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New stage in the strategic development of Atari’s blockchain division
Paris, June 7, 2021 – Atari, one of the world's most iconic consumer brands and interactive entertainment producers, today announced a new stage in the strategic development of its Atari Blockchain division.
The Group continues to prioritize the development of NFTs, market places and virtual universes, notably by entering into a new license with CBI (Crypto Blockchain Industries SA), a company founded and led by Frédéric Chesnais, for the development of a blockchain enabled virtual worlds. This adds to licenses already granted to Sandbox and Decentraland and continues Atari’s blockchain growth strategy. Atari SA and CBI have entered into a non-exclusive licensing agreement with an initial term of 3 years, renewable for 2 subsequent terms of 2 years, with a royalty rate of 50% of net revenue generated by the licensed products. Atari also has an option to purchase 5% of the fully diluted equity of CBI at nominal value, once CBI has received financing of at least $1 million from third-parties. CBI is an investment company in the blockchain space and notably intends to develop a virtual world that will integrate the Atari Token for transactions.
In order to avoid any conflicts of interests, Frédéric Chesnais is resigning from the Board of Directors of Atari SA. He will continue to provide consulting services to the licensing business (Atari Gaming division) through a consulting agreement signed in June 2021 with an initial term of 10 months. Frédéric Chesnais will also continue to be involved with Atari Chain Ltd., the subsidiary of Atari SA equally owned by Atari and the ICICB Group, and responsible for the development of the Atari Token.
Wade J. Rosen, CEO stated “Atari is very optimistic about the future of blockchain and we are excited to keep working with Fred to develop an additional virtual world that includes the Atari brand and will benefit both Atari and CBI going forward.”
The internal organization of the blockchain division aims to ensure the continued development of Atari NFTs, as well as to continue to add new diverse use cases, notably in the video game space, through licensing agreements. The option to structure this blockchain division as an autonomous entity with a view to a possible spin-off to Atari shareholders by listing of this new entity is still being evaluated in the same conditions as outlined in the press release of April 6, 20211.
The realization of the plans, and their operational budget and financing plan remain inherently uncertain, and the non-realization of these assumptions may impact their value.
Atari, comprised of Atari SA and its subsidiaries, is a global interactive entertainment and multiplatform licensing group. The true innovator of the video game, founded in 1972, Atari owns and/or manages a portfolio of more than 200 games and franchises, including globally known brands such as Asteroids®, Centipede®, Missile Command® and Pong®. From this important portfolio of intellectual properties, Atari delivers attractive online games for smartphones, tablets, and other connected devices. Atari also develops and distributes interactive entertainment for Microsoft, Sony and Nintendo game consoles. Atari also leverages its brand and franchises with licensing agreements through other media, derivative products and publishing. For more information: www.atari.com and www.atari-investisseurs.fr/en/. Atari shares are listed in France on Euronext Paris (Compartment C, ISIN Code FR0010478248, Ticker ATA), in Sweden on Nasdaq First North Growth Market as Swedish Depositary Receipts (ISIN Code SE0012481232, Ticker ATA SDB) and are eligible for the Nasdaq International program in the United States (OTC - Ticker PONGF).
Crypto Blockchain Industries, SA is a French investment company in the blockchain-based space. The goal is to unlock value by investing in blockchain-based services across multiple industries, either as sole operator, in partnership with co-founders or as financial investors. Investments have already been made, ranging from interactive entertainment to industrial services. Investments will range from modest commitments to multimillion dollar single transaction. CBI works closely with the management teams to identify appropriate investment opportunities.
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This is information that Atari SA is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on June 7, 2021 at 8:00 am CET.
1 See press release dated April 6, 2021 available on https://atari-investisseurs.fr/en/press-releases/