NEW YORK – Treasure Global Inc (NASDAQ: TGL), a prominent technology solutions provider, announced today its intention to acquire 100% of the shares of Who Knows Wins Ltd, a UK-based online social sports platform.
The strategic move is aimed at expanding Treasure Global’s presence in the US market and is in line with the company’s objective of utilizing innovative technologies to enhance revenue growth and market expansion.
Who Knows Wins, recognized for its unique and robust proprietary technology platform, operates a social sports game that allows users to predict the outcomes of various sporting events.
The platform boasts over 65,000 registered users and offers features such as real-time scores, live sports data feeds, and integration with social platforms. It also provides valuable first-party data collection, offering deep audience insights and a cost-effective way to convert passive fans into active users.
The acquisition is expected to strengthen Treasure Global’s position in the gaming technology space, providing advanced tools for clients and enhancing the company’s overall service offering. Who Knows Wins has already established a strategic partnership with GolfNow LLC, a subsidiary of NBC, for a golf app that includes sponsored leagues and additional functionality.
This development comes at a time when the sports technology market is experiencing significant growth. The market is projected to expand at a CAGR of 20.8% from 2023 to 2030, driven by an increasing demand for interactive fan experiences and the digital transformation of sports venues.
Carlson Thow, CEO of Treasure Global, expressed confidence in the acquisition’s potential to complement the company’s strategic roadmap and deliver exceptional value to stakeholders and clients. The company is also actively seeking additional accretive acquisition opportunities to further its growth.
Treasure Global, based in Malaysia, is known for its innovative technology platforms, including the ZCITY App, which offers a digital ecosystem for e-payments and rewards, and TAZTE, a digital food and beverage management system. As of May 5, 2024, the ZCITY App has amassed over 2.7 million registered users.
The acquisition is subject to customary closing conditions and regulatory approvals. This press release contains forward-looking statements and potential investors are cautioned that actual results may differ materially from those projected.
The information in this article is based on a press release statement from Treasure Global Inc.
In other recent news, Treasure Global Inc has seen significant changes and developments. The company’s 2024 Annual Stockholders Meeting resulted in the election of five nominees to its Board of Directors and the ratification of WWC, P.C. as its independent registered public accounting firm for the fiscal year ending June 30, 2024.
In a major shift, Carlson Thow was appointed as the new Chief Executive Officer following the resignation of former CEO, Sam Teo. Thow is expected to guide the company towards sustainable growth and innovation, building on his substantial experience from his previous role at VCI Global Limited. His employment agreement includes a compensation of $120,000 worth of shares of common stock of the company, allocated monthly during his first year.
Furthermore, Treasure Global has successfully regained compliance with Nasdaq’s shareholder approval requirements, following a corrective action by former CEO, Chong Chan Teo.
This corrective measure involved adjusting the price per share of a previous issuance, which had led to non-compliance due to a share issuance at a discount to settle debt. These are among the recent developments at Treasure Global Inc.
InvestingPro Insights
Treasure Global Inc’s (NASDAQ: TGL) ambitious move to acquire Who Knows Wins Ltd aligns with its vision to leverage technology for growth and market expansion. However, a glance at the company’s financial health through InvestingPro data and metrics reveals a mixed picture that stakeholders may want to consider.
InvestingPro Data shows a challenging financial landscape for Treasure Global. With a market capitalization of just 3.65 million USD, the company’s revenue has declined significantly by 47.39% over the last twelve months as of Q3 2024. This contraction is further highlighted by a quarterly revenue decline of 91.21% in Q3 2024, indicating potential headwinds in the company’s operations.
The gross profit margin stands at a low 2.15%, underscoring the concerns raised by one of the InvestingPro Tips about weak gross profit margins. This is a crucial metric, as it reflects the company’s ability to control its cost of goods sold and manage its production efficiency—factors that are vital for profitability and competitiveness in the technology solutions sector.
In terms of stock performance, the price has experienced a significant drop of 95.7% over the last year, which aligns with another InvestingPro Tip indicating that the stock has fared poorly over the last month. This trend could be a red flag for investors looking for stable growth prospects.
For readers interested in a deeper dive into Treasure Global’s financials and future outlook, InvestingPro offers additional insights. Currently, there are 15 more InvestingPro Tips available that could provide a more comprehensive understanding of the company’s position and potential trajectory. To access these insights, consider using the coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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