PlayUp Acquisition By SPAC To Go Public Terminated

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Discussions between IG Acquisition Corp and online gaming operator PlayUp are now terminated, the SPAC announced Friday.

This outcome is not entirely a surprise given IGAC’s filing in December. The SPAC said there was a delay in getting the audited financial results for PlayUp and that the two companies were no longer in exclusive talks.

This is the latest challenge for PlayUp, which has been on a bit of a rollercoaster since late 2021.

Not first failed acquisition of PlayUp

This is the second acquisition of PlayUp that has failed to happen. The first was a reported $450 million offer in 2021 from FTX, the shamed crypto exchange that has had plenty of problems of its own.

That deal was never closed, though, as multiple parties tied to the company placed blame on others.

The company then announced in July 2022 that its US business was back up for sale after the company underwent a strategic review. Two months later, IGAC announced its intentions to take the operator public, albeit at a lower cost of $350 million.

IGAC did not receive necessary info

PlayUp had an Oct. 31 deadline to provide IGAC with financial statements despite repeated requests for the information, according to the SEC filing.

The operator also failed to give IGAC a first draft of its Parent Registration Statement, which also should have included audited financial statements.

“The aforementioned Terminating Company Breaches have caused undue delay and are not capable of being cured in a manner that would permit the Closing to occur by the End Date and, therefore, no cure period in respect of the Terminating Company Breaches applies.”

PlayUp still facing Ohio violation

It is unclear what the future holds for PlayUp at this point, given the chance that it may be denied a sportsbook license in Ohio.

The Ohio Casino Control Commission announced at a December meeting that the operator received a notice of intent to deny a mobile betting license based on illegal gambling activity in the state.

That was tied to its Slots+ product, which used horse racing results instead of random number generation for payouts.