QYOU Media has successfully completed its acquisition of a majority ownership stake in Maxamtech Digital Ventures, a six year old India Venture that creates technology and games for mobile gaming. QYOU Media initially bought a 51 percent share of Maxamtech’s outstanding shares, giving it full control. However, terms have been agreed to purchase the remaining 49% based on an multiple of EBITDA in the calendar years 2023-2024 and 2025. The QYOU Media and The Q India continue to push for a larger audience reach of over 125 millions young Indians each week by acquiring a 51 percent stake in Maxamtech. The Q India will also increase its portfolio direct-to-consumer products by 2023.
The mobile gaming industry is India In recent years, it has seen an unprecedented increase in popularity. KPMG reports that there are now 420 million online gamers IndiaIt is second only to China. This is due to a growing population with more disposable income and a rapid increase in smartphone use. The mobile gaming industry is expected to generate over $1.5 billion in revenue. $5 billion USD in 2025, largely fueled by discovery and adoption of casual and free to play games, a specialty of Maxamtech’s Gaming 360 platform.
Maxamtech Digital Ventures co-founder Xerxes Mullan commented, “We have been conceptualizing and working with the team at Q India since the signing of the term sheet so we are hitting the ground running. The mobile gaming industry offers huge opportunities for revenue generation and user growth. India We feel that the time is right to leverage the Q distribution channels’ audience reach with our proven ability generate sticky mobile game play for casual gamers. It is great to now be fully started and we expect to have products available in the market in Q1 2023″.
Co-founder and CEO of QYOU Media Curt Marvis, added, “As we continue to diversify the products we offer to our ever growing audience of young Indians, it was clear that casual mobile gaming was at the top of the list of needed products. For both brands and users, mobile gaming’s increasing popularity and engagement are the core of their universe. We are firm believers that the sky’s the limit to the extent we can leverage the synergies and growth opportunities in the Maxamtech business with our current channel and influencer driven capabilities.”
The Company announced that Maxamtech was closed. Further details can be found in the Company’s press release, 17November 2022It received a cash commission in the amount of $240,288 and issued an aggregate of 1,922,304 compensation options (each a “Compensation Option”) to Clarus Securities Inc., who acted as sole agent and bookrunner on behalf of a syndicate, in connection with the “best-efforts” public offering of units of the Company (each a “Unit”) that closed on 17November 2022. Each Compensation Option allows the holder to purchase one Unit at an exercise cost of $0.125 Up to 17November 2024. In connection with the Company’s concurrent private placement of 1,840,000 Units, it paid an aggregate of $7,500 and issued compensation options to acquire up to 60,000 Units as finder’s fees to a certain person who assisted the Company.
On 9January 2023The Company issued 3,750,000 options stock options with an exercise price at $0.125 Expiring 9January 2028 1,875,000 restricted stock units with standard vesting terms to provide additional compensation to certain company executives, board members and directors for services in 2022.
