Tue, 01 Dec 2020

VANCOUVER, BC / ACCESSWIRE / November 12 , 2020 / YDX Innovation Corp (TSXV:YDX)(OTC PINK:YDRMF)(FSE:APY1) ('YDX' or the 'Company'), is pleased to announce it has signed a non-binding Letter of Intent ('LOI') to acquire all of the outstanding shares of Northern Esports Academy Inc., DBA 'Shattered Dreams Esports', ('SxD') a Toronto-based esports company that identifies and develops prospective professional esports players and content creators. SxD also builds and manages its own professional esports teams.

Founded in 2018, SxD has been fielding rosters in over 10 game titles including CSGO, Rocket League, Rainbow Six and Fortnite. SxD teams have won several top tournaments in Canada; Toronto Ultra x RedBull AdrenaLAN (2020, Call of Duty), MLSE Leafs Gaming (2020, EA NHL20) and 24h of Le Mans (2020, iRacing). SxD's talented players have over 90,000 followers on various social media platforms including Twitter, Twitch, and Instagram.

SxD's revenues streams are primarily derived from tournament prizes and sponsors. Additional to that, much like top esports teams like FaZe Clan and 100 Thieves, SxD also receives significant revenue from merchandise sales, with a focus on limited edition esports apparel and streetwear.

SxD was co-founded by Chris Lamarucciola, 'We are excited to be able to continue to support and develop some of the top players and content creators both in Canada and abroad. Working with YDX, a pioneer in digital entertainment in this country, will give us the opportunity to properly develop a cohesive ecosystem where players will receive coaching and mentorship to improve and compete at the highest level.' - stated Chris, who will stay on as Team Manager.

'We are creating a powerful esports ecosystem. Shattered Dreams has built an incredible roster of players and content creators that wear the SxD brand with such passion and fandom. Chris has a unique skill set to scout new talent and honor their professional or content creating skills. We're excited to make this move into esports teams and begin competing with the best in the word' stated Daniel Japiassu, CEO of YDX Innovation.

YDX announced an LOI to merge with Amuka Esports on October 15, 2020 and are building on the strategy of rolling-up synergistic esports assets that are connected on a local level. Amuka and SxD have collaborated on numerous initiatives this year including merchandise, tournaments and developmental leagues. This includes the upcoming launch of the rebranded Northern Shield Gaming Academy, a membership-based model, that gives any gamer the chance to work with top coaches, trainers and compete alongside their teams in a closed league. This will then feed into both recreational and professional teams completing the three-tier developmental training system.

'We already run the largest esports arenas and lounges. We've created the largest amateur esports series in Canada with Mount Phenom. We're monetizing all of our content across numerous television and OTT platforms. We have some of the best data and analytical tools through Purple Mage, a great content creator for our talent through Render and now we have the proper team infrastructure to sign and develop esports talent in a way that we couldn't before.' says Ben Feferman, CEO of Amuka Esports, and incoming Chief Gaming Officer of YDX Innovation.

SxD is on track to finish 2020 in an operational break-even position and anticipate profitability and positive cashflow by Q1 of 2021.

Professional esports team valuations have soared over the past year. According to Forbes, TSM and Cloud9 are now worth $400M representing a 166% and 344% YoY increase, respectively. Newzoo's latest estimates of 2020's eSports revenue streams, suggest that the $950.3 million is likely to be made up as follows: sponsorship $584.1 million (up 7.5%), media rights $163.3 million (up 3.3%), publisher fees $108.9 million (down 11.6%), merchandise & tickets $52.5 million (down 50.3%), digital $21.5 million (up 60.9%), and streaming $19.9 million (up 44.9%). According to Influencer Marketing Hub: In 2019, the total prize money for 5288 tournaments was $234,433,656, up 42%.

Transaction Terms

The Letter of Intent states the principal terms on which the parties have agreed to complete the Acquisition. The parties have agreed to negotiate in good faith and execute a definitive agreement (the 'Definitive Agreement'), that will include the terms summarized in the LOI and such other representations, warranties, conditions, covenants, indemnities and terms that are customary for similar transactions. Both parties have agreed to a mutual exclusivity and due diligence period expiring 90 days from the date of the LOI.

