ASX/Media Release
14 June 2016
HIGHLIGHTS
Chapmans special purpose subsidiary COL invests $5m for a 9.76% holding post
raise in breakthrough gaming business Fantasy Sports Global Limited (FSG) with
significant international market opportunities
Ho Family Investment - Prominent global gaming investor and operator, the Ho
Family from Hong Kong and Macao invest $5.425m for a 10.59% post raise interest
in FSG with plans to access and expand FSG’s penetration into the large and
highly active Chinese market
The Directors of Chapmans Limited (ASX: CHP) (Chapmans, the Company) are pleased to
announce that subsidiary, Chapmans Opportunities Limited (COL), has taken a strategic $5
million in emerging mobile and online sports gaming business Fantasy Sports Global Limited
(FSG).
FSG is an Australian-based sports technology company focused on the development and
operation of state-of-the-art fantasy sports gaming platforms. ‘Fantasy Sports’ are online games
where participants assemble imaginary or virtual teams of real players of a professional sport,
and is a rapidly growing multibillion-dollar global industry.
Investment
COL has acquired $5 million of ordinary shares in FSG for an initial equity holding of 9.76% post
raise in FSG (48,543,689 shares) with an option to invest a further $5 million as part of FSG’s
$20 million Series B Placement Offer.
FSG has also entered into an exclusive mandate with CHP under which CHP is to provide
strategic corporate advice to FSG including the commercial structuring and development of
FSG’s product offering into international markets including China, India, Europe and the United
States. CHP is also advising FSG on a proposed ASX listing of FSG anticipated to be
undertaken within 12 months.
Ho Family Investment and Plans for Chinese Market
Co-investing alongside COL is prominent Hong Kong-based business and gaming family, the
Ho family who through their investment entity Ruby Charm Investment Limited have subscribed
for 52,699,903 shares under the Placement representing an initial investment of $5.425 million.
FSG intends to enter into a strategic commercial agreement under which the Ho family interests
will play a key role in gaining regulatory approvals, market access and development to drive the
growth of the business in mainland China and other Special Administrative Regions (SAR’s)
including Macao and Hong Kong.
FSG has developed a suite of fantasy sports platforms, including Business-to-Consumer and
Business-to-Business offerings. Its B2B model includes a white-label platform that is customised
for use by corporates and big brand advertisers. FSG also has a sophisticated actuarial based
player performance and metrics system which provides a complete turnkey database of player
statistics to help users select their teams.
These two proprietary features position FSG as a compelling strategic partner for existing global
gaming operators who can customise FSG’s turnkey data system for expansion into their
existing customers for an improved and dynamic product offering and customer experience.
The commercial value of this technology and FSG's B2B strategy is validated by the upcoming
release of a tailored Fantasy Sports platform for the Australian arm of one of the world's largest
sports betting agencies, with more expected to follow.
“Daily Fantasy Sports is now a sizeable industry which is emerging across the globe and
cannot be overlooked. We have chosen to invest in Fantasy Sports Global because they
have truly innovated their products to a whole new level. Our investment will fast track a
launch into the Chinese market and we are excited to be onboard with Fantasy Sports
Global and its dedicated team of staff.” says Tommy Ip, a spokesman for Ruby Charm
Investment Limited and the Ho Family.
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CHP Price at posting:
1.3¢ Sentiment: None Disclosure: Held