HeadsUp Completes Corporate Milestone in Acquisition of Spinola Gaming

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CALGARY, AB, Aug. 16, 2022 /CNW/ - HeadsUp Entertainment International Inc. (OTCPINK: HDUP) has now completed a major milestone in the acquisition of Spinola Gaming, a leading Global Lottery software provider.

This step in the acquisition process of Spinola has now been completed with the buyout of all previous 3rd party shareholdings of the group of Spinola companies. This step now allows for HeadsUp to complete and finalize definitive agreements for the full acquisition of Spinola and its related companies. The buyout of these shares was imperative for HeadsUp to acquire 100% of the company and its assets which includes Licenses to operate across various European, Latin America and other regulated markets.

The full acquisition of Spinola and its related assets is an integral part of HeadsUp's global strategy across the Charity, Lottery and Gaming space and the takeover of Spinola will not only enable it to expand into new global markets but also execute on its existing strategies with its full range of Lottery, Instant Win and charitable fundraising solutions.

Independent valuations completed by HeadsUp concluded that the value of the agreements currently in place have the potential to generate more than $150m in revenues with further room to expand on this with new contracts currently in negotiations. The value of the Spinola acquisition is substantial with management of HeadsUp engaging 2 independent valuations during the Due Diligence process that came in at $65M and $72M USD.

Spinola's current contracts span from Key market operations in Colombia, Peru, Brazil and other Latin American markets These regions represent the strongest growth for lotteries and one of the biggest opportunities for Spinola/HeadsUp. In addition to Latin America, Spinola has new Projects scheduled for Release in Q4 2022 in 6 African Nations and a first time National Lottery product in The United Arab Emirates which is set to launch the World's Biggest Lottery Jackpot across the globe.

The recent acquisition of LotteryHUB partnered with Spinola's products and services will now see LotteryHub become the World's first global Lottery Marketplace solution with key partnerships being sought for various European, Asia Pacific and US based operations.

The global lottery industry is currently generating approx. $300billion in annual revenues and 95% of these transactions still take place through physical retail outlets. With the increase in online and ecommerce activity globally, this represents an exceptional growth opportunity as more state and national operations move into the online space as a natural progression to their existing business models. It is expected that the value of online activity across the global to reach 15-20% over the coming years thus representing a potential market share opportunity of approx. $45-60billion in annual online lottery transactions.

HeadsUp is now excited to begin to announce a substantial number of contracts through the Spinola deal that represent the previously announced anticipated revenues and earnings plus additional contracts that management has closed over the past 45 days.

With respect to the corporate finance roadmap and public market strategy, this deal takes the fundamental step towards closing the reverse triangle merger that management has previously announced.  HeadsUp Entertainment International will now be facilitating it requirements of filing fully audited financial statements and then filing a Registration Statement with all information required by the regulators including the Alberta Securities Commission to remove the cease trade order and allow for the consolidation of these and other assets soon to be announced through acquisition into a fully reporting vehicle which is expected to have the required assets and revenues to qualify for a full NASDAQ listing.

The reason for the reverse merger strategy was to minimize dilution to the existing shareholders of HDUP which includes the control block of stock held by the management team and insiders.

There will be many announcements forthcoming on the individual contracts, product launched and revenues from the Company.  Please also follow the HeadsUp Twitter account @HeadsUpHDUP for additional transaction information.

About HeadsUp Entertainment International Inc.

HeadsUp Entertainment International Inc. is a global gaming operator and media company focusing on online gaming, online poker, eSports, sports betting, online lottery, mobile 50/50, charity fundraising platforms, software and blockchain based payment solutions.

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this release, words such as "estimate," "expect," "anticipate," "projected," "planned," forecasted" and similar expressions are intended to identify forward-looking statements, which are, by their very nature, not guarantees of HeadsUp Entertainment International Inc.'s future operational or financial performance and are subject to risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Due to the risks and uncertainties, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements because of new information, future events or otherwise.

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SOURCE HeadsUp Entertainment International Inc.

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