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, innovative company is expected to unlock significant shareholder value and address challenges faced as a small public company.

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

• The transaction allows shareholders to participate in a leading AI-driven gaming company with global reach.

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

Financial terms and conditions

• Siyata shareholders will own at least 10% of the combined company, with a stock dividend within six months post-merger and potential for a higher percentage depending on share price at closing.

• Core Gaming is valued at a minimum of $160 million, based on a fairness opinion and share exchange formula.

• Core Gaming reported unaudited 2024 revenues of approximately $80 million.

• Combined revenues are projected to exceed $100 million in 2025, with expectations of achieving profitability.

Synergies and expected cost savings

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

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