Mobile Streams signs NFT contract with EFC

RNS Number : 1528I

Mobile Streams plc

01 December 2022

 

1 December 2022

Mobile Streams plc

("MOS" or "the Company")

Mobile Streams signs NFT contract with Extreme Fighting Championship (EFC)

Mobile Streams plc, the AIM quoted mobile content and data intelligence company, is delighted to announce it has signed a 5-year contract to be the exclusive provider of all NFT content for the Extreme Fighting Championship (EFC). www.efcworldwide.com

Headquartered in Johannesburg, South Africa, EFC is a sport entertainment phenomenon, which has captured the attention of passionate and loyal fans throughout the world. Over 200 of the world's best MMA athletes, who are exclusively contracted by EFC, to determine the ultimate fighting champions. EFC is extensively broadcast on TV across Sub-Saharan Africa on the country's most popular TV channels. UFC is exclusively broadcast on SuperSport across Africa (on average 6 hours a day), plus on many more of the most popular free-to-air and pay-TV channels on the continent, giving EFC a much larger potential audience in Africa than UFC has. Over 200 million Africans are expected to watch EFC in the next 12 months, making EFC one of the most watched sport and entertainment events on the continent. 

MOS will produce a large range of NFTs for EFC, in helping to engage and reward fans as well as reaching new ones. They will be sold via our primary marketplace on HeroesNFTclub that MOS is creating for EFC and that can also be accessed via other digital touch points, such as the EFC website and social media accounts. Additionally, the NFTs will be sold via MOS's telco contracts globally, its LiveScores sites and Apps and the MOSMetaverse website, proving access to fans globally.

This announcement expands the MOS "HeroesNFTclub" brand into the combat sports sector, which is part of the Company strategy to increase reach and strength of the brand awareness across different vertical sporting revenue streams. The Company is actively engaged in further NFT deals and announcements on these will be made when appropriate.

Mark Epstein, CEO Mobile Streams plc, said: "We are delighted to have signed this contract. The EFC provides Mobile Streams with a globally relevant, exclusive and unique sports partnership opportunity. We can't wait to get started."

Cairo Howarth, President EFC said:" We are delighted be signing with Mobile Streams for our NFTs. We think the partnership has huge potential. Not only to drive significant revenue but also to produce a new generation of digital merchandise that drives engagement, participation and rewards fans. We look forward to a long and successful partnership."

Non-Fungible Tokens ("NFTs") are digital data stored in a blockchain, a form of distributed ledger. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded. In effect the Company's products are digital merchandise. An example would be a sports trading card - NFTs produced under this contract are one-of-a-kind trading cards. If you traded it for a different card, you'd have something completely different. The global NFT market is expected to reach $122 billion in size by 2028, with more than $17 billion in sales in 2021 and $35 Billion expected to be generated this year. The fastest growing sector within this space is the sports NFT market and the Company believes this contract win further demonstrates that the business is now very well positioned within this sector.

Under the terms of the Agreement, the parties have agreed a target revenue figure over the 5 years of the contract of which MOS's share is approximately USD 3.7 million. This net figure, which is a target agreed between MOS and EFC and not a forecast or guidance as to what will actually be achieved, is the estimated revenue MOS will receive after any revenue-share payments have been made. Revenue from the NFTs will come from both the sale price of the NFT and a royalty generated from them each time they are traded in perpetuity, these royalties are typically 5-10% of the sale price. The Agreement also requires MOS to make an initial cash payment to EFC, which is well covered by the Group's existing cash and cash equivalents, and if certain revenue targets in a year are met then a minimum revenue guarantee would exist for the next year. However, in the context of the revenue that MOS would receive for this to be activated, the Board considers these would be modest and achievable within the next year's revenue that MOS expects to receive from the contract. The Board further believes that, noting the expected recurring nature of NFT revenues, it estimates that its maximum net exposure, under all but the most extreme worst case commercial assumptions, including the upfront cash fee, would be approximately USD75,000 over the first 3 years of the Agreement. The Agreement contains a 3-year break clause and standard terms for termination.

About Mobile Streams

For further information, please contact: Mobile Streams plc

Nigel Burton, Adviser

[phone]

  www.mobilestreams.com

Beaumont Cornish (Nominated Adviser)

 James Biddle and Roland Cornish

[phone]

Peterhouse Capital Limited (Broker)

 Lucy Williams and Duncan Vasey

 [phone]

Mobile Streams delivers world class gaming content to a global audience, through its LiveScores and mobilegaming.com platforms, our long-standing carrier relationships in countries including India, Argentina and Mexico, and partnership with IGS (International Gaming Systems). Our Streams data insight, intelligence and visualisation services and marketing optimisation tools support the content business, as well as serving enterprise level bespoke clients and the Streams SaaS ("Software as a Service") self-service platform. Our strategy is to deliver next-generation content including gaming, Esports and related NFTs to a global audience.

 

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