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  • The transaction is expected to strengthen X1’s position in gaming media, adding more than 30,000 Shift social media followers at twitter.com/ShiftRLE
  • Rocket League averages more than 80 million monthly players worldwide 1
  • The acquisition is X1’s second closed post-IPO acquisition following the announcement of the closing of the Tyrus LLC acquisition on August 5. e 2022.

X1 Esports and Entertainment Ltd. (CSE: XONE) (“X1” or the “Company”), a video game and media holding company that owns and operates a growing Esports franchise and a leading business in the creator economy, is pleased to announce, following its press release dated July 25, 2022, it has completed its previously announced acquisition of the assets comprising ShiftRLE (“Shift”), an online media outlet focused on the popular video game, Rocket League.

In connection with the acquisition of the assets comprising Shift’s business, the Company has entered into consulting agreements with four vendors, who as key personnel will be responsible for the continued operation of Shift, and has distributed to such persons 333,333 common shares in the capital of X1 with a deemed issue price of C$0.45 per common share (the “Consideration Shares”). In addition to the Consideration Shares, the Company is paying the sellers a cash purchase price of $50,000 in cash, of which $25,000 was paid in connection with the closing of the acquisition and $25,000 payable within 45 days following the closing date. Sellers will also be eligible to receive earnout payments for 36 months from the closing date in payment of a 7% share of the gross revenue Shift earns up to a maximum of $250,000 (the “ price clearing”). The earn-out may be paid in cash or in common shares at the option of the Company, at a price deemed equal to the trading price fourteen days prior to the date of payment or at such other price as may be required by the policies of the Stock Exchange. .

The Consideration Shares will be subject to a CSE-mandated hold period of four months from the date of issue, and a contractual resale restriction which will result in the release of 25% of the Consideration Shares six (6) months after the closing date, and 25% released at six (6) month intervals thereafter. For more information on the vesting conditions, please see the Company’s press release dated July 25, 2022.

We are delighted to have completed the acquisition of Shift,” said Mark Elfenbein, CEO of X1. ” Not only has the Shift community grown significantly over the past year, but we believe Rocket League has huge global appeal with fans looking for the content Shift can offer.”

Information about ShiftRLE

Las Vegas-based ShiftRLE, led by co-founders Achilleas Fotiou and Jalen Jones, has demonstrated consistent user audience growth since launching in 2020. Shift currently reaches over 8 million impressions during the seasonal period of RLCS, while recording growth of 14 million impressions during transfer periods when the list’s news cycle is most active. With operations in America and Europe, the organization has established an international presence in the esports industry.

As Rocket League continues its rise to become a household name in the esports and gaming worlds, our team at Shift will remain committed to being a part of it in many facets. X1’s investment should not only reflect their faith in us, but also the potential of Rocket League as a whole. We are extremely excited to continue to build Shift and fully realize our aspirations to become the media company that will stick around for years to come.”

Rocket League is one of the world’s leading esports 2 . With 5-minute games that feature non-stop action, the hybrid car-soccer game has seen significant growth with players of all demographics since launch, now with global averages of 80 million players per month, according to Active Player. 3 .

Shift is an independent source of information for Rocket League fans. He first rose to prominence by getting exclusive, behind-the-scenes insight into Rocket League roster moves and tries before they were made public. Shift plays a key role in ensuring the conversation around Rocket League esports continues beyond the pitch through coverage and information around roster deals and general esports news, ensuring that fans stay engaged even during slower competitive times.

About X1

X1 Esports and Entertainment is a video game and media holding company that owns and operates a growing esports franchise, RixGG. The Company’s business is team-based video game competition for cash prizes, and operations ancillary to such competition, such as merchandising and organizing tournaments.

For more information please contact:

Marc Elfenbein

CEO and director

[email protected]
www.X1Esports.com

FORWARD-LOOKING STATEMENTS:

Certain information in this press release may contain forward-looking statements that involve important known and unknown risks and uncertainties. Forward-looking statements are often identified by words such as “will”, “may”, “should”, “anticipate”, “expect” and similar expressions. All statements other than statements of historical facts included in this press release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking information contained in this press release includes ShiftRLE’s ability to integrate into the X1 portfolio as expected or not at all, ShiftRLE’s growth, and ShiftRLE’s establishment as a media company with longevity in the space, and the realization of any revenue by ShiftRLE. Important factors that could cause actual results to differ materially from the Company’s expectations include failure to meet the conditions of the relevant stock exchange(s) and other risks detailed from time to time in filings by the Company with securities regulations, as well as a failure to achieve anticipated growth, with or without Shift, changing market and industry conditions, the ability of each of X1 and ShiftRLE to implement their respective business strategies, including expansion plans, the continued suitability of ShiftRLE’s media capabilities, competitive conditions, adverse industry events, the availability of capital and financing as needed, and the Rocket League’s continued relevance. Readers are cautioned that the assumptions used in preparing any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those anticipated due to numerous known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control. Readers are cautioned not to place undue reliance on forward-looking information. Such information, although considered reasonable by management when prepared, may prove to be incorrect and actual results may differ materially from those anticipated. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation to update or revise such information, except as required by applicable law.