Bidstack Group Plc announces that it has entered into non-binding heads of terms in respect of a proposed commercial partnership with Virtual Sport Technology Limited (?VST?), a sports marketing agency, for a multi-year licensing agreement (?the Heads?). The definitive agreement following from the Heads (?the Agreement?), subject to contract, would be intended to accelerate Bidstack's positioning as a technology provider with marketing and sales being outsourced to specialist suppliers. The Company expects to sign the Agreement as soon as practicable; at which point a further announcement will be made.

Sports leagues and teams have long been identified as enterprise customers of Bidstack's platform. Until now, Bidstack and its competitors have been unable to monetise sports games within a fully licensed virtual stadium or track due to restrictions from official sponsors. By placing control of brand activations in the hands of relevant leagues and teams, these virtual stadiums or tracks become available to the owners of their real life counterparts.

Bidstack would act purely as the technology provider, empowering sports teams and leagues to reach fans within their virtual stadiums or tracks with a level of targeting and flexibility that has not been possible before. The main provisions of the Heads agreed with VST are as follows: Bidstack would provide VST worldwide third party exclusivity to provide access to Bidstack's proprietary video game content management platform to rights-holders including sports leagues, teams and publishers for an initial term of three years with a further three year extension mutually available; VST would pay Bidstack a licence fee of £1.5 million (two equal instalments of £0.75 million paid quarterly in advance); Bidstack would provide certain support services to VST in consideration of a quarterly service fee of £45,000; and Bidstack would capture upside of the growth potential through retaining a revenue share of 70%. As part of these arrangements, certain Bidstack employees would transfer their employment to VST with the consequent cost saving to Bidstack.