Gegs Capital Enters Business Combination with UMG Media.
M2 EQUITYBITES-March 19, 2019-Gegs Capital Enters Business Combination with UMG Media
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19 March 2019 - Canada-based acquisition company Gegs Capital Corp. (TSX Venture: GEGS.P) has entered into a letter of intent with Canada-based esports company UMG Media Corp. whereby Gegs will acquire all of the issued and outstanding common shares of UMG in an arm's length transaction, the company said.
The transaction will be undertaken by means of a plan of arrangement.
Following completion of the transaction, Gegs will issue approximately 144,724,209 common shares in the capital of Gegs to UMG shareholders, for aggregate deemed consideration of CDN 27.5m.
UMG shareholders will receive 9.0801 Gegs Shares for each UMG share they currently hold.
The company and UMG have also agreed that as a condition to the completion of the transaction, UMG will complete a financing of no less than CDN 500,000.
This financing may be done as a private placement of UMG securities or through the exercise of currently outstanding UMG convertible securities.
Upon completion of the transaction the combined company will be renamed UMG Media Ltd.
UMG, a BC incorporated company, is a premier eSports company in North America, offering gaming entertainment, live events and online play.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Mar 19, 2019|
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