Leaf Mobile Update

RNS Number : 5368O

Blue Star Capital plc

10 February 2021

 

10 February 2021

Blue Star Capital plc

("Blue Star" or the "Company")

Leaf Mobile Update

Blue Star Capital plc (AIM: BLU), the investing company with a focus on esports, payments, technology and its applications within media and gaming, is pleased to provide the following update regarding its investee company Leaf Mobile Inc. ("Leaf").

Leaf (TSX.V: LEAF), a company in which Blue Star holds an investment, has reported that it has completed its acquisition of 100% of East Side Games Inc. ("ESG") for approximately C$159 million. The consideration consisted of $19 million in cash and 444,444,444 common shares in Leaf at a price of C$0.225 per share. The remainder of the consideration is contingent upon Leaf achieving certain milestones.

Further, Leaf recently completed a public offering for shares raising gross proceeds of C$23 million. Following which, Leaf received approval to list Leaf Shares for trading on the Toronto Stock Exchange (TSX).  As a result, the Leaf Shares will be delisted from the TSX Venture Exchange (TSXV). Trading of the Leaf Shares on the TSXV will remain suspended until its delisting. Trading of the Leaf Shares under the symbol "LEAF" will commence on the TSX at the open of markets on 10 February 2021. 

Blue Star's investment in Leaf was made in April 2020 purchasing 625,000 at a price of C$0.16 per share. The share price for Leaf is currently trading at approximately C$0.225 per share valuing Blue Star's holding in Leaf at approximately C$140,625. Following Leaf's admission of shares to trading on the TSX, Blue Star's holding will represent approximately 0.08% of Leaf's issued share capital.

Derek Lew, CEO of Blue Star, commented : "We would like to congratulate Leaf on the completion of its acquisition of East Side Games Inc. and their subsequent approval to move to the TSX. Following the acquisition, Leaf will be one of the leading, publicly traded mobile game companies in Canada, its progress highlights Blue Star's ability to identify promising investments with potential for growth. It is an exciting time for Leaf, and a significant step forward in its strategic development. We look forward to supporting them on their journey."

About East Side Games  

East Side Games is a private British Columbia company based in Vancouver, British Columbia. It is a leading publisher and developer of mobile games. Founded in 2011 by game industry veterans, it has created chart topping hits for top Hollywood brands as well as Canadian superstars, The Trailer Park Boys. In 2020, East Side Games was recognized with numerous awards such as one of the "Top 50 Mobile Game Makers 2020" by pocketgamer.biz, as one of Canada's top small and medium employers, as well as one of Canada's fastest growing companies.

About Leaf

Leaf Mobile Inc. (TSX.V: LEAF) is a leading creator of counterculture mobile games. Headquartered in Vancouver, with a premier development studio, LDRLY, based in Nanaimo, British Columbia, the Company is highly skilled in intellectual property, mobile game development, marketing and publishing. Leaf's culture is anchored in creativity, data insights and execution, delivering highly engaging games that produce enduring player enjoyment. With over a decade of experience in game development and marketing, Leaf has consistently delivered high-grossing original and licensed IP titles that include Cheech & Chong Bud Farm, Bud Farm Idle Tycoon, Bud Farm Grass Roots and Bud Farm 420. Our game titles are available worldwide on the App Store and Google Play. Leaf leverages successes in platform, IP, marketing, development and data analysis to maximize value for our global network of constituents, from players to talent to shareholders and beyond.

For further information please contact:

Blue Star Capital plc	[phone]
Derek Lew
Cairn Financial Advisers LLP	[phone]
(Nominated Adviser)
Jo Turner / Liam Murray / Mark Rogers
S tanford Capital Partners Limited (Broker) Patrick Claridge / John Howes / Bob Pountney	[phone]

 

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