MONTRÉAL: ZeU Technologies Inc. has entered into an arm’s length binding letter of intent to acquire all outstanding securities of Money Line Sports Inc., an Ontario Corporation and licensed platform and provider of streaming sports content allowing live wagers.
Founded in 2019 and launching in 2021, Money Line Sports is uniquely positioned in the European market to provide premium streaming sports content and wagering for sports bettors in legal jurisdictions.
Money Line’s sports media platforms provide an enhanced experience for its users through original sports live stream content, premium insights, live odds and proprietary betting tools and data. Money Line’s diverse revenue model includes a subscription-based pay-for-view model and a rapidly growing affiliate marketing business focused on customer acquisition for betting operators in Europe and additional jurisdictions as well as sports and casino wagering.
The Agreement provides that ZeU will acquire 100% of the issued and outstanding securities of Money Line, though a wholly-owned subsidiary for consideration of $1.5 million paid in the form of unsecured convertible debentures of ZeU’s subsidiary and the issuance of 1.500 million non-transferable share purchase warrants of ZeU, each entitling the holder to acquire one ZeU share at a price of $0.91 for a period of 24 months from the closing of the transaction.
While the US sports betting market has grown rapidly since the repeal of the Professional and Amateur Sports Protection Act (PASPA) removed a federal ban on online gambling, only 13 states have legalized online gambling at this point.
Many more are expected to follow in the coming years, with the addressable market significantly expanding as a result. Total online sports betting revenues in the US are forecasted to reach $4 billion in 2022 and amount to nearly $40 billion in 2033.
Money Line will become an integral part of ZeU and will continue to operate as a separate business unit with its current management team and employees, led by CEO Frank Dumas.
Money Line will integrate with ZeU’s current organization where relevant to generate efficiencies and additional revenue streams through subscription-based sporting events, wagering and digital transaction fees through the P2P blockchain-based networking.
ZeU is a forward-thinking Canadian technology company that has developed a state-of-the-art blockchain protocol, providing the foundation for the next generation of encrypted and distributed networks.