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Significant Developments and Transactions
Golden Matrix Group, Inc. (ticker GMGI) recently released its quarterly report, which highlights several significant developments and transactions. Among the notable updates is the increase in the authorized number of common stock shares from 28,182,575 to 36,124,526. Additionally, the company issued restricted stock units (RSUs) to its management, independent directors, and consultants as part of its equity incentive plans.
Business Consultant Agreements
The quarterly report reveals that Golden Matrix Group entered into two business consultant agreements with Ontario Inc. and ANS Advisory on March 1, 2021. Under these agreements, the consultants were granted monthly shares of common stock, payable based on the average stock price leading up to the end of each month. The company also issued warrants to these consultants for the purchase of additional shares of common stock. However, these warrants expired on March 22, 2023, without being exercised.
Exercise of Options and Issuance of Restricted Stock
During the six months ended April 30, 2023, two consultants and two directors exercised their options to purchase common stock, resulting in the issuance of 7,122,230 shares of common stock upon cashless exercise. In the same period, 4,277 shares of restricted common stock were issued to a consultant in connection with investor relation and press release services. These transactions demonstrate the company’s commitment to aligning the interests of its consultants and directors with the success of the company.
Acquisition of RKings
Another significant development highlighted in the quarterly report is the acquisition of RKings, wherein Golden Matrix Group purchased 80% of the outstanding capital stock of RKings. As part of the agreement, the company issued 666,250 restricted shares of common stock to the sellers at an agreed value of GBP £4,000,000 (USD $5,330,000). Additionally, the company exercised a buyout right on October 27, 2022, and paid the minority owners $1,323,552, which was satisfied by the issuance of 165,444 shares of restricted common stock. With this transaction, RKings became a wholly-owned subsidiary of Golden Matrix Group.
Extension of Stock Options
The report also includes information on the extension of stock options granted to Anthony Brian Goodman, the company’s Chief Executive Officer, Weiting Feng, the Chief Operating Officer, and an external consultant. These options, which would have expired on June 30, 2021, were extended until December 31, 2022. Mr. Goodman and Ms. Feng exercised their options on December 1, 2022, resulting in the issuance of 5,248,983 shares and 1,364,406 shares of common stock, respectively.
Grant and Vesting of Restricted Stock Units (RSUs)
Furthermore, the report outlines the grants and vesting of restricted stock units (RSUs) to management, independent directors, and other related parties. The RSUs are subject to certain performance metrics based on revenue and EBITDA targets. For the year ended October 31, 2022, the company met the required performance metrics, resulting in the vesting and settlement of RSUs in shares of common stock.
Grant and Vesting of RSUs and Restricted Stock
The report also provides details on the grants and vesting of RSUs and restricted stock to employees and consultants who are non-related parties. During the six months ended April 30, 2023, a total of 1,073,400 RSUs were granted to employees and consultants. Additionally, the company granted restricted shares of common stock to Aaron Johnston, former member of the Board of Directors, and Mark Weir, director of RKings.
Purchase of Treasury Stock
To mitigate a significant overhang on the market, Golden Matrix Group approved the purchase of up to $2 million in shares of the company’s common stock as treasury stock. The company has already made several purchases of treasury stock in April 2023.
Conclusion
In conclusion, Golden Matrix Group’s quarterly report highlights various significant transactions and developments. The increase in the authorized number of common stock shares and the issuance of RSUs to management and consultants demonstrate the company’s commitment to aligning interests and incentivizing its key stakeholders. These strategic moves contribute to the company’s growth and enhance shareholder value.
References
- Golden Matrix Group, Inc. Quarterly Report, April 30, 2023.
- Golden Matrix Group, Inc. Quarterly Report, October 31, 2022.
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