Permanent CEO position adds stability as the company further engages in its expansion plan
Montréal, Québec, Canada, November 14, 2022 — React Gaming Group Inc. (“React Gaming” or the “Corporation”) (TSXV: RGG, OTCQB: ITMZF) is pleased to announce that it has retained Leigh Hughes as its permanent CEO.
“Leigh has proven to be a strong leader since his appointment as Interim CEO in June and we are thrilled that he has agreed to remain as React Gaming’s permanent CEO,” said Philip Nolan, a director of React Gaming. “His strong business acumen and his leadership have allowed us to work as a team and have already delivered some very positive results, namely through the various partnerships that have been executed and our ongoing activities to drive growth. We believe that Leigh has the capacity to unlock React Gaming’s full potential and create sustainable long-term value for our shareholders.”
As previously reported, Leigh Hughes is an entrepreneur and venture capitalist with over 20 years of experience working with private and public companies across the globe, particularly in North America, Australia and the Asia-Pacific region. He is also the founder of COMVERJ Ventures, which helps clients identify opportunities for change in the fields of mergers and acquisitions, capital markets, business strategy and innovation. COMVERJ Ventures has worked with numerous public companies in the United States, Canada, Australia and Europe.
“I am proud and thrilled to pursue my relationship with React Gaming on a permanent basis and am deeply committed to making a success of this promising company,” said Leigh Hughes, CEO of React Gaming. “Since my appointment as Interim CEO, our team has been working relentlessly to achieve React Gaming’s objective of becoming a leader in the esports space. Over the last few months, we have been laying solid foundations that will enable us to grow our various subsidiaries in the B2B and B2C markets, while continuing to prioritize revenue generation and profitability. Our current financing and proposed new share structure, which have been well received by existing and new investors, will also support our growth initiatives, on which we hope to share news very soon. My ultimate goal as CEO and a major shareholder is to create an exit strategy that will be beneficial for all our shareholders.”
Further details of 4:1 share consolidation
The Corporation is also pleased to announce further details regarding the proposed consolidation of its issued and outstanding share capital (the “Share Consolidation”) in reference to its news release dated October 24, 2022.
At the annual and special meeting of the holders of common shares of the Corporation (the “Shareholders”) to be held on November 17, 2022, the Shareholders will be asked to consider and, if deemed appropriate, to pass, with or without variation, a special resolution approving the Share Consolidation on the basis of four pre-consolidation common shares for each post-consolidation common share. In the event that the Share Consolidation results in a registered Shareholder holding a fraction of a common share on a post-Share-Consolidation basis, such fractional common share will be rounded down to the nearest whole number and any fractional common share post Share Consolidation will be canceled without payment of any consideration. In all other respects, the common shares post Share Consolidation will have the same attributes as the existing common shares. The Share Consolidation will not materially change a Shareholder’s proportionate interest in the Corporation, even though a smaller number of common shares will represent such ownership. The Corporation currently has 167,439,734 common shares issued and outstanding. Following the Share Consolidation, the Corporation will have approximately 41,859,933 common shares issued and outstanding prior to rounding for fractional common shares.
The Corporation is proposing to effect the Share Consolidation because it believes that the new capital structure would enhance its ability to realize future financings. The Corporation also believes that the new capital structure will be more appealing to prospective institutional shareholders and will aid management in its efforts to expand and diversify the Corporation's shareholder base, with the goal of establishing a trading price that more accurately reflects the underlying value and future potential of its operations.
The Corporation will not change its name in connection with the Share Consolidation.
Completion of the Share Consolidation is subject to approval of the Shareholders and acceptance of the TSX Venture Exchange.
About React Gaming Group
React Gaming Group (TSXV: RGG) (OTCQB: ITMZF) is a publicly traded holding company that stands at the forefront of the esports and iGaming industry. By investing in innovative technologies that enhance tournaments, teams, and wagering, we provide our users with gaming platforms that produce non-stop action, exciting outcomes, and unparalleled enjoyment. Through the use of intelligent data, we also connect our sponsors to robust communities within the rapidly evolving industry, ensuring maximum engagement and substantial reward. For more information, please visit us at reactgaming.ca and follow us on LinkedIn, Twitter, Instagram and YouTube.
This news release may contain “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations, and include but are not limited to the statements regarding the completion of the Private Placement, payment of a finder’s fee in connection with the Private Placement, the securities to be issued under the Private Placement, closing the Private Placement in tranches, the offering jurisdictions of the Private Placement, effecting the Share Consolidation, mailing of the information circular, and receipt of approval from the TSXV with respect to the Private Placement and Share Consolidation. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. The Corporation’s statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of the Corporation’s control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Corporation’s activities, including: that the Corporation’s assumptions in making forward-looking statements may prove to be incorrect; general adverse market conditions and competition; the inability to finance operations and/or obtain any future strategic investment necessary to implement new technologies; the inability to build a sustainable, conscientious company with a stronger presence online through new products in esports and gaming; the inability to obtain, or maintain, gaming license(s); and that market conditions related to the COVID-19 pandemic may negatively affect the outcome of the business or operations of the Corporation, including its results and financial condition. Except as required by securities law, the Corporation does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.