Elite Data Services Inc. (OTCBB:DEAC) entered into a non-binding letter of intent to acquire properties of Merit Inc. on March 10, 2016. Elite Data Services Inc. (OTCBB:DEAC) entered into a definitive agreement to acquire properties of Merit Inc. on May 20, 2016. The letter of intent represents the Elite Data and properties of Merit's mutual intentions to complete the necessary due diligence to negotiate a definitive agreement, anticipated to be completed on or before April 15, 2016. Under the terms of the definitive agreement, the transaction will be closed in three tranches; on or before May 27, 2016 Elite Data would acquire 20% interest in properties of Merit by transferring 4 million shares of properties of Merit in exchange of 0.1 million series B preferred stock of DEAC shares; on or before July 1, 2016 Elite Data would acquire 20% interest in properties of Merit by transferring 4 million shares of properties of Merit in exchange of 0.1 million series B preferred stock of DEAC shares; on or before October 1, 2016 Elite Data would acquire remaining 60% interest in properties of Merit by transferring 12 million shares of properties of Merit in exchange of 19.8 million series B preferred stock of DEAC shares. Anthony M. Santos of am santos law, chtd. acted as legal advisor and escrow agent to Properties of Merit. Elite Data Services Inc. (OTCBB:DEAC) cancelled the acquisition of properties of Merit Inc. on July 22, 2016.