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Golden Matrix Enters Into Agreement to Acquire 80 Percent Controlling Interest
in Business-To-Consumer Competitions Company RKings
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GOLDEN MATRIX ENTERS INTO AGREEMENT TO ACQUIRE 80 PERCENT CONTROLLING INTEREST
IN BUSINESS-TO-CONSUMER COMPETITIONS COMPANY RKINGS

December 03, 2021 09:20 ET | Source: Golden Matrix Group Inc, Follow Golden
Matrix Group Inc,

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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.”

“We hope that this acquisition will be a catalyst to our overall growth, as we
anticipate rolling out RKings offerings to other global markets in the future,
whilst leveraging GMGI’s state-of-the-art player acquisition and loyalty
technology. In addition to strengthening revenues and profitability, the
combined company is expected to benefit from valuable cross-selling
opportunities,” stated Mr. Goodman.

"We are very excited to work with the team at GMGI and be a part of their
ongoing success,” said Paul Hardman and Mark Weir, founders of RKings, who
continued, “Beyond contributions of expected revenues and profits to GMGI’s
existing business, we believe this strategic relationship provides a significant
opportunity to grow RKings’ existing business in additional markets.”

The acquisition, when closed, will have an effective date of November 1, 2021.

Full details of the purchase agreement and related terms are outlined in the
Current Report on Form 8-K which GMGI filed today with the Securities and
Exchange Commission.

About RKings
Based in Northern Ireland, RKings is a prize competition business offering
customers in Ireland and the United Kingdom paid for entry, and free entry,
routes to enter prize competitions in order to win a range of consumer products
as prizes. Customers can access competitions via iOS or Android apps as well as
online where they can win prizes ranging from super cars through to luxury
holidays. 

The competitions are currently open only to residents of Ireland and the United
Kingdom.

About Golden Matrix

Golden Matrix Group, based in Las Vegas NV, is an established gaming technology
company that develops and owns online gaming IP and builds configurable and
scalable white-label social gaming platforms for its international customers,
currently located primarily in the Asia Pacific region. The gaming IP includes
tools for marketing, acquisition, retention and monetization of users. The
Company's platform can be accessed through both desktop and mobile applications.
Our sophisticated software automatically declines any gaming or redemption
requests from within the United States, in strict compliance with current US
law.

Forward-Looking Statements

Certain statements made in this press release contain forward-looking
information within the meaning of applicable securities laws ("forward-looking
statements"). These forward-looking statements represent the Company's current
expectations or beliefs concerning future events and can generally be identified
using statements that include words such as "estimate," "expects," "project,"
"believe," "anticipate," "intend," "plan," "foresee," "forecast," "likely,"
"will," "target" or similar words or phrases. These forward-looking statements
are subject to risks, uncertainties and other factors, many of which are outside
of the Company's control which could cause actual results to differ materially
from the results expressed or implied in the forward-looking statements,
including, but not limited to, the ability of the parties to close the purchase
agreement described above on the terms set forth in, and pursuant to the
required timing set forth in, the agreement, if at all; the occurrence of any
event, change or other circumstances that could give rise to the right of one or
all of the parties to terminate the purchase agreement; the effect of such
termination; the ability to meet the closing conditions of the purchase
agreement on a timely basis or at all; the impact of the COVID-19 pandemic on
the Company; the future revenues and profitability (or non-profitability) of
RKings following the closing, the Company’s ability to integrate the operations
of RKings into the Company’s current operations and costs associated therewith,
the Company’s ability to scale RKings, potential synergies and benefits expected
in connection with the planned acquisition, and additional regulations,
restrictions and requirements the Company will become subject to as a result of
such planned acquisition; the need for additional financing, the terms of such
financing and the availability of such financing; the ability of the Company to
manage growth; disruptions caused by acquisitions (including the acquisition
described above); the Company’s ability to complete acquisitions on favorable
terms, if at all; the Company's reliance on its management; the fact that the
Company's chief executive officer has voting control over the Company; related
party relationships; the potential effect of economic downturns and market
conditions on the Company's operations and prospects; the Company's ability to
protect proprietary information; the ability of the Company to compete in its
market; the Company's lack of effective internal controls; dilution caused by
efforts to obtain additional financing and complete acquisitions; the effect of
future regulation, the Company's ability to comply with regulations and
potential penalties in the event it fails to comply with such regulations; the
risks associated with gaming fraud, user cheating and cyber-attacks; risks
associated with systems failures and failures of technology and infrastructure
on which the Company's programs rely; foreign exchange and currency risks; the
outcome of contingencies, including legal proceedings in the normal course of
business; the ability to compete against existing and new competitors; the
ability to manage expenses associated with sales and marketing and necessary
general and administrative and technology investments; and general consumer
sentiment and economic conditions that may affect levels of discretionary
customer purchases of the Company's products, among others. Forward-looking
statements speak only as of the date they are made. The Company undertakes no
obligation to publicly update any of the forward-looking statements, whether
because of new information, future events or otherwise, made in this release or
in any of its Securities and Exchange Commission (SEC) filings, whether as a
result of new information, future events or otherwise that occur after that
date, except as otherwise provided by law.  Consequently, you should not
consider any such list to be a complete set of all potential risks and
uncertainties. More information on potential factors that could affect the
Company's financial results is included from time to time in the
"Forward-Looking Statements," "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" sections of the
Company's periodic and current filings with the SEC, including the Form 10-Qs
and Form 10-Ks, filed with the SEC and available at www.sec.gov. 

The financial information of RKings provided above is based on information
internally compiled by RKings and has not been reviewed or audited by an
independent auditing firm. As such, those amounts are inherently uncertain and
subject to change. For example, during the course of the preparation of the
final audited financial statements and related notes for RKings, additional
items that would require adjustments to be made to the financial results
presented above may be identified. You should read this information together
with the final audited financial statements and notes thereto relating to
RKings, which GMGI plans to file in a Current Report on Form 8-K/A in the
future, once such financial statements are complete.

The Company cautions that the foregoing list of important factors is not
complete. All subsequent written and oral forward-looking statements
attributable to the Company or any person acting on behalf of the Company are
expressly qualified in their entirety by the cautionary statements referenced
above. Other unknown or unpredictable factors also could have material adverse
effects on the Company’s future results. The forward-looking statements included
in this press release are made only as of the date hereof. The Company cannot
guarantee future results, levels of activity, performance, or achievements.
Accordingly, you should not place undue reliance on these forward-looking
statements. Finally, the Company undertakes no obligation to update these
statements after the date of this release, except as required by law, and takes
no obligation to update or correct information prepared by third parties that
are not paid for by the Company. If we update one or more forward-looking
statements, no inference should be drawn that we will make additional updates
with respect to those or other forward-looking statements.

Connect with us:

Twitter - https://twitter.com/GMGI_Group

Instagram - https://www.instagram.com/goldenmatrixgroup/

Golden Matrix Group



info@goldenmatrix.com

www.goldenmatrix.com


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CONTACT DATA

            Scott Yan
            

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