Canada’s leading free-to-play mobile game group, East Side Games Group’s studio named East Side Games Inc. (“ESG”), which the Company acquired in February 2021, has achieved revenue milestones previously set under the aforementioned acquisition by Leaf Mobile Inc.
As such, the former shareholders of East Side Games Inc. are to be paid a contingent consideration of CAD$20 million, East Side Games Group told investors this morning.
Back in February 2021, Blue Star Capital announced that its investee company Leaf Mobile Inc, had completed its acquisition of East Side Games for approximately C$159 million.
East Side Games operates as a private British Columbia group based in Vancouver, British Columbia, which publishes and develops mobile games. It has created ‘chart topping hits’ for several top Hollywood brands as well as for the Canadian superstars, The Trailer Park Boys.
Leaf recently completed a public offering raising gross proceeds of $23m, following which it also received approval to list its shares for trading on the Toronto Stock Exchange (TSX).
Commenting at the time, Derek Lew, CEO of Blue Star, said: “We would like to congratulate Leaf on the completion of its acquisition and their subsequent approval to move to the TSX.”
As previously described in a news release on 5 February 2021, the former shareholders of East Side Games Inc. were entitled to contingent consideration if it reached $100 million in gross revenue, on a consolidated basis, in the 12 months ended February 5, 2022, payable within 30 days. This week, the group reported that the revenue milestone had been met.
Blue Star made its investment in Leaf Mobile back in April 2020, purchasing 625,000 at a price of C$0.16 per share. At the time, the share price for Leaf was trading at approximately C$0.225 per share, valuing
Blue Star’s 10% holding in Leaf at approximately C$140,625.