Gamelancer Media Corp. (OTC:GAMGF) Stock Surges 53%: Here is Why

On Wednesday morning, investors are expected to be looking into the price action in the stocks of companies that had been in the news the day before. Yesterday, Gamelancer Media Corp. (OTC:GAMGF) was one of the companies to hit the news cycle after the company announced that it had completed a key transaction.

By way of the transaction, the company managed to acquire as many as 68 digital media channels from the firm Offbeat Media Group, Inc. The deal had been completed in exchange for cash to the tune of $2 million. Gamelancer Media would pay $1 million at the time of closing, and the rest would be paid off in instalments over the course of the following 18 months. The residual amount had been tied up with a secured promissory note, and according to its provisions, the assets would revert to Offbeat in case of default.

Additionally, Gamelancer Media also announced yesterday that it had also been successful in the closing of a non-brokered private placement of C$17,00,000 worth of its common shares. The shares had been issued for $0.04 each, and the investment was led by Carriage House Capital. The company issued as many as 42,500,000 common shares in relation to the offering.

The proceeds raised from the offering had been used by Gamelancer Media to make the initial payment to Offbeat Media Group. Offbeat is a digital channel owner based out of Atlanta, Georgia. It was revealed yesterday that it was on course to produce as much as $500,000 in EBITDA in the 2023 fiscal year from all the channels that had been acquired by Gamelancer Media. By virtue of the acquisition, the network belonging to Gamelancer Media went up to as many as 107 channels and 52 million followers. More than 70% of the audience on the channels is based in the United States.