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NYX Gaming in deal with Global Daily Fantasy Sports
Friday, July 29, 2016 : GLOBAL DAILY FANTASY SPORTS SEALS DISTRIBUTION DEAL WITH N.Y.X. GAMING (Update)
Fantasy sports platform will be available through NYX.
Global Daily Fantasy Sports Inc., a publicly traded company on the Toronto Venture Stock Exchange, has announced a distribution agreement that will see its desktop and mobile B2B fantasy sports platform available on the NYX Gaming Open Gaming System network.
The Canadian firm also advised that it intends to complete an additional private placement for up to $6 million.
The agreement with NYX includes:
* NYX grants GDFS Inc exclusive worldwide right to distribute its DFS product on the OGS Platform and OGS Network;
* NYX will offer and promote the DFS product to its current and future customer base as its sole daily fantasy sports solution and will use its sales and marketing teams to maximise commercial exploitation of the DFS Product;
* In consideration for the distribution rights, the GDFS Inc. paid NYX US $125,000 upon the signing of a term sheet, US $125,000 upon the signing of the definitive NYX Agreement and must pay a further US $250,000 to NYX upon the commercial launch of the DFS product on the OGS Platform and OGS Network.
* In addition, the Company will pay to NYX a monthly royalty; and
* The term of the NYX agreement is five years from the date of first commercial use, which may be renewed on written notice to NYX for an additional five year period subject to certain conditions being met.
A spokesman for Global Daily Fantasy Sports Inc. said that NYX is trusted by some of the world’s most successful operators worldwide including Bet365, William Hill, Ladbrokes, Paddy Power, Betfair, SkyBet and Coral, who have databases ranging up to 35 million online players.
Darcy Krogh, CEO of Global Daily Fantasy Sports Inc. said in a company statement Thursday:
“Our distribution partnership with NYX is a key alliance for the launch of our B2B daily fantasy sports product in Europe. Having the exclusive integration into the NYX OGS platform gives our DFS product access to some of the largest gaming brands in Europe and should provide our network immediate liquidity."
Krogh took the opportunity to additionally announce that his company intends to complete a non-brokered “part and parcel” financing to raise up to $6,000,000 by the issuance of up to 15,000,000 units at a price of $0.40 per unit.
Each unit will consist of one share and one-half of a share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at an exercise price of $0.75 during the first year following the closing date of the private placement and an exercise price of $1.00 during the second year following the closing date.
The company may pay finder’s fees at rates to be negotiated in connection with this financing. Proceeds from the offering will be used towards further development and marketing of the DFS product along with additional working capital.
Global Daily Fantasy Sports Inc. has received subscriptions for its previously announced $2,000,000 financing (20,000,000 units at $0.10 per unit) and has closed this financing.
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