The shareholders of Playmaker Capital Inc. have officially validated the purchase of the company by Better Collective through a plan of arrangement according to the Business Corporation Act (Ontario). This validation came during a special shareholders meeting that took place on Jan. 22, where the majority of shareholders agreed to the acquisition.
According to Businesswire, the completion of the arrangement requires the validation of the majority of the votes cast at the Meeting by proxy or in person of the Firm’s Shareholders, excluding the votes of persons whose votes must be excluded in accordance with Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions, as well as a minimum of two-thirds of the votes cast at the meeting by proxy or in person by Firm’s Shareholders.
The validation by the shareholders represents a step closer to the expected conclusion of the purchase deal. In fact, 99.999% of the total number of votes supported the purchase, and only 0.001% were against it. However, the purchase is still subject to validation by the minister of Canadian heritage and the Ontario Superior Court of Justice. Additionally, extra closing terms have to be fulfilled in order for the deal to be concluded, and if everything goes smoothly, the purchase will be concluded during the early period of February.
For Better Collective, this agreement will help it officially become the market leader for the South American region and improve its leadership in North America. To fund the acquisition, the firm will utilize stocks for 65% and 35% of the money. After the acquisition is completed, the firm will revise its financial targets for 2023 up to 2027.
Playmaker Capital, headquartered in Toronto, has its stake recorded on the OTCQX in the US and the TSX Venture Exchange in Canada. Its sports media brands include Yardbarker, Futbolsites.net, and the Nation Network, all of which will be acquired by Better Collective. The company recognizes the common good from improved scale and higher levels of investment in technology, product, and marketing, and it projects to increase its audience of sports enthusiasts in America from the acquisition.
According to the terms of the transaction, common stockholders of Playmaker will receive a payment of CA$0.70 per share. Additionally, JPG Investments and Relay Investments, the two biggest shareholders of Playmaker own a mixed 24% of stakes and will invest part of their Playmaker stakes for the shares of Better.
Furthermore, Better Collective is also purchasing Playmaker HQ, the US-based sports media firm.