Clover Games' #Me had a successful global launch with over a million downloads.

• Acquisition aims to expand X1 Esports reach into Generation Z demographic and add additional revenue streams
• Tyre’s talent works as a digital influencer management company, specialized in working with YouTube, TikTok and Twitch content creators, brand ambassadors and brands on all social media channels
• Tire’s customer base of over 60 high-profile content creators has a combined reach of over 20 million followers
• Tire has partnered with leading global brands including: Warner Brothers, OMEN, Best Buy, Hello Fresh and Panera to reach the Generation Z demographic of its content creators

X1 Esports and Entertainment Ltd. (CSE:XONE) (“X1” or the “Company”), a video game and video maker portfolio company that owns and operates a growing Esports franchise, is pleased to announce the closing of the previously announced transaction with Tire LLC (“Tyrus “), an influencer management company that authorizes gamers, content creators and influencers (“the Transaction”). Upon closing of the transaction, the company will hold all issued and outstanding securities of Tyrus, which will operate as a subsidiary of X1.

” The Tire transaction presents X1 with a great opportunity to participate in the growing global creator economy, an industry of more than 50 million individual content creators ¹ where Tire is extremely well positioned ” said Mark Elfenbein, CEO of X1 . ” The video games category was a top category of the creative economy and has largely benefited from the growth of the video game industry in recent times.”

In connection with the closing of the transaction, Tyrus’ Manager, Amanda Solomon, will also join the X1 Advisory Board. Amanda is an accomplished leader specializing in gaming and esports, having led brand integration, influencer marketing campaigns and talent partnerships with well-known companies and brands including Epic Games, OnePlus and Gucci.

Since 2017, Tire has built a customer base of over 60 high-profile content creators (iambrandon, Catiosaurus, Kalief (Spawn on Me) & Friskk) with a combined reach of over 20 million followers ² . Offering comprehensive management of YouTube, TikTok, Twitch and other social media channels, as well as advice on personal brand growth strategies and partnership management, Tire has grown from a roster of seven talents to August 2022 with a roster of 65 talents since April 2021.

“Being part of the X1 family will allow Tire to expand its reach and appeal to new and exciting talent in the gaming and esports community,” said Amanda Solomon, Tire CEO. “The talent and diversity of our influencer roster is something we are very proud of. I look forward to expanding our presence in this space and providing unique access for global brands to a highly influential GenZ audience.”

Transaction conditions

Subject to the terms of a membership interest purchase agreement dated July 15, 2022, the Company acquired 100% of Tire’s issued and outstanding membership interest for a total consideration of up to approximately US$350,000 (the “Purchase Price”). The Purchase Price is divided into the following payments: i) US$150,000 in cash payments due within 60 days of closing; and ii) 555,555 fully paid-up common shares in the capital of the Company at an assumed issue price of $0.45 per common share, which were issued at the closing of the Transaction. In addition, a bonus payment of US$100,000 may be paid when Tire reaches US$1,750,000 in its first full year of income, which may be settled in cash or common stock at the option of the Company.

The Ordinary Shares forming part of the Purchase Price are subject to a statutory retention period of four months and one day from the date of issue, and a contractual resale restriction resulting in 25% of the Ordinary Shares being retained twelve (12) months after the closing date, and 25 % will be released at six (6) month intervals thereafter.

The securities of the Company referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the “US Securities Act”), or any state securities laws. Accordingly, the Company’s securities may not be offered or sold within the United States unless registered under the US Securities Act and applicable state securities laws or under an exemption from the registration requirements of the US Securities Act and applicable state securities laws . This press release does not constitute an offer to sell or a solicitation of an offer to purchase securities of the Company in any jurisdiction where such offer, solicitation or sale would be unlawful.

For more information, please contact:

Mark Elfenbein
CEO and director
info@X1Esports.com
www.X1Esports.com

About X1
X1 Esports and Entertainment Ltd. is a video game and media portfolio company that owns and operates a growing esports franchise, RixGG. The company’s business is the competitive playing of video games by teams for cash prizes, and supporting activities in such competition, such as merchandising and tournament hosting.

For more information about the company, please visit www.X1Esports.com or email info@X1Esports.com.

About Tire
Tyrus, and its talent services, is a boutique talent management group for digital content creators. In particular, we partner with creators in the gaming and lifestyle industries, providing creators with paid opportunities, from free game codes to live show bookings and paid partnerships around the world. We also offer more integrated services such as social media management, platform management, video editing and short content editing. Simply put, Tire supports our maker’s business with expert knowledge and management of partnerships and activations with major companies.

Forward-looking information
All information in this press release regarding the Company and Tire has been provided by the parties for inclusion herein, respectively, and the Company and its respective directors and officers have relied on Tire for all information regarding such party.

Certain information in this press release may contain forward-looking statements that involve significant known and unknown risks and uncertainties. Forward-looking statements are often referred to by terms such as “will”, “may”, “would”, “anticipate”, “expect” and similar expressions. All statements other than statements of historical fact included in this press release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and that actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include non-compliance with the terms of the relevant stock exchange(s) and other risks disclosed from time to time in the Company’s filings with the securities regulations. The reader is cautioned that assumptions used in preparing forward-looking information may prove incorrect. Events or circumstances could cause actual results to differ materially from those projected due to numerous known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control. The reader is cautioned not to place undue reliance on forward-looking information. Such information, while considered reasonable by management at the time of preparation, may prove to be inaccurate and actual results may differ materially from those anticipated. Forward-looking statements in this press release are expressly qualified by this cautionary statement. The forward-looking statements in this press release are made as of the date of this press release and the company disclaims any intent or obligation to update or revise such information, except as required by applicable law.

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