2022-08-29 | TSX:FANS | Press Launch

  • Complete income of $5.46 million in Q2 Fiscal 2022, a rise of 461% over Q2 Fiscal 2021
  • Complete income for the six months ended June 30, 2022 was $15.13 million
  • Firm signed licensing cope with Welsh bookmaker Dragon Guess to launch new sports activities betting portal, powered by FansUnite’s Chameleon platform

Vancouver, British Columbia–(Newsfile Corp. – August 29, 2022) – FansUnite Leisure Inc. (TSX: FANS) (OTCQX: FUNFF) (“FansUnite” or the “Firm”) introduced that it has filed its consolidated interim monetary statements and related administration’s dialogue and evaluation (“MD&A”) for the three and 6 months ended June 30, 2022. All quantities are said in Canadian dollars until in any other case indicated.

Second Quarter Fiscal 2022 Monetary Highlights:

  • Complete income for the three months ended June 30, 2022 was $5.46 million, a rise of roughly 461% as in comparison with $0.97 million over the identical interval within the final fiscal 12 months
  • Complete income for the six months ended June 30, 2022 was $15.13 million, a rise of roughly 640% as in comparison with $2.04 million over the identical interval within the final fiscal 12 months
  • Gross margin of $2.25 million (41%) in Q2 Fiscal 2022, as in comparison with $0.41 million (42%) over the identical interval within the final fiscal 12 months
  • Web lack of $15.91 million in Q2 Fiscal 2022, which incorporates non-cash bills of $9.50 million, as in comparison with $2.93 million over the identical interval within the final fiscal 12 months, which incorporates non-cash bills of $0.68 million
  • As of June 30, 2022, the Firm had internet working capital of $8.8 million in comparison with $14.9 million at December 31, 2021

Second Quarter Fiscal 2022 Operational Highlights:

  • On April 19, 2022, the Firm signed a Memorandum of Understanding to enter right into a long-term licensing settlement with distinguished Welsh bookmaking companies supplier Lovell Brothers Restricted, homeowners of the Dragon Guess model, to launch a brand new on-line sports activities wagering portal, www.dragonbet.co.uk, which will probably be powered by FansUnite’s Chameleon iGaming platform
  • On June 9, 2022, the Firm introduced its intention to provoke a traditional course issuer bid (“NCIB”) with respect to its widespread shares by way of the services of the Canadian Securities Change. Pursuant to the NCIB, FansUnite might buy as much as 16,115,728 Shares, representing 5% of the issued and excellent shares of that class as of June 9, 2022
  • On June 30, 2022, FansUnite introduced that its widespread shares have been accepted for itemizing on Toronto Inventory Change (“TSX”), which is able to start buying and selling on the TSX beneath its current image “FANS”, efficient on the market opening on July 5, 2022

Subsequent Occasions to Second Quarter Fiscal 2022:

  • On July 5, 2022, the Firm’s widespread shares started buying and selling on the TSX beneath the image “FANS”
  • On July 13, 2022, the Firm introduced that it entered right into a definitive three-year licensing settlement dated July 11, 2022 with Lovell Brothers Restricted, homeowners of Dragon Guess, to launch a brand new on-line sports activities betting platform, www.dragonbet.co.uk, powered by FansUnite’s Chameleon iGaming answer
  • On August 3, 2022, the Firm’s U.S.-based reside activation model Betting Hero entered into an settlement with Bankroll, a brand new luxurious sports activities bar expertise coming this fall to Philadelphia, Pennsylvania, to assist construct out Bankroll’s sports activities betting-focused concierge crew
  • On August 24, 2022 the Firm entered into an settlement to license its proprietary Participant Account Administration software program to Betr Holdings Inc. to run its new sports activities betting model, betr.

