Golden Matrix Group and MeridianBet Group have entered into an amended and restated purchase agreement, modifying various terms and extending the required closing date. The agreement outlines Golden Matrix’s acquisition of MeridianBet Group and its affiliated companies. The revised terms include a reduction in the cash amount required for the transaction and adjustments to the stock consideration, reflecting a strategic reevaluation of the initial agreement.
Amended Purchase Agreement:
Golden Matrix and MeridianBet have mutually agreed to amend and restate the purchase agreement originally outlined between the two entities. This strategic move involves extending the required closing date and introducing modifications to specific terms of the agreement. The aim is to create a more favorable and mutually beneficial arrangement for both parties.
Financial Adjustments:
One significant adjustment in the amended agreement is the reduction in the cash required for the closing of the transaction. The initial amount of $50 million has been revised to $30 million, with an additional $20 million in non-contingent cash consideration due post-closing. This adjustment reflects a thoughtful reassessment of the financial aspects of the transaction, allowing for increased flexibility and financial viability.
Shareholder Approval and Financing:
Golden Matrix is actively working towards obtaining the necessary financing for the revised transaction. The company plans to file the required proxy statement in the third quarter of 2023, seeking shareholder approval for the acquisition. This step ensures transparency and aligns with corporate governance best practices.
Revised Transaction Value:
Anthony Brian Goodman, CEO of Golden Matrix, highlighted that the revised cash and stock transaction now holds an approximate value of $33 million. The stock consideration is priced at $3 per share, representing an approximate 38% premium to GMGI’s 30-day VWAP closing price. This adjustment reflects a strategic balance between cash and stock components to enhance overall transaction value.
Projected Performance:
Goodman provided insights into MeridianBet’s financial performance, noting a considerable increase in year-to-date revenues compared to the previous year. The proforma performance of the combined company, post-acquisition, is now projected to reach approximately $31 million in Adjusted EBITDA for the October 31, 2023, fiscal year. Additionally, the combined entity is expected to achieve approximately $139 million in revenues, based on MeridianBet’s year-to-date financial statements and financial projections.
The amended purchase agreement between Golden Matrix Group and MeridianBet Group represents a strategic reevaluation to optimize the terms and enhance the overall transaction value. The adjustments in cash requirements and stock consideration showcase a commitment to financial flexibility and a mutually beneficial collaboration. As the companies move forward, the projected financial performance positions the combined entity for growth and success in the dynamic landscape of the gaming industry.