made, 66 Resources has seen a significant spike in its share price. It rose from $0.24 to $0.37, repenting a 52-week high for the company.
