Swarmio Media Announces an Initial Strategic Investment of USD $1 Million Convertible Note from Apelby Communications at a Cap Price of USD $30 Million Market Capitalization
The investment will support the launch of Swarmio's proprietary gaming and esports platform in new markets including Europe, Africa, and LATAM, and may be followed by additional investments from Apelby
TORONTO, Sept. 15, 2022 /CNW/ - Swarmio Media Holdings Inc. (CSE: SWRM) (OTC: SWMIF) (GR: U5U) ('Swarmio' or 'the Company'), a technology company focused on the global deployment of its proprietary subscription-based gaming and esports platform, announces it has received a strategic initial investment commitment (the "Investment") from the investment arm of Apelby Communications ("Apelby"), a global telecommunications services provider, for gross proceeds of USD $1,000,000.
Michal Kutzendorfer, Chairman and Founder of Apelby commented: "We view this as not just an investment, but as the beginning of a mutually beneficial partnership, which will allow Apelby and our telco partners to tap into the massive $200 billion global gaming market. More than a third of the global population is already online gaming but there is still a lot of growth to come as smart phones and internet connectivity continue to become more available. We're grateful for this opportunity to provide extra value to our telco clients and their customers who love gaming."
Vijai Karthigesu, Swarmio's CEO, commented: "We are very pleased to have the support of a leading telecom service provider like Apelby Communications as we continue our current growth trajectory. We look forward to working closely with Apelby as we continue to launch the Ember platform in new, untapped markets around the world."
In return for the funds advanced and to be advanced, Swarmio will issue an unsecured convertible note having a 1-year term from the date of issue and bearing interest at 10% per annum (the "Convertible Note"). USD $500,000 of this amount has been advanced to the Company and the remainder will be advanced at the beginning of 2023, provided that no qualifying financing or sale transaction has occurred first. In the event Swarmio completes an equity financing with gross proceeds of at least USD $5,000,000 during the term of each Convertible Note, the principal and interest outstanding will convert to common shares of Swarmio at the lower of (i) a 20% discount to the price being paid by the investors in such equity financing; or (ii) a price reflecting a US$30,000,000 market capitalization for Swarmio. If Swarmio is party to a sale transaction during the term of the Convertible Notes, the holder of the Convertible Note shall have the option of converting the principal and interest into common shares of Swarmio at a price reflecting a US$30,000,000 market capitalization of Swarmio.
The Company intends to use the proceeds of the Investment for general working capital purposes, and to fund the launch of its proprietary gaming and esports platform, Ember, into new regions including Europe, Africa, and Latin America, where Apelby provides wholesale telecommunications services to multiple telco clients. Apelby plans to offer Ember to its telco clients, enabling them to reach and monetize their gamer user base. The Ember platform allows gamers to gain access to an ultra-low-latency playing experience, competitive challenges and tournaments, exclusive gaming content, managed communities, gamification and points system, online store (Swarmio Store), and gamer e-wallet (Swarmio Pay).
Swarmio shares acquired on conversion will be subject to a four-month plus one day hold period from the date of advance. The completion of the private placement and payment of any commission and fees remains subject to the receipt of all necessary approvals, including the approval by the Canadian Securities Exchange (the "CSE".)
Apelby is a global ICT provider of a wide range of telecommunication services, including carrier-to-carrier voice and outsourcing services for retail customers, technology and ICT solutions. Since establishment in 2005, Apelby has managed to grow in both revenue and key business products while being able to expand its presence into important regions and acquire a significant customer portfolio. To learn more about Apelby Communications, please visit their website (https://www.apelby.com/).
Swarmio Media (CSE: SWRM; OTC: SWMIF; GR: U5U) is a technology company focused on deploying its proprietary end-to-end gaming and esports platform, Ember, which enables telcos to monetize their gaming customers. Swarmio has engaged with several telcos that have launched Ember as an add-on service, allowing subscribers to access tournaments, engage in a localized gaming community, challenge friends and influencers, and earn points that can be used to purchase gaming content. Ember is powered by Swarmio's patented Latency-Optimized Edge Cloud ('LEC') technology, which reduces lag and allows gamers to enjoy an optimized gaming experience.
Swarmio's fully managed, plug-and-play Ember platform can be quickly and seamlessly integrated with major telco operations, allowing telcos to engage and monetize gaming subscribers and gain immediate and meaningful access to the US$200 billion gaming market.
Ember provides a proprietary digital hub for gaming communities, allowing gamers to access an ultra-low-latency playing experience, competitive challenges and tournaments, exclusive gaming content, managed communities, gamification and points system, online store (Swarmio Store), gamer e-wallet (Swarmio Pay), and customized digital content.
For more information please visit:
Swarmio Investor Website (https://swarmio.media/investors)
Swarmio on LinkedIn (https://www.linkedin.com/company/swarmiomedia)
Swarmio on Twitter (https://twitter.com/SwarmioMedia)
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation: statements about the Company's growth, the Company's use of proceeds, the potential for the second advance of funds to occur, the Company's ability to capitalize on the major global opportunity in the gaming and esports market, anticipated benefits to the Company's partners and their customers from using the Company's products, ongoing discussions with potential new customers or partners and the possibility that such discussions may result in additional contracts or revenue for the Company, the Company's future plans, its goals and expectations, including but not limited to, the Company's continuing ability to enter into agreements to deploy its products with international telecommunications companies and game publishers and its ability to monetize these agreements through generating SaaS-based revenues are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the risks identified in the Company's latest management's discussion and analysis on www.sedar.com and its long-form prospectus dated November 10, 2021 (which can be accessed through the Company's profile on www.sedar.com). Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the respective companies undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
SOURCE Swarmio Media Holdings Inc.
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