YDX Innovation Divests Gaming Assets

Rhea-AI Summary

YDX Innovation Corp (TSXV:YDX)(OTC PINK:YDRMF) announced an agreement to transfer BEAT Gaming's intellectual property to its founders, Vasilios Elafros and Anthony Truong. This decision aligns with YDX's imminent merger with Amuka Esports, aiming to focus on new initiatives like their Gaming Academy and Virtual Reality content. In exchange, YDX will be released from a $606,000 cash obligation under a previous agreement. Both companies expressed optimism for future collaboration and best wishes for each other as they advance in the esports industry.

Positive

• YDX divests BEAT Gaming assets, focusing on core initiatives.
• Merger with Amuka Esports expected to streamline operations.
• Potential future collaboration between YDX and BEAT Gaming.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / November 27, 2020 / YDX Innovation Corp (TSXV:YDX)(OTC PINK:YDRMF)(FSE:A2PB03) ("YDX" or the "Company"), announces that it has entered into an agreement of purchase and sale ("Agreement") with the founders of BEAT Gaming, Vasilios Elafros and Anthony Truong (the "Purchasers"), for the transfer of BEAT Gaming intellectual property from YDX to the Purchasers.

"With the imminent merger with Amuka Esports, we've made the difficult decision to mutually part ways with BEAT esports," said Daniel Japiassu, CEO of the Company. "Although we think highly of the BEAT brand, we had to make the difficult decision to divest certain assets in order to facilitate investment in the Company's upcoming initiatives, such as our Gaming Academy and developing direct to consumers Virtual Reality content. We are sure Bill and Anthony will continue to do great things with BEAT, and hopefully there will other opportunities for both companies to collaborate in the future."

"We are looking forward to our future operations in esports and we wish the YDX team all the best. We're excited for 2021 and hope both companies can collaborate in the future as well." said Bill Elafros, CEO of BEAT esports

Under the terms of the Agreement, the Purchasers will be assigned all intellectual property related to BEAT Gaming, including the brands and social media channels, in exchange for releasing YDX from the obligation to pay the remaining cash balance ($606,000 after a payment of $80,000 in 60 days from the closing) due under the share purchase agreement between the parties signed in April 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.

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; The 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.

View source version on accesswire.com:
https://www.accesswire.com/618638/YDX-Innovation-Divests-Gaming-Assets

FAQ

What is the significance of YDX's agreement to transfer BEAT Gaming intellectual property?

The agreement allows YDX to focus on its merger with Amuka Esports and new projects while releasing it from financial obligations.

What financial obligation does YDX avoid by divesting BEAT Gaming assets?

YDX avoids a remaining cash balance obligation of $606,000 under a previous agreement.

How does the merger with Amuka Esports affect YDX's business strategy?

The merger enables YDX to streamline operations and enhance its focus on esports and virtual reality initiatives.

What future opportunities exist for YDX and BEAT Gaming after the asset transfer?

Both companies expressed a desire for potential future collaborations despite the asset transfer.