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ASX/Media Release 14 June 2016 HIGHLIGHTS  Chapmans special...

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    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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