“In the course of the second quarter, we captured important progress with income of $5.46 million, a rise of 461% in comparison with the identical interval final 12 months,” mentioned Scott Burton, CEO of FansUnite. “Our B2B and B2C segments continued to ship sturdy operational outcomes, which have been primarily pushed by American Affiliate and McBookie. Moreover, this quarter noticed us strengthening our operations to put the groundwork for continued progress as we’ve entered a licensing settlement with Welsh bookmaker Dragon Guess and expanded American Affiliate’s presence in america by way of its reside activation arm Betting Hero.”

Burton added, “All through the third quarter, we intend to succeed in new milestones in our B2B phase by signing extra partnerships with international manufacturers inside the sports activities betting and iGaming trade and additional develop all enterprise verticals.”

Sure data offered on this information launch is extracted from the unaudited condensed consolidated interim monetary statements (the “Monetary Statements”) and Administration’s Dialogue & Evaluation (“MD&A”) of the Firm for the three and 6 months ended June 30, 2022 and needs to be learn along side them. It is just within the context of the data and disclosures contained within the Monetary Statements and MD&A that an investor can correctly analyze this data. The Monetary Statements and MD&A might be discovered beneath the Firm’s profile on SEDAR.

About FansUnite Leisure Inc.

FansUnite is a world sports activities and leisure firm, specializing in know-how associated to regulated and lawful on-line gaming. FansUnite’s one-of-a-kind iGaming platform Chameleon presents operators a full suite of gaming options with a sports activities and esports focus geared for the subsequent technology of on-line bettors and on line casino gamers. Together with offering B2B know-how options, FansUnite operates a number of B2C manufacturers, equivalent to Scottish sportsbook McBookie and Brazilian esportsbook VamosGG, and produces on line casino fashion slot video games beneath its Askott Video games subsidiary. FansUnite is the mum or dad firm of North American-focused American Affiliate, which operates main affiliate manufacturers equivalent to Betting Hero, Props.com, and BetPrep.

For additional data, please contact:

Prit Singh, Investor Relations at FansUnite

ir@fansunite.com

(905) 510-7636

Scott Burton, Chief Govt Officer of FansUnite

scott@fansunite.com

Darius Eghdami, President of FansUnite

darius@fansunite.com

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

DISCLAIMER REGARDING FINANCIAL INFORMATION:‎

The Firm has additionally offered unaudited monetary data for the second quarter of 2022, which has been ready by ‎administration primarily based on data presently out there to the Firm. ‎Accordingly, such monetary data could also be topic to alter primarily based on the outcomes of the Firm’s year-end audit. The making of a modifying or superseding assertion shall not be deemed an ‎admission for any functions that the modified or outmoded assertion, when made, constituted ‎a misrepresentation for functions of relevant securities legal guidelines.‎

FORWARD-LOOKING INFORMATION: ‎

This information launch comprises sure statements that will represent forward-looking data ‎beneath relevant securities legal guidelines. All statements, apart from these of historic reality, which tackle ‎actions, occasions, outcomes, outcomes, developments, efficiency or achievements that FansUnite anticipates or expects might or will happen sooner or later (in complete or partly) needs to be ‎thought-about forward-looking data. Usually, however not at all times, forward-looking data can ‎be recognized by way of phrases equivalent to “plans”, “expects”, “is anticipated”, “funds”, ‎‎”scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations ‎‎(together with unfavourable variations) of such phrases and phrases, or statements fashioned sooner or later ‎tense or indicating that sure actions, occasions or outcomes “might”, “might”, “would”, “would possibly” or ‎‎”will” (or different variations of the forgoing) be taken, happen, be achieved, or come to cross. ‎Ahead-looking statements on this information launch embrace, however should not restricted to, the Firm’s strategic targets, targets, progress technique and focus together with rising income and free money circulation by way of improved operations, accretive acquisitions, inside growth, integrating and innovating operations and income administration; the Firm persevering with to focus on extra B2B offers, each for its Chameleon iGaming platform and RNG on line casino video games; the Firm increasing its footprint within the home, worldwide and US affiliate market; and the completion of the long-term licensing settlement with Lovell Brothers Restricted, homeowners of Dragon Guess, to launch a brand new on-line sports activities betting portal, www.dragonbet.co.uk, on the Chameleon iGaming platform.

