FansUnite Reports Fourth Quarter and Full Year 2021 Financial Results and Announces Intention to Commence Normal Course Issuer Bid

By Louise Sommerfeld On May 6, 2022

Full year 2021 revenue of C$5.60 million (2020: C$1.55 million), an increase of 260% over full year 2020
Fourth quarter 2021 revenue of C$2.98 million (2020: C$0.76 million), an increase of 294% over fourth quarter 2020
Full year 2021 unaudited consolidated revenue of C$22.3 million, inclusive of full year revenue generated from the recently acquired American Affiliate
Continued growth into Q1 2022 with over $9.0 million of unaudited revenue

FansUnite Entertainment Inc. (CNSX: FANS) (OTCQX: FUNFF) reported financial results for the fourth quarter and full year ended December 31, 2021.

Full Year and Fourth Quarter 2021 Financial Highlights:

Total revenue of C$5.60 million in full year 2021, as compared to C$1.56 million in full year 2020, an increase of 260%;
Total revenue of C$2.98 million in the fourth quarter of 2021, as compared to C$0.76 million in the fourth quarter of 2020, an increase of 294%;
Net loss for the year of C$17.0 million which includes non-cash expenses of C$7.59 million, as compared to C$13.5 million in full year 2020, which included non-cash expenses of C$9.10 million;
The Company ended the quarter with cash and cash equivalents of C$13.97 million, as compared to C$4.43 million in 2020, an increase of 215% from the same period last year.

Full Year 2021 Operational Highlights:

Completed two oversubscribed brokered financings for approximately $38.0 million in order to expand operations and pursue M&A opportunities;
Signed new white-label partner Money Line Sports Inc. for the Chameleon gaming platform;
The Company listed on the OTCQX, the highest-tier of OTC markets;
Received both B2C and B2B licenses from the UK Gambling Commission, enabling the Company to operate as a technology provider and an operator in the UK online gambling market;
Continued to expand the leadership team with the appointment of industry veterans Anna Smith as Head of Compliance, Michael Lee as VP of Gaming, Chris Grove as CEO of American Affiliate, Sean Hurley as VP of Strategy of American Affiliate, Pearl Gallagher as CLO of American Affiliate, Denis Williams as Head of Payments, Jai Maw as President of Betting Hero, and Jeremy Jakary as SVP of Strategy of Betting Hero;
Signed multiple data provider partnerships for the Chameleon iGaming Platform including Pariplay, SportsIQ, Pythia and Algosport to further enhance the platforms capabilities;
Shortlisted for numerous awards throughout the year such as ‘Full-Service Platform Provider’, ‘Sportsbook Platform Provider’ and ‘Rising-Star’;
Appointed KPMG LLP (“KPMG”) as the Company’s auditor;
Completed the acquisition of American Affiliate, a leading omni-channel affiliate company focused on customer acquisition in the regulated US market.

Our annual figures illustrate that FansUnite’s global gaming strategy continues to be a success and represents a major step forward for the Company. In 2021, our focus was on laying operational foundations and ensuring we secured the right amount of capital to not only grow our revenue and operations, but also to see us through any market downturns. The additional capital allowed us to complete our third and largest acquisition of American Affiliate, which has outperformed our expectations since finalizing the deal at the end of 2021. In 2022, FansUnite intends to secure more B2B deals, both for our Chameleon iGaming platform and our RNG casino games, while expanding our footprint in the US affiliate market. We are very excited to build on this success with a focus on continued revenue growth, international and domestic expansion, and execution.
Scott Burton, CEO of FansUnite

First Quarter 2022 Unaudited Financial Highlights & Subsequent Events:

The Company continued its momentum in the first quarter of 2022 with unaudited revenue figures of over $9.0 million;
Granted license to become a fully registered gaming related supplier in Ontario;
American Affiliate entered Louisiana’s online sports betting market;
American Affiliate was approved for customer acquisition services in Maryland’s sports betting market;
The Company was shortlisted for five 2022 EGR North America Awards;
Signed a MOU with Welsh bookmaker Dragon Bet.

The Company’s consolidated financial statements for the year ending December 31, 2021 along with its MD&A are available under the Company’s profile on SEDAR at www.sedar.com.

Normal Course Issuer Bid

FansUnite intends to file with the Canadian Securities Exchange (“CSE”) a notice of intention to commence a normal course issuer bid (“NCIB”) for its common shares (“Shares”). If accepted by the CSE, the Company would be permitted under the NCIB to purchase for cancellation, through the facilities of the CSE and all available Canadian markets and alternative trading platforms, up to 5% of the issued and outstanding Shares for a period of 12 months after the NCIB commences. The exact amount of Shares subject to the NCIB will be determined on the date of acceptance of the notice of intention by the CSE.

All Shares purchased by the Company under the NCIB will be purchased at prevailing market prices in accordance with the rules and policies of the CSE and applicable securities laws. The actual number of Shares that may be purchased, and the timing of any such purchases, will be determined by the Company, subject to the applicable terms and limitations of the NCIB (including any automatic share purchase plan adopted in connection therewith). All Shares acquired by the Company under the NCIB will be canceled.

Although the Company has a present intention to acquire Shares pursuant to the NCIB, the Company will not be obligated to make any purchases and purchases may be suspended by the Company at any time. The Company reserves the right to terminate the NCIB earlier if it feels it is appropriate to do so.

In connection with the NCIB, the Company intends to enter into an automatic share purchase plan with its designated broker to allow for purchases of its Shares during certain predetermined black-out periods, subject to parameters as to price and number of Shares. Outside of these predetermined black-out periods, Shares will be purchased in accordance with management’s discretion, subject to applicable law.

The Company proposes to commence the NCIB because it believes that the market price of the Shares may not, from time to time, fully reflect their value and accordingly, the purchase of the Shares would be in the best interest of the Company and an attractive and appropriate use of available funds.

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