Company Set for New Chapter with Strengthened
Financial Position and Continued Commitment to Esports
TORONTO, Nov. 8, 2023
/CNW/ - OverActive Media (TSXV: OAM) (OTCQB: OAMCF) ("OverActive"
or the "Company"), a leading sports, media, and entertainment
company for today's generation of fans, today announced that it has
entered into a final agreement with Activision Blizzard regarding
the previously announced termination of its Team Participation
Agreement in the Overwatch League. The agreement allows OverActive
to exit its commitments in the Overwatch League and provides it
with strengthened financial stability. Unless otherwise specified,
all amounts are in Canadian dollars ($).
Under the terms of the agreement, OverActive will receive a
termination payment of $8.26 million
(USD 6 million) from Activision
Blizzard. This payment will be net of approximately $916,000 (USD
666,000) for payments paid in advance by the League to
Toronto Defiant (for a total payment of $7.10 million (USD
5.34M)) and will bolster OverActive's cash position to over
$15 million. This development comes
as OverActive continues to realign its strategic focus and prepare
for the new era of Overwatch esports in 2024 and beyond.
"This strategic restructuring of our league assets marks a new
chapter for OverActive," said Adam
Adamou, Co-Founder and Interim CEO, OverActive Media. "We
extend our deepest thanks to the Overwatch League, its fans, and
the community for their unwavering support. Toronto Defiant has
proudly competed under the League's banner, and we've built
incredible memories together. As we transition into the next phase
of Overwatch esports, we look forward to the opportunities that lie
ahead."
Continued Mr. Adamou, "Our commitment to our teams and esports
is stronger than ever, and we believe this move is a crucial step
to ensuring their continued success. We are eager to share more
about our vision for Toronto Defiant and our plans to return to
Overwatch esports. We expect more information to come on this front
soon."
The agreement with Activision Blizzard signifies an important
strategic realignment for OverActive, allowing the company to
reinvest in its core business and recommit to its primary mission.
The financial implications of the agreement, including the
termination payment, will be reflected in OverActive's
fourth-quarter results.
ABOUT OVERACTIVE MEDIA
OverActive Media (TSXV: OAM) (OTCQB: OAMCF) is
headquartered in Toronto, Ontario,
with operations in Madrid, Spain
and Berlin, Germany. OverActive's
mandate is to build an integrated global company delivering sports,
media and entertainment products for today's generation of fans
with a focus on esports, videogames, content creation and
distribution, culture, and live and online events. OverActive owns
team franchises in professional esports leagues, including (i) the
Overwatch League, operating as the Toronto Defiant, (ii) the Call
of Duty League, operating as the Toronto Ultra, and (iii) the
League of Legends European Championship ("LEC"), operating as the
MAD Lions. OverActive also leads OAM Live, an events arm that
produces both live and online events.
Cautionary Note Regarding
Forward-Looking Information
This press release contains statements which constitute
"forward-looking statements" and "forward-looking information"
within the meaning of applicable securities laws (collectively,
"forward-looking statements"), including statements regarding the
plans, intentions, beliefs and current expectations of OverActive
with respect to future business activities and operating
performance. Forward-looking statements are often identified by the
words "may", "would", "could", "should", "will", "intend", "plan",
"anticipate", "believe", "estimate", "expect" or similar
expressions and includes information regarding the anticipated
financial and operating results of OverActive in the future.
Investors are cautioned that forward-looking statements are not
based on historical facts but instead OverActive management's
expectations, estimates or projections concerning future results or
events based on the opinions, assumptions and estimates of
management considered reasonable at the date the statements are
made. Although OverActive believes that the expectations reflected
in such forward-looking statements are reasonable, such statements
involve risks and uncertainties, and undue reliance should not be
placed thereon, as unknown or unpredictable factors could have
material adverse effects on future results, performance or
achievements of the OverActive. Among the key factors that could
cause actual results to differ materially from those projected in
the forward-looking statements include the following: the potential
impact of OverActive's qualifying transaction on relationships,
including with regulatory bodies, employees, suppliers, customers
and competitors; changes in general economic, business and
political conditions, including changes in the financial markets;
changes in applicable laws and regulations both locally and in
foreign jurisdictions; compliance with extensive government
regulation; the risks and uncertainties associated with foreign
markets; the ability of the Company to continue to execute on its
existing partnerships and business strategy; the ability of the MAD
Lions and Call of Duty Leagues to maintain viewership; the
successful completion of the Company's new venue; and other risk
factors set out in OverActive's annual information form for the
year ended December 31, 2021 and its
other filings with Canadian securities regulators, copies of which
may be found under OverActive's profile at www.sedarplus.ca. These
forward-looking statements may be affected by risks and
uncertainties in the business of OverActive and general market
conditions, including COVID-19.
Should one or more of these risks or uncertainties materialize,
or should assumptions underlying the forward-looking statements
prove incorrect, actual results may vary materially from those
described herein as intended, planned, anticipated, believed,
estimated or expected. Although OverActive has attempted to
identify important risks, uncertainties and factors which could
cause actual results to differ materially, there may be others that
cause results not to be as anticipated, estimated or intended and
such changes could be material. OverActive does not intend and do
not assume any obligation, to update the forward-looking statements
except as otherwise required by applicable law.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE OverActive Media