HeadsUp reaches an important milestone in the acquisition of Spinola Gaming

CALGARY, Alta., August 16, 2022 /PRNewswire/ – HeadsUp Entertainment International Inc. (OTCPINK: HDUP) has just taken a major step in the acquisition of Spinola Gaming, one of the world’s leading providers of lottery software.

This stage of the Spinola acquisition process is now complete with the purchase of all previous third-party interests in the Spinola group of companies. This step now allows HeadsUp to enter into and finalize the definitive agreements for the full acquisition of Spinola and its related companies. The repurchase of these shares was imperative for HeadsUp to acquire 100% of the company and its assets, which includes licenses to operate in various European countries, Latin America and other regulated markets.

The full acquisition of Spinola and its related assets is an integral part of HeadsUp’s global strategy in the charity, lottery and gaming space, and the acquisition of Spinola will not only allow it to expand into new global markets, but also to execute its existing strategies with its full suite of lottery, instant win and charity fundraising solutions.

Independent assessments by HeadsUp have concluded that the value of the agreements currently in place have the potential to generate more $150 million in revenue with additional leeway with new contracts currently being negotiated. The value of the Spinola acquisition is substantial, with HeadsUp management engaging 2 independent valuations during the due diligence process that took place in $65 million and US$72 million.

Spinola’s current contracts span key market operations in Colombia, Peru, Brazil and other Latin American markets These regions represent the strongest growth for lotteries and one of the biggest opportunities for Spinola/HeadsUp. In addition to Latin AmericaSpinola has new projects scheduled for release in the fourth quarter of 2022 in 6 African countries and a first national lottery product in United Arab Emirates which is about to launch the world’s biggest lottery jackpot across the globe.

The recent acquisition of LotteryHUB in partnership with Spinola Products and Services will now see LotteryHub become the world’s leading global lottery marketplace solution with key partnerships sought for various European countries, Asia Pacific and US-based operations.

The global lottery industry currently generates approx. $300 billion of annual turnover and 95% of these transactions are still carried out in physical points of sale. With the increase in online activity and e-commerce globally, this presents an exceptional growth opportunity as more and more state and national operations move to the online space as a progression natural to their existing business models. The value of online business globally is expected to reach 15-20% in the next few years, representing a potential market share opportunity of approx. $45-60 billion annual online lottery transactions.

HeadsUp is now pleased to begin announcing a significant number of contracts under the Spinola Agreement that represent previously announced revenue and earnings expectations, as well as additional contracts that management has entered into over the past 45 days.

With respect to the corporate finance roadmap and public markets strategy, this transaction is a fundamental step towards the closing of the inverted triangle merger previously announced by management. HeadsUp Entertainment International will now facilitate its requirements to file fully audited financial statements and then file a registration statement with all of the information required by regulators, including the Alberta Securities Commission, to remove the cease trade order and allow the consolidation of these and other assets soon. will be announced by acquisition in a fully reporting vehicle that should have the assets and revenues required to qualify for a full listing on NASDAQ.

The reason for the reverse merger strategy was to minimize the dilution of HDUP’s existing shareholders, which includes the controlling block of shares held by the management team and insiders.

There will be many announcements ahead about individual contracts, product launches, and company earnings. Please also follow the HeadsUp Twitter account @HeadsUpHDUP for additional transaction information.

About HeadsUp Entertainment International Inc.

HeadsUp Entertainment International Inc. is a global gaming operator and media company specializing in online gaming, online poker, esports, sports betting, online lottery, mobile 50/50, charity fundraising, software and blockchain-based payment solutions.

Forward-looking statements:

This press release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. When used in this release, words such as “estimate”, “expect”, “anticipate “, “project”, “anticipated”, “anticipated” and similar expressions are intended to identify forward-looking statements which, by their very nature, do not guarantee the future operational or financial performance of HeadsUp Entertainment International Inc. and are subject to risks and uncertainties. cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Due to risks and uncertainties, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.

SOURCE HeadsUp Entertainment International Inc.