Digital entertainment and sports information company Global Gaming Network (GBGM) has signed a binding merger agreement with multimedia content firm Innovativ Media Group.
Under the agreement, GBGM will acquire 100% of Innovativ’s stock and assets in exchange for restricted, preferred and common shares of GBGM, valued at $4 million (€3.6 million), the redemption of the majority of GBGM’s outstanding series B preferred shares and the retirement of just over $456,300 in GBGM debt.
As part of the deal, Innovativ president Tom Coleman will become chief executive of the combined company, replacing Stephen Kern, who currently oversees operations as president of GBGM.
In addition, the company will change its name to the Innovativ Media Group.
“I’m pleased to hand over the GBGM operations to Tom Coleman, who has a long and successful track record running both public and private companies,” Kern said.
“I’m confident this merger will accelerate the near-term growth of the company and produce outstanding, sustained results as well.”
Coleman added: “We believe that this reverse merger transaction will afford us the opportunity to more rapidly develop our assets and scale operations which will create substantial future shareholder value.”
The transaction is expected to go through within the next two weeks.