As stated in the LOI, YDX Innovation will acquire 100% of the issued and outstanding shares in the capital of SxD ('SxD Shares'), free and clear of all encumbrances, by issuing 350,000 common shares in the capital of the Company ('YDX Shares') and exchanging such YDX Shares, on a pro rata basis, for all of the SxD Shares held by shareholders of SxD.

The obligations of the Parties to close the Transaction will be subject to customary conditions and any other conditions agreed to by the Parties in the Definitive Agreement, including: the Company's satisfactory completion of due diligence; the board of directors of the Company approving the Transaction; the Parties' execution of the Definitive Agreement; the receipt of any applicable regulatory approvals and third-party consents; and there being no material adverse change in the business, results of operations, prospects, condition (financial or otherwise) or assets of SxD. Financials will be included when the definitive agreement is signed.

Closing of the Transaction is subject to approval from the TSX Venture Exchange (the 'TSXV').

About Shattered Dreams Esports

Shattered Dreams Esports - https://sxdesports.ca/ - is a community driven esports organization competing in 10+ different game titles. From its inception SxD has identified up and coming top players / content players and empowered them to take their careers in gaming to the next level.

The team has one several major tournaments in the past year including 24 hours of LeMans (iRacing, 2020), LUG Hockey (NHL, 2020) and Toronto Ultra x RedBull AdrenaLAN (COD,2020)

About YDX Innovation

YDX Innovation Corp. (TSXV: YDX :: www.ydxinnovation.com) is a global leader in the commercialization of immersive new technologies that incorporate virtual reality, augmented reality, esports and gaming. Its core business seeks to monetize through licensing its IP, developing interactive exhibitions and through esports tournaments and content.

Arkave VR Arena - https://sales.arkavevr.com/ - is a proprietary gaming platform that brings location based virtual reality to any location-based event or entertainment centre. Arkave features state-of-the-art free roam technology coupled with a vast library of both in-house and third party games.

YDreams Global - www.ydreamsglobal.com - has developed over 2,000 interactive and immersive experiences for some of the largest global brands including Disney, NBA, Adidas, Cisco, Nokia, Nike, Mercedes-Benz, Coca-Cola, Santander, AB InBev, Qualcomm, Unilever, Fiat and the City of Rio de Janeiro.

BEAT Gaming - www.beat.gl - is an industry leading esports company that has organized internationally recognized events such as the Dota 2, Overwatch and PUBG BEAT Invitational. Since its creation, BEAT has organized over 30 professional and semi-pro esports events, which has reached over 40 million viewers globally.

Purple Mage Advisors - www.purplemage.com - Purple Mage Advisors (PMA) is a research and data analysis firm that specializes in player recruitment and development in the gaming industry. PMA helps esports and gaming companies with industry reports, player recruitment, player training, data analysis and relevant statistical reporting.

RENDER - www.render.gg - Render is a professional video production studio specializing in crafting video content for YouTubers, Streamers, Teams and Brands. Render is highly specialized in gaming content, but also works with a wide variety of digital media.

More Information:

Daniel Japiassu
Director and CEO
dj@ydx.rocks
(604) 704-6466

contact@ydxinnovation.com | www.ydxinnovation.com | www.youtube.com/ydreamsglobal

This news release may contain 'forward-looking statements' within the meaning of applicable Canadian securities laws, including, without limitation: the intention to acquire Amuka Esports; Thew new merged company be an immediate industry leader in delivering esports; that the combined company will be able to have a more streamlined operation workflow to better monetize its existing revenues stream. 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. 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. 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 Company'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 Company'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 Transaction, including: that the Company'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 VR; the inability to bring Virtual Reality to consumers directly and offer expertise in immersive technologies; and that market conditions related to the COVID-19 pandemic may negatively affect the outcome of the business or operations of the Company, including its results and financial condition. Except as required by securities law, the Company does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: YDX Innovation Corp.



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https://www.accesswire.com/616276/YDX-Innovation-Announces-Letter-of-Intent-to-Acquire-Shattered-Dreams-Esports-Teams-SxD

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