Siyata Mobile (SYTA) M&A Announcement summary

Deal rationale and strategic fit

• The merger combines Siyata's communications technology with Core Gaming's AI-driven mobile gaming expertise, targeting growth in the $126 billion global mobile gaming market.

• Merging with a large-scale company in a multi-billion dollar market is expected to unlock significant shareholder value and provide access to innovative technology.

• The transaction is seen as a huge win, offering shareholders the opportunity to participate in a leading AI-driven gaming company.

• Core Gaming brings strong business fundamentals, a large user base, and advanced AI tools, aligning with Siyata's goal to unlock shareholder value.

• Siyata leadership views the merger as a solution to perceived undervaluation and a path to accelerated growth.

Financial terms and conditions

• Core Gaming is valued at a minimum of $160 million, as determined by a leading U.S. valuation firm, with shareholders receiving Siyata common shares based on this valuation and Siyata's 10-day VWAP prior to closing.

• Siyata shareholders will own at least 10% of the combined company, with a stock dividend to ensure this within six months post-merger.

• Combined revenues are projected to exceed $100 million in 2025, with Core Gaming reporting unaudited 2024 revenues of approximately $80 million.

Synergies and expected cost savings

• No direct operational synergies, but the scale and market reach of the combined entity are expected to drive profitability.

• Core Gaming's AI-driven content generation reduces production times by over 40%, enhancing efficiency.