Early Warning Report Regarding Tekkorp Holdings LLC

Rhea-AI Summary

FansUnite Entertainment announced a significant share acquisition by Tekkorp Holdings . Through a share purchase agreement dated September 16, 2024, Tekkorp acquired 63,910,838 common shares at $0.0014 per share. On December 27, 2024, 30,890,288 shares were effectively transferred to Tekkorp.

Prior to this transaction, Tekkorp held 15,818,000 common shares and 12,500,000 warrants, representing 7.61% ownership if all warrants were exercised. Post-acquisition, Tekkorp now controls 46,708,288 common shares and 12,500,000 warrants, potentially representing 15.91% ownership if all warrants are exercised.

Positive

• Significant increase in ownership stake from 7.61% to 15.91% (including warrants)
• Strategic investment at $0.0014 per share indicates investor confidence

Negative

• Low share price of $0.0014 indicates potential company valuation concerns
• Large share transfer could lead to increased market volatility

Vancouver, British Columbia--(Newsfile Corp. - December 31, 2024) - This news release is being disseminated as required by National Instrument 62‐103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in connection with the filing of the Early Warning Report regarding the acquisition of securities of FansUnite Entertainment Inc. (the "Company") by Tekkorp Holdings LLC ‎( the "Acquiror").

Pursuant to a share purchase agreement between the Company, the Acquiror, and certain ‎shareholders of the Company (the "Vendors") dated September 16, 2024, the Acquiror ‎purchased 63,910,838 common shares of the Company (the "Common Shares") at a price of $0.0014 per Common Share (the "Purchased Shares"). On December 27, 2024, 30,890,288 Purchased ‎Shares were effectively ‎transferred to Acquiror (the "Share Purchase").‎

Prior to the Share Purchase, the Acquiror held 15,818,000 Common Shares and 12,500,000 common share purchase warrants (the ‎‎"Warrants"). Assuming the exercise of all of the Warrants owned or controlled by the Acquiror ‎prior to their expiry, it would own, control or have direction over, directly or indirectly, 28,318,000 ‎Common Shares representing 7.61% of the issued and outstanding Common Shares.‎

Upon completion of the Share Purchase, the Acquiror holds control or direction over a total of 46,708,288 Common Shares, 12,500,000 ‎Warrants. Assuming the exercise of all of the Warrants owned or controlled by ‎the Acquiror prior to their expiry, it would own, control or have direction over, directly or ‎indirectly, 59,208,288 Common Shares representing 15.91% of the issued and outstanding Common ‎Shares

The 30,890,288 Purchased Shares were obtained by the Acquiror for investment purposes. In the future, the Acquiror may directly or indirectly, acquire additional Common Shares or dispose of such Common Shares subject to a number of factors, including, without limitation, general market and economic conditions and other investment and business opportunities available.

A copy of the Early Warning Report to be filed by the Acquiror will be available on SEDAR+ under the Company's profile on www.sedarplus.ca.

For more information, or to obtain a copy of the Early Warning Report, please contact:

Denis Silva, Counsel
‎Telephone: 604.313.0343
Email: denis.silva@dlapiper.com

This early warning news release is issued under the early warning provisions of Canadian securities legislation, including National Instrument 62-104 - Take-Over Bids and Issuer Bids and National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235701

FAQ

What is the total number of shares acquired by Tekkorp Holdings in FansUnite (FUNFF) on December 27, 2024?

Tekkorp Holdings acquired 30,890,288 shares of FansUnite Entertainment on December 27, 2024.

What is Tekkorp Holdings' total ownership percentage in FansUnite (FUNFF) after the share purchase?

After the share purchase, Tekkorp Holdings would own 15.91% of FansUnite's outstanding shares if all warrants are exercised.

What was the purchase price per share in Tekkorp's acquisition of FUNFF shares?

Tekkorp Holdings acquired the shares at a price of $0.0014 per common share.

How many warrants does Tekkorp Holdings own in FansUnite (FUNFF)?

Tekkorp Holdings owns 12,500,000 common share purchase warrants in FansUnite Entertainment.