REG - Mobile Streams plc - Mobile Streams signs NFT contract with Cadiz FC

Mobile StreamsAnnouncement

11/01/2023 07:30

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RNS Number : 3664M  Mobile Streams plc  11 January 2023

11 January 2023

 

Mobile Streams plc

("MOS" or "the Company")

 

Mobile Streams signs NFT contract with Cadiz Football Club

 

Mobile Streams plc, the AIM quoted mobile content and data intelligence
company, is delighted to announce it has signed a 5 year contract with La Liga
football club Cadiz to be their exclusive provider of NFT products.

 

Cádiz Club de Fútbol, S.A.D., known simply as Cadiz, is a Spanish
professional football (https://en.wikipedia.org/wiki/Association_football)
 club based in Cádiz (https://en.wikipedia.org/wiki/C%C3%A1diz)
, Andalusia (https://en.wikipedia.org/wiki/Andalusia) . Founded in 1910, the
Club competes in Spain's top tier football league La Liga. Last year the club
also reached the quarter finals of the Copa del Rey, Spain's top cup
competition.

 

This first partnership with a La Liga club marks an important step in the
Company's strategy of expanding and solidifying its "HeroesNFTclub" brand as a
top licensed provider of sporting digital merchandise. La Liga is one the
world's top sporting leagues. The Company is actively engaged in progressing
further NFT deals globally and announcements on these will be made when
appropriate.

 

Non-Fungible Tokens ("NFTs") are digital data stored in a blockchain, a form
of distributed ledger. The ownership of an NFT is recorded in the blockchain,
and can be transferred by the owner, allowing NFTs to be sold and traded. In
effect the Company's products are digital merchandise. An example would be a
sports trading card - NFTs produced under this contract are one-of-a-kind
trading cards. If you traded it for a different card, you'd have something
completely different.

 

The global NFT market is expected to reach $122 billion in size by 2028, with
more than $17 billion in sales in 2021 and $35 Billion expected to be
generated this year.

(Source: The Global Non-Fungible Tokens (NFTs) Market is expected to
(globenewswire.com)
(https://www.globenewswire.com/en/news-release/2022/05/26/2451426/0/en/The-Global-Non-Fungible-Tokens-NFTs-Market-is-expected-to-reach-a-value-of-USD-122-43-Billion-by-2028-at-a-CAGR-of-34-10-over-the-forecast-period-2022-2028-SkyQuest-Technology.html)
)

 

MOS intends to produce a large range of NFTs for Cadiz. NFTs will be sold via
a primary marketplace that MOS is creating for the club which can be accessed
via the team digital touch points, such as the Cadiz website and social media
accounts. Additionally, the NFTs will be sold via MOS's telco contracts
globally, its LiveScores sites and Apps and the MOSMetaverse website. They
will be marketed not only by the Cadiz site, but also online across the world
to fans globally.

 

Under the terms of the Agreement, the parties have agreed a target revenue
figure  over the 5 years of the contract of which MOS's share is
approximately €3,7m as per the revenue-share arrangement. This net figure,
which is a target agreed between MOS and Cadiz and not a forecast or guidance
as to what will actually be achieved.  Revenue from the NFTs will come from
both the sale price of the NFT and a royalty generated from them each time
they are traded in perpetuity, these royalties are typically 5-10% of the sale
price.

 

The Agreement also requires MOS to make an initial cash payment to Cadiz,
which is well covered by the Group's existing cash and cash equivalents, and
if certain revenue targets in a year are met then a minimum revenue guarantee
would exist for the next year. However, in the context of the revenue that MOS
would receive for this to be activated, the Board considers these would be
modest and achievable from within the next year's revenue that MOS expects to
receive from the contract. The Board further believes that, noting the
expected recurring nature of NFT royalty revenues], it estimates that its
maximum net exposure, under all but the most extreme worst case commercial
assumptions, including the upfront cash fee, would be approximately €100,000
over the first 3 years of the Agreement. The Agreement contains a 3-year break
clause and standard terms for termination.

 

Mark Epstein, CEO Mobile Streams plc, said:

"We are delighted to have signed this contract with Cadiz.  They are a hugely
popular team with a great fan base. It's a privilege to be working with such a
great club as our first in La Liga"

 

Enrique Pérez, Director Cadiz, said:

"We are very pleased to be partnering with Mobile Streams for our NFT's. We
can't wait to deliver a new generation of digital merchandise to our fans.
Products that drive engagement and participation with the team, along with
additional revenue for the club. We look forward to a long and successful
partnership."

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

About Mobile Streams

Mobile Streams delivers world class gaming content to a global audience,
through its LiveScores and mobilegaming.com platforms, our long-standing
carrier relationships in countries including India, Argentina and Mexico, and
partnership with IGS (International Gaming Systems). Our Streams data insight,
intelligence and visualisation services and marketing optimisation tools
support the content business, as well as serving enterprise level bespoke
clients and the Streams SaaS ("Software as a Service") self-service platform.
Our strategy is to deliver next-generation content including gaming, Esports
and related NFTs to a global audience.

 

For further information, please contact:

 

Mobile Streams plc

Nigel Burton, Non-Executive Director

+44 77 8523 4447

www.mobilestreams.com (http://www.mobilestreams.com)

 

Beaumont Cornish (Nominated Adviser)

James Biddle and Roland Cornish

+44 (0) 20 7628 3396

 

Peterhouse Capital Limited (Broker)

Lucy Williams and Duncan Vasey

+44 (0) 20 7469 0930

 

 

 

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