SBC News EBET enters foreclosure as auction opens on igaming brands

EBET enters foreclosure as auction opens on igaming brands

EBET Inc has entered foreclosure procedures, which will see its assets put up for sale to repay debt owed to creditors.  The sale of assets follows EBET defaulting on payments of its corporate debt, which stands at $37m as of June 2024.

Last October, EBET common shares were terminated from the Nasdaq Capital Market and moved to the OTC Pink Market, recognized as the US financial market’s most speculative tier of trading.

In June, EBET informed markets that its primary creditor had exercised its rights to put the company under foreclosure to satisfy outstanding debt obligations. Yesterday, Hilco Streambank, a specialist in deposition services, announced that it had been put in charge of EBET’s foreclosure proceedings, in which it will initiate an auction of its assets.

Hilco Streambank has set a deadline of 30 July for bids before a public auction is conducted on August 1. The bidding process will be for EBET’s portfolio of iGaming brands including Karamba, Hopa, Griffon Casino, BetTarget, Generation VIP, Dansk 777, and Scratch2Cash.

The auctioneer informed that EBET brands generated approximately $21m in revenues in the past twelve months up to 31 March 2024, servicing a customer base of 18.4K players per month, with an “average first-time deposit of €127.”

EBET launched its iGaming portfolio in 2021, having acquired the B2C assets of Aspire Gaming for $76m.

However, according to reports at the start of 2023, the relationship between the two parties soured as EBET and Aspire became embroiled in a legal battle over the M&A deal. EBET accused Aspire of ‘fraudulent activities’ regarding false player representation, reportedly seeking €65m in damages.

Interested parties were informed that the “foreclosure sale may entitle a buyer to receive rights in trademarks, domain names, patents, copyrights, customer and transaction data for 925k users, front-end website code, marketing services accounts and contracts, interest as plaintiff in litigation with potential for an award of substantial damages, and shares of certain subsidiaries.”

Hilco Streambank CCO, Richelle Kalnit, commented: “A buyer of the assets has the opportunity to tap into a rapidly growing online gaming market and to expand upon the brands’ success by emphasizing and/or re-entering certain markets, re-engaging the large player database, and optimizing software and marketing operations.”

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