IG Acquisition Corp. calls off $350 Million deal with PlayUp

PlayUp’s $350 million deal with IG Acquisition Corp. (IGAC) has been called off. This was revealed via a document filed with the US Securities and Exchange Commission by a special purchase acquisition company (SPAC) on Friday.

If the deal had pulled through, it would have made the Australian-based gaming company a publicly traded firm and placed its stock on the Nasdaq exchange. In an 8-K filing, IGAC stated that PlayUp was previously notified of the cancelation of the business combination agreement (BCA) agreed on in September 2022.

“On January 6, 2023, IGAC provided written notice (the “Termination Notice”) to the Company, Parent and Merger Sub that it was terminating the BCA pursuant to Section 9.01(e) of the BCA effective immediately,” the filing read.

“The Termination Notice also served as written notice to the Company and Parent that IGAC was terminating the SID pursuant to clause 11.1(d) of the SID effective immediately.”

The 8-K filing continued, “The board of directors of IGAC has determined that IGAC will not be able to complete the transactions contemplated by the BCA or any other initial business combination within the time period required by its Amended and Restated Certificate of Incorporation, as amended.”

The filing further stated that the IGAC would be shuttered on Wednesday, January 11, 2023.

The companies started having issues concerning the deal late last year. On December 8, IGAC announced that the agreement was amended due to PlayUp’s inability to deliver the company’s audited financial statements as well as other documents at the set time.

The new provision in the agreement allowed IGAC to select another business partner; however, the organization had little luck in that regard.

The “business combination agreement” between PlayUp and IGAC was first announced in September 2022. According to IGAC officials, it had taken them two years to find a sports betting company that had the potential to achieve long-term success.

IGAC’s chairman, venture capitalist Bradley Tusk said as much in that period, calling PlayUp the “closest to achieving our shared vision for the future of online betting.” A crucial part of their vision included creating a system where several online gaming products were made available on a single app and wallet that could be accessed in markets of locations with gaming licenses.

If the deal had been successful, Tusk would have assumed the position of PlayUp’s board chairman. The CEO of IGAC, Christian Goode, would have been the gaming company’s US decision president. The duo founded the Ivory Gaming Group in 2015 and, half a decade later, established IGAC. The company has raised $300 million in its IPO so far.

PlayUp has encountered several issues since it started making efforts to grow its U.S. footprint. The gaming company is licensed to operate in the states of New Jersey and Colorado. PlayUp offers sports betting in both and iGaming in only New Jersey.

Despite its success in other states, PlayUp still faces some difficulty getting a sports betting license in Ohio after it was accused of offering illegal gaming products by regulators in the state.

The online gaming operator has requested a hearing concerning the issue, and the Ohio Casino Control Commission will rule on its license application after the hearing judge release their report.

Early last year, PlayUp attempted to negotiate a $450 million sale to cryptocurrency exchange operator FTX. The transaction failed, but PlayUp succeeded in making FTX invest $35 million in the company in January 2022.

The failed deal led to legal battles within the company. Dr. Laila Mintas, PlayUp’s US CEO at the time, was sued and accused of intentionally obstructing the deal; however, Mintas launched a countersuit. Both cases are ongoing in a Nevada federal court.

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