Ahead-looking statements are primarily based on assumptions and analyses made by the Firm in ‎gentle of its expertise and its notion of historic traits, present circumstances and anticipated ‎future developments, together with, however not restricted to, expectations and assumptions regarding: curiosity and overseas change charges; capital efficiencies, price saving and synergies; progress and ‎progress charges; the success within the on-line playing and sports activities betting trade; the regulatory setting relevant to on-line playing and sports activities betting; the technological infrastructure and help wanted to host the Firm’s on-line playing and sports activities betting platforms and purposes; any cryptocurrency purposes to the Firm’s enterprise; and the Firm’s progress plan. ‎Whereas FansUnite considers these assumptions to be cheap, primarily based on data ‎presently out there, they might show to be incorrect. Readers are cautioned to not place undue ‎reliance on forward-looking statements. As well as, forward-looking statements essentially ‎contain identified and unknown dangers, together with, with out limitation, dangers related to normal ‎financial circumstances; audit-risks; dangers related to the regulatory environments within the jurisdictions the Firm operates in; technology-related dangers that would adversely have an effect on the Firm’s potential to function its on-line playing and sports activities betting platforms and purposes, dangers associated to the novel coronavirus (COVID-19) international pandemic and any results it might need on the Firm’s enterprise thereto. Readers are cautioned that the foregoing checklist just isn’t exhaustive. For extra ‎data on the danger, uncertainties and assumptions that would trigger anticipated alternatives ‎and precise outcomes to vary materially, please discuss with the general public filings of FansUnite ‎which can be found on SEDAR at www.sedar.com. Readers are additional cautioned to not place undue reliance on forward-looking statements as there might be no assurance that the plans, intentions or expectations upon which they’re positioned will happen. Such data, though thought-about cheap by administration on the time of preparation, might show to be incorrect and ‎precise outcomes might differ materially from these anticipated. Ahead-looking statements ‎contained on this information launch are expressly certified by this cautionary assertion and replicate our ‎expectations as of the date hereof, and thus are topic to alter thereafter. FansUnite ‎disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not ‎on account of new data, future occasions or in any other case, besides as required by relevant regulation.‎

FansUnite Leisure Inc.

Condensed Consolidated Interim Statements of Monetary Place

(Unaudited – Quantities Expressed in Canadian dollars)

June 30, 2022 December 31, 2021
Belongings
Present
Money and money equivalents $ 4,787,913 $ 13,973,867
Restricted money 215,353 204,731
Brief-term investments 815,560 918,847
Receivables 3 5,843,196 6,802,815
Due from associated events 10 236,031 77,671
Pay as you go bills and deposits 336,582 335,809
Complete present belongings 12,234,635 22,313,740
Non-current
Gear 5 76,867 59,693
Goodwill 6 87,001,801 85,795,601
Intangible belongings 6 59,892,534 69,360,587
Digital currencies 6 26,979 107,446
Proper of use belongings 5 432,784 108,719
Deferred tax asset 864,370 122,042
Lengthy-term investments 74,163 77,162
Complete Belongings $ 160,604,133 $ 177,944,990
Liabilities
Present
Accounts payable and accrued liabilities 4 $ 3,131,107 $ 7,108,134
Because of associated events 10 47,504 164,981
Revenue taxes payable 116,610 49,258
Deferred and contingent consideration 9 19,136,465 22,157,999
Lease legal responsibility 5 164,799 71,043
Complete present liabilities 22,596,485 29,551,415
Non-current
Deferred and contingent consideration 9 63,034,269 65,068,849
Lease legal responsibility 5 216,694 39,411
Complete liabilities 85,847,448 94,659,675
Shareholders’ Fairness
Share capital 7 121,583,155 110,370,147
Share-based cost reserve 8 7,484,659 4,486,909
Warrant reserve 5,491,367 5,491,367
Amassed different complete (loss) revenue 2,544,125 209,448
Deficit (62,346,621) (37,272,556)
Complete Shareholders’ Fairness 74,756,685 83,285,315
Complete Liabilities and Shareholders’ Fairness $ 160,604,133 $ 177,944,990

FansUnite Leisure Inc.

