PlayUp’s woes continue with collapse of SPAC deal with IGAC

PlayUp NASDAQ listing failed
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In September PlayUp and IG Acquisition Corp (IGAC) announced a deal that would result in PlayUp going public on NASDAQ. However, now IGAC is pulling out of the deal.

In a Form 8-K filed with the US Securities and Exchange Commission, IGAC stated:

“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 “Charter”). Accordingly, IGAC will dissolve and liquidate pursuant to the terms of the Charter, effective as of the close of business on January 11, 2023, and will redeem all of the outstanding shares of Class A common stock that were included in the units issued in its initial public offering (the “Public Shares”), at a per-share redemption price of approximately $10.12 after taking into account the removal of a portion of the accrued interest in the trust account to pay taxes and for dissolution expenses.”

The deal, which valued PlayUp at $350 million was supposed to go through this quarter, with IAGC entering into a $70 million standby equity purchase. IGAC is led by venture capitalist and former Illinois Deputy Governor Bradley Tusk. Tusk also co-founded Ivory Gaming Group in 2015 in addition to leading the special purpose acquisition company (SPAC) created for this deal.

“Currently, there is no platform that allows consumers to access every type of betting product through one single sign on. Generally, industry competitors have chosen to focus on one product or another. IGAC and PlayUp have the same shared vision: to bring the global online betting industry the most comprehensive suite of traditional and innovative betting products from all over the globe together into one app. The transaction is expected to provide PlayUp with access to fresh capital to continue expanding its vision of a true single destination for the future of online betting,” Christian Goode, Chief Executive Officer of IGAC said in September when the deal was announced.

The deal collapse is the latest in a string of headline-making news for PlayUp. The company was initially found the company unsuitable for an Ohio gaming license after the state regulators found what they deemed to be illegal gambling happening under the company name. PlayUp plans to appeal the decision

PlayUp is also still dealing with the potential fallout related to the investment from embattled crypto company FTX.