Mobile Streams signs NFT contract with LPGA golfer

RNS Number : 2232G

Mobile Streams plc

14 November 2022

 

14th November 2022

Mobile Streams plc

("MOS" or "the Company")

Mobile Streams signs NFT contract with LPGA golfer Gaby Lopez

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 NFTs for LPGA golfer Gaby Lopez.

The current leading female golfer in Mexico and one of the best players in the world Gaby Lopez is known globally and carried her nation's flag in the 2020 Tokyo Olympics. Her rookie year was in 2016 and the year to date is her most successful yet. She has 3 career victories on the LPGA tour and plays in tournaments all over the world. The LPGA named her the Latin American Golfer of the Decade. Gaby has been the best female player 7 years in a row from the Bravo river in México to the Patagonia in Argentina.

MOS will produce a large range of NFTs for Gaby Lopez. These NFTs will help to engage and reward her fans as well as reaching new ones. They will be sold via a primary marketplace on HeroesNFTclub that MOS is creating for her and can also be accessed via digital touch points, such as the Gaby Lopez 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. They will be marketed across the world to fans globally.

This announcement expands the the MOS "HeroesNFTclub" brand into the Golf sector.  This is part of a strategy to increase reach and the strength of the brand 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:  "It's a privilege to have signed Gaby Lopez to HeroesNFTClub. Gaby is an amazing and hugely popular golfer, known not only in Mexico but all over the world.  We can't wait  to produce some great products together that her fans will love."

Gaby Lopez said: "I am delighted be partnering with Mobile Streams for my NFTs. I look forward to the partnership producing a new generation of digital merchandise for my fans that drives engagement, participation and rewards my amazing supporters. I look forward to a long and successful partnership."

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 3.6 million. This net figure, which is a target agreed between MOS and Gaby Lopez 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 Gaby Lopez, 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 from 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 USD30,000 over the first 3 years of the Agreement. The Agreement contains a 3-year break clause and standard terms for termination.

Furthermore, under the Agreement MOS will issue Gaby Lopez with USD10,000 of Ordinary Shares at the 3 month VWAP prior to the share issue; such issue to proceed once the Directors have adequate shareholder authorities to issue additional shares at a Meeting of Shareholders to be convened in due course. It is intended there will also be a one year hard lock-in on the shares as there will also be with the shares to be issued to Necaxa as announced on 10 November 2022.

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 USD122 billion in size by 2028, with more than USD17 billion in sales in 2021 and USD35 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.

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]

About Mobile Streams

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 through our https://heroesnftclub.com/ site.

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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