Capital to Aid in Fueling Company's Leadership Position in Thriving Esports Market
SAN FRANCISCO, CA / ACCESSWIRE / October 21, 2019 / GameWorks, Inc., an esports entertainment company, announced today that it has entered into an agreement with GTA Financecorp Inc. ('GTA') to complete a reverse merger transaction. The agreement would result in the combined entity becoming a reporting issuer in Canada, subject to regulatory approval. GameWorks was founded as a joint venture between Sega, Universal Studios, and DreamWorks with locations throughout the U.S. where fans and guests are able to convene, wager, watch, and dine. GameWorks derives its revenue from multiple revenue streams which include gaming, wagering, food and alcohol sales. With an experienced management team from technology and hospitality backgrounds, Gameworks is positioning itself to become the dominant experiential company in the esports sector.
The GameWorks management team is led by Chairman and CEO Philip N. Kaplan, who previously held C-Level positions at three NASDAQ-listed companies. 'GameWorks and GTA intend to apply to list the common shares of the resulting issuer on the Canadian Securities Exchange (CSE), giving us access to capital to execute our growth strategy and invigorate the Company,' Kaplan said.
'This milestone in the history of GameWorks provides us a platform to continue to fortify our leadership role in the growing esports and entertainment sector. As a leader in esports nationally, this will allow us to continue to emphasize our esports offering, and bring players and spectators the experience they demand in settings that cater to their distinct gaming needs. The Company intends to continue expanding its concept in key strategic regions throughout the U.S. as well as select international markets, including Canada.'
The closing of the reverse triangular merger is subject to a number of conditions, including the completion of a $7.5M USD financing by no later than January 31, 2019, and CSE approval of the transaction. The merger will take place simultaneously with the financing, pursuant to the definitive reverse triangular merger agreement with GTA Financecorp Inc.
About GameWorks, Inc.
GameWorks, Inc. offers a full entertainment and dining experience for millennials, teens and families, from seven locations nationwide, including those in Virginia - Chesapeake, Denver - Northfield/Stapleton, Las Vegas - Town Square, Minneapolis - Mall of America, Cincinnati - Newport on the Levee (Ky.), Chicago - Schaumburg and Seattle - Downtown. Each action-packed location ranges, on average, from between 20-30,000 square feet and features approximately 140 of the most popular arcade and video games.
GameWorks is recognized nationally in the U.S. for its esports emphasis. All venues feature modern, high-tech and high-touch esports lounges. GameWorks created an atmosphere designed to meet the comfort and optimum performance of gamers. Each full-service, premium GameWorks esports lounge is equipped with, on average, 20-40 PCs and consoles and an extensive library of approximately 100 of the most popular, up-to-date video games. Venues host hundreds of tournaments and events, attracting tens of thousands of guests annually, who participate, play socially or are spectators. Other interactive activities, ranging from laser tag, billiards and other special attractions, are offered at various locations. Every location features The Works Kitchen at GameWorks, a new, eclectic, chef-driven restaurant concept that takes a Modern American spin on bar classics.
GameWorks also operates TableTop Tap House, a top-rated restaurant, sports bar and social game hall serving modern American tavern-style food and drinks in San Francisco.
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This press release contains forward-looking statements and forward-looking information (collectively, 'forward looking statements') within the meaning of applicable Canadian and United States securities laws. All statements, other than statements of historical fact, included herein, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Important factors that could cause actual events and results to differ materially from the Company's expectations include those related to legislative risk in Canada and abroad, an inability to source and reach terms with a reasonable counterparty, an inability to raise further or sufficient capital, market fluctuations in prices for securities of delisted companies, and currency risk. Trading in the securities of the Company should be considered highly speculative. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
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SOURCE: Game Works, Inc.
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