Correction and Update: Golden Matrix Exercises Option to Acquire Remaining Interest in RKings Competitions

Rhea-AI Summary

Golden Matrix Group (NASDAQ: GMGI) announced the acquisition of the remaining 20% stake in RKings Competitions, Ltd., using 165,444 restricted shares as compensation. This move allows GMGI to fully control a scalable B2C business expected to grow in regulated markets, including Mexico. CEO Brian Goodman highlighted the potential expansion into Latin America and the launch of GMGI Assets, which aims to enhance revenue through auto tournament offerings. The acquisition is pending certain final requirements.

Positive

• Acquisition of 20% stake in RKings enhances market position and scalability.
• Expected revenue growth from RKings in regulated markets, including Mexico.
• Launch of GMGI Assets anticipated to boost overall financial results.

Negative

• None.

This press release corrects, replaces and entirely supersedes a prior version published on November 4, 2022

LAS VEGAS, NV / ACCESSWIRE / November 9, 2022 / Golden Matrix Group Inc. (NASDAQ:GMGI)("GMGI", "Golden Matrix" or the "Company"), a developer and licensor of online gaming platforms, systems and gaming content, today announced it had exercised its Buyout Right to acquire the remaining 20% interest in RKings Competitions, Ltd. ("RKings") in consideration for a total of 165,444 restricted shares of GMGI's common stock payable to the two minority owners of RKings.

Golden Matrix CEO Brian Goodman said, "We are pleased to have exercised our Buyout Right to acquire 100% of this exciting and successful B2C business, which is highly scalable and expected to grow quickly in multiple regulated jurisdictions. In addition to Great Britain, we expect RKings' tournament platform to be popular and well-received by participants in Mexico, where it is already permitted to operate; and we believe it can expand into other Latin American markets over the next couple years."

Mr. Goodman also said the Company had also recently launched a complementary business, GMGI Assets, which is expected to serve to enhance the revenue stream and profit, being generated by the RKings division and stated, "As an example, and in some instances, the tournament winner of an expensive automobile may choose to take a predetermined cash option in lieu of the car. When this occurs, GMGI Assets will take possession of the car and resell it. Each transaction has a built-in positive margin, and we expect this business to make significant contributions to GMGI's overall financial results as the number of auto tournament offerings continues to grow in Great Britain, as well as additional jurisdictions in the future."

The closing of the acquisition of the remaining 20% interest in RKings is subject to the delivery by the sellers of certain required items, including stock powers and certifications.

More information regarding the transaction discussed above is disclosed in the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on November 2, 2022.

About Golden Matrix Group

Golden Matrix Group, based in Las Vegas NV, is an established gaming technology company that develops and owns online gaming IP and builds configurable and scalable white-label B2B gaming platforms for its international customers, located primarily in the Asia Pacific region. The gaming IP includes tools for marketing, acquisition, retention and monetization of users. The Company's platform can be accessed through both desktop and mobile applications. Additionally, Golden Matrix generates revenues in Great Britain from RKings Competitions' scalable B2C tournament platform, and has recently launched a licensed proprietary B2C online casino in Mexico.

Forward-Looking Statements

Certain statements made in this press release contain forward-looking information within the meaning of applicable securities laws, including within the meaning of the Private Securities Litigation Reform Act of 1995 ("forward-looking statements"). These forward-looking statements represent the Company's current expectations or beliefs concerning future events and can generally be identified using statements that include words such as "estimate," "expects," "project," "believe," "anticipate," "intend," "plan," "foresee," "forecast," "likely," "will," "target" or similar words or phrases. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company's control which could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, but not limited to, the impact of the COVID-19 pandemic on the Company; the need for additional financing, the terms of such financing and the availability of such financing; the ability of the Company and/or its subsidiaries to obtain additional gaming licenses; the ability of the Company to manage growth; the Company's ability to complete acquisitions and the available funding for such acquisitions; disruptions caused by acquisitions; dilution caused by fund raising, the conversion of outstanding preferred stock and/or acquisitions; the Company's ability to maintain the listing of its common stock on the Nasdaq Capital Market; the Company's expectations for future growth, revenues, and profitability; the Company's expectations regarding future plans and timing thereof; the Company's reliance on its management; the fact that the Company's chief executive officer has voting control over the Company; related party relationships; the potential effect of economic downturns, recessions, increases in interest rates and inflation, and market conditions, decreases in discretionary spending and therefore demand for our products, and increases in the cost of capital, related thereto, among other affects thereof, on the Company's operations and prospects; the Company's ability to protect proprietary information; the ability of the Company to compete in its market; the Company's lack of effective internal controls; dilution caused by efforts to obtain additional financing; the effect of current and future regulation, the Company's ability to comply with regulations and potential penalties in the event it fails to comply with such regulations and changes in the enforcement and interpretation of existing laws and regulations and the adoption of new laws and regulations that may unfavorably impact our business; the risks associated with gaming fraud, user cheating and cyber-attacks; risks associated with systems failures and failures of technology and infrastructure on which the Company's programs rely; foreign exchange and currency risks; the outcome of contingencies, including legal proceedings in the normal course of business; the ability to compete against existing and new competitors; the ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company's products, including potential recessions and global economic slowdowns. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this release are reasonable, we provide no assurance that these plans, intentions or expectations will be achieved. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. More information on potential factors that could affect the Company's financial results is included from time to time in the "Special Note Regarding Forward-Looking Statements," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's periodic and current filings with the SEC, including the Form 10-Qs and Form 10-Ks, including, but not limited to, the Company's Transition Report on Form 10-K for the nine month transition period ended October 31, 2021 and its Quarterly Report on Form 10-Q for the quarter ended July 31, 2022. These reports are filed with the SEC and available at www.sec.gov. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on behalf of the Company are expressly qualified in their entirety by the cautionary statements referenced above. Other unknown or unpredictable factors also could have material adverse effects on the Company's future results. The forward-looking statements included in this press release are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and takes no obligation to update or correct information prepared by third parties that are not paid for by the Company. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

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Golden Matrix Group
Contact: Scott Yan
Email: info@goldenmatrix.com

SOURCE: Golden Matrix Group Inc.

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FAQ

What is the significance of GMGI acquiring RKings Competitions?

The acquisition allows GMGI to fully control RKings, enhancing its market position in the online gaming sector.

How much did GMGI pay for the remaining interest in RKings?

GMGI compensated the minority owners of RKings with a total of 165,444 restricted shares.

What markets are expected to benefit from the RKings acquisition?

The acquisition is expected to drive growth in regulated markets, particularly in Great Britain and Mexico.

What is GMGI Assets and how does it relate to RKings?

GMGI Assets is a new business that aims to enhance revenue by managing tournament prizes, such as resale of vehicles won in contests.

When was the acquisition of RKings announced?

The acquisition was announced on November 9, 2022, and corrects a previous version from November 4, 2022.