At the end of last working week, B.C.-based Kings Entertainment announced that its business combination with Sports Venture Holdings will most likely collapse. The gaming brand explained that it has put tremendous efforts into the deal, but SVH is refusing to finalize the previously agreed business combination. The contract was announced on May 25, 2022.
As stated, Kings Entertainment is headquartered in B.C., Canada, and it was founded back in 2005. The firm is a leading global online service provider for lottery and gambling content. It is also the parent entity to online brands LottoKings and WinTrillions, which acquire high-potential players via their engaging casino and sportsbook offerings and have millions of users already.
Deal Will Not Go Through
What looked like a done and dusted business combination agreement will now collapse, said the gaming provider. In its press release from Friday, March 17, 2023, the B.C. firm explained that SVH is now refusing to complete the previously agreed-upon details from the business combination from May 25, 2022. It remains to be seen whether a resolution can be found.
It can be remembered that the terms of the business combination were agreed on to pursuant to a business combination deal from May 24, 2022, between Kings Entertainment and SVH. Now, pursuant to three extension agreements between the Company and SVH, the outside date to close the Business Combination Agreement had been extended to March 17, 2023, which will be now known as Outside Date.
However, the B.C. company insists that it put tremendous effort, willingness, and ability to finalize the business combination before the outside date of March 17, 2023, but SVH has reported that it does not intend to complete its part of the agreement. Meanwhile, the gambling provider is now assessing all of its options with respect to the enforcement of the agreement, the loan, and its other rights.
Previous Key Highlights from the Firm
In the fall of 2022, Kings Entertainment reported striking a partnership with Native Ads Inc. Via the agreement, the New York-based Native Ads will be able to lead a comprehensive media marketing campaign for the leading iGaming provider and promote it as a top gaming brand raising awareness within digital investor content platforms.
Native Ads is a full-service ad agency that owns and regulates a proprietary ad exchange that touts over 80 integrated supply-side platforms. Through this, it generates daily access to three to seven billion North American ad impressions. Now, the NY-based agency will put its technology and efforts into promoting the B.C. company in the said new campaign.
The summer of 2022 was also quite beneficial to the B.C. company as the supplier of iGaming content reported a significant increase in active customers and lottery revenue for July. For the said month, lottery sales jumped by 18% in comparison to June, with WinTrillions and Lotto Kings both accumulating a hefty CA$446,126 from the prior month, while total active customers spiked by 9%.
Source: “Sports Venture Holdings Refuses to Close Business Combination with Kings Entertainment” PR Newswire, March 17, 2023