Completion of Share Purchase Agreement & Acquisition of Money Line Sports

Montréal - TheNewswire - August 11, 2021 - ZeU Technologies, Inc. (CNSX:ZEU.CN) ZEUCF announced today, further to its news release dated May 6, 2021, that it has executed the definitive agreement to acquire all of the issued and outstanding shares of Money Line Sports Inc and its wholly-owned subsidiary, Money Line Sports Acquisition Corp., through ZeU Gaming Inc., a wholly-owned subsidiary of ZeU Technologies, Inc, for a total consideration of CDN$1,501,500.

In 2019, forty-one percent of online gambling revenue in Europe came from sports betting. The region's online gambling market was expected to be valued at $94 billion by 2024.

The European Business Review

Founded in 2019 and launching in 2021, Money Line Sports is uniquely positioned in the European and international markets as an enhanced solutions provider operating an infrastructure business for the management of sports and wagering engagement for OTT media streaming & sports wagers. Money Line's sports media platforms provide an enhanced experience for its users through original sports live stream content, premium insights, live odds, and proprietary betting tools and data. Money Line's diverse revenue model includes a subscription-based pay for view model and rapidly growing affiliate marketing business focused on customer acquisition for betting operators in Europe and additional jurisdictions as well as sports and casino wagering.

Money Line will integrate with ZeU's current organization where relevant to generate efficiencies and additional revenue streams through subscription-based sporting events, wagering, and digital transaction fees. Money Line Sports will continue to operate as self-contained business unit with its current management team and employees, under the direction of ZeU Gaming Inc.

Money Line's principal, B. Michael Friedman, will continue to serve as the division's President going forward, integrating his team and infrastructure into ZeU 's existing operations. Mr. Friedman will also serve as an advisor to ZeU's board, bringing his twenty years of mergers and acquisitions experience and extensive banking network to the Company. Through its management and team, Money Line provides leading streaming and licensing partners to engage its customers to build new and improved B2C & B2B processes that align with customers' brands, boost retention, enhance fan interaction, improve ROI, and increase sales and profit margins.

"(…) I am extremely thrilled to join Mr. Dumas and the team from ZeU Technologies through this merger and believe our combined vision to grow ZeU into one of the most recognized names in the gaming and blockchain sector will happen quickly. We both agree that the best way to enhance shareholder value and future stock appreciation is to maintain ZeU's tightly controlled share structure and build substantial cash resources as we move forward with launching our OTT streaming sports platform and licensed wagering technology. Collectively, we are hyper-focused on revenue growth and increasing margins. This is just the beginning, and we are excited to scale both businesses and continue achieving corporate milestones.  I'd like to thank my tremendous team and am looking forward to the next phase of rapid growth with ZeU," stated B. Michael Friedman, Founder of Money Line Sports Inc.

The Money Line transaction is expected to deliver on core strategic priorities of (1) increasing revenue streams to ZeU through subscription-based sports streaming and live wagering technology, (2) expanding the ZeU gaming division through client and media acquisitions, (3) strengthening technology infrastructure, (4) expanding operational geography, and (5) adding experienced executives to the ZeU Management team.

 "The acquisition of Money Line Sports adds immediate strategic and financial value to our existing portfolio of assets making this both a meaningful and synergistic relationship which will allow us to accelerate the creation and monetization of next-generation gaming technology," stated Frank Dumas, CEO of ZeU Technologies, Inc.

The Transaction

Under the terms of the Agreement, all of the assets of MoneyLine will be rolled into a newly incorporated Canadian company, ZeU Gaming Inc. (the "Corporation"). Upon completion of the Agreement, ZeU will acquire 100% of the issued and outstanding shares of Money Line and its US subsidiary (the "Transaction").

The aggregate purchase price payable by the Buyer to the Sellers for the Purchased Shares shall be an amount equal to CDN$1,501,500, which shall be paid and satisfied as follows:

• - CDN$250,000 principal amount of convertible debentures of ZeU Gaming Inc.

  - 1,500,000 non-transferable common share purchase warrants of ZeU Technologies Inc. with each Warrant entitling the holder thereof to acquire one common share of ZeU at a price of  CDN$0.91 for a period of 24 months following the Closing Date.

  - In addition, subject to the completion of the following milestones, ZeU Gaming Inc. will pay up to CDN$1,250,000 in milestones bonuses, which shall be paid and satisfied in principal amount of ZeU Gaming Inc. Debentures as follows:

  • - CDN$250,000 payable upon Money Line's launch of www.Moneylinesports.tv streaming site and live games;

    - CDN$250,000 payable upon Money Line's onboarding the first 5000 active recurring players and subscribers of Money Line streaming sports service;

    - CDN$250,000 payable upon Money Line reaching CDN$250,000 quarterly revenue;

    - CDN$250,000 payable upon Money Line's onboarding an additional 20,000 active recurring players and subscribers (25,000 total) of Money Line streaming sports service;

    - CDN$250,000 payable upon Money Line's onboarding an additional 25,000 active recurring players and subscribers (50,000 total) of Money Line streaming sports service.

The Transaction completion is conditional on several conditions, including completion of a definitive agreement, final due diligence, Money Line minority shareholders' approval, and CSE approval. It is expected to be completed before the end of August 2021.

_____________________________________________________________________________________

ON BEHALF OF THE BOARD OF DIRECTORS

"Frank Dumas"

Frank Dumas
President & CEO

About ZeU

ZeU is a forward-thinking Canadian technology company that has developed a state-of-the-art blockchain protocol, providing the foundation for the next generation of encrypted and distributed networks. Thanks to its high level of sophistication, ZeU's technology maximizes transparency, security and scalability as well as big data management. ZeU's strategy is to monetize blockchain transactions in diverse sectors such as payment, gaming, data, and healthcare.

About MoneyLine

Founded in 2019 and launching in 2021, Money Line Sports is uniquely positioned within the online gaming sector through its unique licensed platform to provide premium streaming sports content and wagering for sports bettors within legal jurisdictions. Money Line's sports media platform provides an enhanced experience for its users through original sports live stream content, premium insights, live odds and proprietary betting tools and data. Money Line's diverse revenue model includes a subscription-based pay for view model and rapidly growing affiliate marketing business focused on customer acquisition for betting operators in Europe and additional jurisdictions as well as sports and casino wagering.

The CSE has in no way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this press release.

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