Condensed Consolidated Interim Statements of Loss and Complete Loss

(Unaudited – Quantities Expressed in Canadian dollars)

For the three months ended

June 30

For the six months ended

June 30

2022 2021 2022 2021
Income 15 $ 5,463,924 $ 973,723 $ 15,129,646 $ 2,043,291
Price of income (3,211,729) (567,136) (6,980,919) (1,092,691)
Gross Margin 2,252,195 406,587 8,148,727 950,600
Bills
Promoting, normal and administrative 14 15,395,181 3,347,797 27,186,643 6,403,401
Loss earlier than different gadgets (13,142,986) (2,941,210) (19,037,916) (5,452,801)
Different gadgets
Curiosity and different bills (revenue), internet 14 3,139,792 (11,087) 6,431,181 (34,477)
Revenue tax expense (restoration):
Present (300,489) 257,638
Deferred, internet (72,731) (652,671)
Web loss for the 12 months (15,909,558) (2,930,123) (25,074,064) (5,418,324)
Different complete revenue
Revaluation loss on digital currencies 6 (56,033) (70,756)
Forex translation adjustment 4,394,413 (13,633) 2,405,433 (54,708)
Complete complete loss $ (11,571,178) $ (2,916,490) $ (22,739,387) $ (5,363,616)
Loss per share – fundamental and diluted $ (0.04) $ (0.02) $ (0.08) $ (0.03)
Weighted common variety of widespread shares excellent – fundamental and diluted 303,031,291 183,279,790 294,780,124 167,964,245

FansUnite Leisure Inc.

Condensed Consolidated Interim Statements of Money Flows

(Unaudited – Quantities Expressed in Canadian dollars)

For the six months ended June 30, 2022 2021
Working actions:
Web loss $ (25,074,065) $ (5,418,324)
Restricted money (10,622)
Changes for non-cash gadgets:
Depreciation of kit 74,602 26,009
Amortization of intangible belongings 10,352,431 883,518
Accretion on liabilities 6,312,637
Conversion of subscription receipt legal responsibility (776,865)
Common & administrative bills paid with widespread shares 524,132
Advertising and marketing bills paid with digital currencies 9,711 4,239
Truthful worth achieve on digital currencies (44,315)
Unrealized truthful worth loss on investments 119,252 11,250
Share-based funds 8 3,064,209 492,025
Non-cash curiosity and different revenue 7,713
Deferred tax restoration (652,671)
Modifications in non-cash working capital gadgets:
Receivables 3 960,840 215,042
Pay as you go bills and deposits (773) 390,801
Revenue taxes payable 67,352
Accounts payable 4 (333,034) 128,244
Web money flows utilized in working actions (4,578,286) (4,088,376)
Investing actions
Fee of contingent consideration 9 (2,093,600)
International change on contingent consideration 1,363,694
Fee of internet working capital adjustment 4 (3,801,993)
Disposal (buy) of intangibles (13,351) 70,597
Proceeds (sale) of investments (12,965) 5,896
Buy of kit (42,081) (3,925)
Web money flows (utilized in) offered by investing actions (4,600,296) 72,568
Financing actions
Reimbursement of lease legal responsibility 5 (98,450) (40,289)
Proceeds from brokered financing 12,144,896
Proceeds from warrant/possibility train 72,736 2,474,992
Repurchase of shares (26,937)
Reimbursement of notes and loans payable (544,236)
Funds (to) from associated events 10 (287,790) 8,793
Web money flows (utilized in) offered by financing actions (340,441) 14,044,156
Impact of overseas change 333,069 22,493
Change in money (9,185,954) 10,050,841
Money, starting of the interval 13,973,867 4,431,139
Money, finish of the interval $ 4,787,913 $ 14,481,980

To view the supply model of this press launch, please go to https://www.newsfilecorp.com/launch/135309

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