X1 Esports Closes Acquisition of Tyrus LLC
X1Esports Closes the Acquisition of Tyrus LLC as the Company
Builds a Leading Video Games and Creator Economy Business
● Acquisition is intended to expand X1 Esports’ reach into Gen Z
demographic and add additional revenue streams
● Tyrus’ talent operates as a digital influencer management firm, and is
specializing in working with YouTube, TikTok, and Twitch content creators,
brand ambassadors and brands across all social media channels
● Tyrus’ client roster of over 60 high profile content creators have a
combined reach of over 20 million followers
● Tyrus has worked with leading global brands including: Warner Brothers,
OMEN, Best Buy, Hello Fresh, and Panera to reach into the Gen Z
demographic of its content creators
VANCOUVER, BC - August 5, 2022 – X1 Esports and Entertainment Ltd. (CSE:XONE)
(“X1” or the “Company”), a video games and creator economy portfolio company which
owns and operates a growing Esports franchise, is pleased to announce the closing of
the previously announced transaction with Tyrus LLC (“Tyrus”), an influencer
management firm empowering gamers, content creators and influencers (“the
Transaction”). On closing of the Transaction, the Company holds all issued and
outstanding securities of Tyrus, which will operate as a subsidiary of X1.
“The Tyrus Transaction offers tremendous opportunity for X1 to partake in the growing
global creator economy which is an industry of over 50 million individual content creators1
where Tyrus is extremely well -positioned,” said Mark Elfenbein, CEO of X1 . “The video
game category has been a top category of the creator economy and has largely benefited
the growth of the video game industry recently.”
In connection with the closing of the Transaction, Tyrus’ Manager, Amanda Solomon, will
also join the X1 Advisory board. Amanda is an accomplished leader specializing in
1 Klein, Matt, “50 Million Join The ‘Creator Economy’ Thanks To Platforms Like OnlyFans, YouTube, Etsy
And Twitch”, Forbes, September 23, 2020, https://www.forbes.com/sites/mattklein/2020/09/23/50m-join-
the-creator-economy-as-new-platforms-emerge-to-help-anyone-produce-content--
money/?sh=171b93e53165> (accessed on August 4, 2022).
gaming and Esports, and has driven brand integration, influencer marketing campaigns,
and talent partnerships with well-known companies and brands including Epic Games,
OnePlus, and Gucci.
Since 2017, Tyrus has built a client roster of over 60 high profile content creators
(iambrandon, Catiosaurus, Kalief (Spawn on Me) & Friskk) with a combined reach of over
20 million followers 2. Tyrus provides comprehensive management o f YouTube, TikTok,
Twitch and other social media channels as well as consultation on personal brand growth
strategies and partnership management and has grown since April 2021 from a roster of
seven talent, to August of 2022 with a roster of 65 talent.
“Becoming part of the X1 family will allow Tyrus to extend its reach and engage with new
and exciting talent in the gaming and esports community,” said Amanda Solomon, CEO
of Tyrus. “The talent and diversity of our influencer roster is something we take great pride
in. I look forward to growing our presence in this space and providing unique access for
global brands to a highly influential GenZ audience”.
Transaction Terms
Pursuant to the terms of a membership interest purchase agreement dated July 15, 2022,
the Company acquired 100% of the issued and outstanding membership interest of Tyrus
for total consideration of up to approximately US$350,000 (the “Purchase Price”). Th e
Purchase Price is divided into the following payments : i) US$150,000 in cash payments
due within 60 days of closing; and ii) 555,555 fully -paid common shares in the capital of
the Company at a deemed issue price of $0.45 per Common Share , which were issued
on closing of the Transaction . In addition, a bonus payment of US$100,000 may be
payable if Tyrus reaches US$1,750,000 in its first full year of revenue, which may be
settled in cash or Common Shares at the option of the Company.
The Common Shares forming part of the Purchase Price are subject to subject to a
statutory hold period of four months and one day from the date of issuance, and a
contractual resale restriction that will result in 25% of the Common Shares being released
twelve (12) months following the closing date, and 25% being released at six (6) month
intervals thereafter.
The securities of the Company referred to in this news release have not been and will not
be registered under the United States Securities Act of 19 33, as amended (the “U.S.
Securities Act”), or any state securities laws. Accordingly, the securities of the Company
may not be offered or sold within the United States unless registered under the U.S.
2 Tyrus, https://tyrus.tv/for-brands/our-talent/ (accessed August 4, 2022).
Securities Act and applicable state securities laws or pursuant to an exemption from the
registration requirements of the U.S. Securities Act and applicable state securities laws.
This news release does not constitute an offer to sell or a solicitation of any offer to buy
any securities of the Company in any jurisdiction in which such offer, solicitation or sale
would be unlawful.
For more information, please contact:
Mark Elfenbein
CEO and Director
www.X1Esports.com
About X1
X1 Esports and Entertainment Ltd. is a video game and media portfolio company which
owns and operates a growing esports franchise, RixGG. The business of the Company
is the competitive playing of video games by teams for cash prizes, and operations
ancillary to such competition, such as merchandising and the hosting of tournaments.
For more information on the Company, visit www.X1Esports.com or email
About Tyrus
Tyrus, and its talent services, is a boutique talent management group for digital content
creators. Specifically, we work with creators in the gaming and lifestyle verticals, providing
creators with paid opportunities from free game codes to booking for live shows and paid
partnerships around the globe. We also offer more integrated services such as social
media management, platform management, video editing, and short form content editing.
To put it simply, Tyrus supports our creator’s business with expert knowledge and
management of partnerships and activations with major companies.
Forward-looking information
All information contained in this news release with respect to the Company and Tyrus
was supplied by the parties, respectively, for inclusion herein, and the Company and its
respective directors and officers have relied on Tyrus for any information concerning such
party.
Certain information in this news release may contain forward -looking statements that
involve substantial known and unknown risks and uncertainties. Forward -looking
statements are often identified by terms such as “will”, “may ”, “should”, “anticipate”,
“expects” and similar expressions. All statements other than statements of historical fact
included in this news release are forward -looking statements that involve risks and
uncertainties. There can be no assurance that such statements will prove to be accurate
and actual results and future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ materially from the
Company’s expectations include the fai lure to satisfy the conditions of the relevant
securities exchange(s) and other risks detailed from time to time in the filings made by
the Company with securities regulations. The reader is cautioned that assumptions used
in the preparation of any forward -looking information may prove to be incorrect. Events
or circumstances may cause actual results to differ materially from those predicted as a
result of numerous known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of the Company. The reader is cautioned not to place undue
reliance on any forward -looking information. Such information, although considered
reasonable by management at the time of preparation, may prove to be incorrect and
actual results may differ ma terially from those anticipated. Forward -looking statements
contained in this news release are expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made as of the date of this
news release and the Company disclaims any intention or obligation to update or revise
such information, except as required by applicable law.