SPYR Acquires 100% Ownership of Pocket Starships in Cashless Transaction
Secures Proprietary Content, Cross-Platform Engine, Intellectual Property and Internet Domains
DENVER, CO -- (Marketwired) -- 09/12/17 -- SPYR, INC. (OTC PINK: SPYR), a holding company with a wholly owned subsidiary in the mobile game & app development and publishing industry, today announced that its wholly owned subsidiary, SPYR APPS, LLC, has acquired all of the assets related to its flagship game, Pocket Starships, a real-time, cross-platform space-themed massively multiplayer online (MMO) game. More than $6 million has been invested in the free-to-play game, which has garnered overwhelmingly positive reviews and is available on iOS, Android, Kindle mobile devices, as well as on PCs in web browsers. Included in the assets and that investment is the game's proprietary back-end engine, which SPYR can leverage and re-skin to create additional games and expand its presence in the game industry in a cost-effective manner.
SPYR has been publishing Pocket Starships since January of 2016 and previously announced that it had procured an option to purchase the game and all assets related thereto. See https://ir.spyr.com/press-releases/detail/137/spyr-obtains-option-to-purchase-all-intellectual-property
On August 31, 2017, SPYR entered into a definitive agreement with the game's owner pursuant to which SPYR will own all of the game related assets of Pocket Starships, in a completely cashless transaction, which means that SPYR will now be able to retain 100% of the revenue generated from the game and will be the sole owner of all of the assets related to the game. Under the terms of the agreement, the game's owner will receive 8,000,000 restricted shares of SPYR stock (subject to resale gating provisions) and 8,000,000 three-year cash-based options exercisable at $0.50 per share.
The company will release all additional details of the transaction in an 8K, which it intends to file with the Securities and Exchange Commission, within 4 business days of the close of the transaction, which is anticipated to close at the end of September 2017. The acquisition includes, among other assets, all Pocket Starships related intellectual property, the userbase, artwork, software, internet domains, game store accounts (such as App Store, Play Store, Amazon, and Facebook Gameroom), web portal accounts (Facebook, VK.com, Kongregate, etc.) and internet domains (www.pocketstarships.com).
Lars Koschin, the creator of Pocket Starships, states, "All of the parties involved with the development of Pocket Starships have always had a lot of confidence in the SPYR team and we have enjoyed a very productive partnership with SPYR over the past two and a half years. After investing in the team and the product, we all agreed that selling all of the assets of Pocket Starships to SPYR in an all stock transaction was in everyone's best interest and highlights the confidence that we have in the game's future success, SPYR's management team as a partner, and further reinforces our belief in the ultimate long-term value of SPYR's stock. We all look forward to continuing to work together as a team on this and many other projects and acquisitions in the near future."
James R. Thompson, SPYR's CEO and President, states, "The acquisition of Pocket Starships is something we have been working toward for a long time. We will now be able to recognize the game as an asset of the Company and will be able to retain all of the revenue it generates in the future. We are very excited about the prospects for Pocket Starships and look forward to continuing to work with its development team to enhance all components of the game, which will provide increased revenue and profitability in the future."
SPYR, INC. is a holding company that through its wholly owned subsidiary SPYR APPS, LLC, is engaged in mobile application and game publishing and development. The Company is currently exploring opportunities for additional acquisitions in these and other verticals, including mobile application and game development, in order to expand its holdings, to drive and increase revenue and to generate profits and build value for shareholders.
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Investor Relations Contact:
Marmel Communications, LLC
Source: SPYR, Inc.
Released September 12, 2017