/EINPresswire.com/ -- ALISO VIEJO, CALIFORNIA -- (Marketwired) -- 02/01/16 -- Fantasy Aces Daily Fantasy Sports Corp. (the "Corporation" or "Fantasy Aces") (TSX VENTURE: FAS)(OTC PINK: FASDF) is pleased to announce the unaudited operating results for the year ended December 31, 2015. In October 2015, the Corporation completed the merger with DraftTeam Daily Fantasy Sports and the results below include the combined operations for the year.

Financial Results

During the year ended December 31, 2015, Fantasy Aces earned revenue from contests completed of $1,629,000. This is an increase of 650% from 2014. In addition, prize payouts totaled more than $17,900,000 during the year, an increase of over 620%. During the year, Fantasy Aces saw its member base increase by more than 265% as compared to 2014. The Corporation has a current working capital deficit of $3,475,000. These financial results are based on management's estimates and have not yet been approved by the Corporation's Audit Committee or Board of Directors or reviewed by the Corporation's auditors. The Corporation expects to release its full financial results for the year ended December 31, 2015 in the near future.

The 2015 NFL season was very successful in terms of all the important metrics for the Corporation. Revenues for the fourth quarter in all sport categories combined was up over 468% when compared to 2014, and prize payouts increased by 400% compared to the same period in 2014. In addition, the Corporation has seen its NBA related revenues and payouts both increase by more than 370% from the start of the 2015 NBA season as compared to 2014 during the same time period.

These results were obtained in spite of the macro issues the industry has faced during the last few months. The Corporation expects to continue with this impressive growth through 2016 and beyond

2016 Outlook

Fantasy Aces is in the process of completing a restructuring of operations which it expects will provide significant changes in:

--  Reduction of operating costs - the Corporation has reduced all of its
    general operational costs relating to rent, general overhead, etc.
--  Reduction of player acquisition costs - to date the Corporation has had
    to attract and retain users at a proportionally high acquisition cost.
    Those costs are being vividly reduced through improved promotional
    techniques and the strength of the Company's brand which attracts
    measurably higher organic user attraction than previously. In addition,
    the Corporation has taken steps in the last two operating months of
    dramatically lowering overlay, while increasing operating gross margins
--  Marketing Partnership - Fantasy Aces is pleased to announce the signing
    of a strategic marketing partnership with a national media partner. This
    partner will provide a wide range of promotional and marketing services
    attracting a wide range of new sports minded users to the Corporation's
    nationally recognized site. Encompassing digital, and audio/radio
    broadcast media the expected result will greatly enhance Fantasy Aces'
    footprint within the Daily Fantasy Sports space.

A notably significant part of this agreement reflects the partner's assenting to subscribe for common shares of the Corporation to settle the costs of the all media programs, in conjunction with the private placement outlined below.

Private Placement

Fantasy Aces has also determined that in order to continue with the impressive growth that was obtained in the prior year, the Corporation will need to obtain additional financing. In addition to the financing, which is detailed below, the Corporation has applied to the TSXV to settle certain of their liabilities for shares in the corporation. The Corporation intends to complete a non-brokered private placement for minimum proceeds of $1,000,000 and maximum proceeds of $1,250,000. The financing will be done at a price of $0.025 per share. The proceeds from this placement will be used for general working capital purposes.

Depending on demand and regulatory requirements, a portion of the Offering may be made in accordance with the provisions of the existing shareholder exemption (the "Existing Shareholder Exemption") contained in Multilateral CSA Notice 45-313 and the various corresponding blanket orders and rules of participating jurisdictions (the Existing Shareholder Exemption is not available in Ontario or Newfoundland and Labrador). In addition to conducting the Offering pursuant to the Existing Shareholder Exemption, the Offering will also be conducted pursuant to the Advised by Investment Dealer Exemption and other available prospectus exemptions, including sales to accredited investors, family and close personal friends and business associates of directors and officers of the Company.

The Company has set February 1, 2016 as the record date for the purpose of determining existing shareholders entitled to purchase shares pursuant to the Existing Shareholder Exemption. Subscribers purchasing Units under the Existing Shareholder Exemption will need to represent in writing that they meet certain requirements of the Existing Shareholder Exemption, including that they were, on or before the record date, a shareholder of the Company (and still are a shareholder). The aggregate acquisition cost to a subscriber under the Existing Shareholder Exemption cannot exceed $15,000 unless that subscriber has obtained advice from a registered investment dealer regarding the suitability of the investment. There is no minimum subscription amount. If subscriptions received for the Offering based on all available exemptions exceed the maximum Offering amount of $500,000, Units will be allocated pro rata amongst all subscribers qualifying under all available exemptions.

The securities issued in connection with the Offering will be subject to a hold period expiring four months and one day from the date of issuance of such securities.

The Corporation also intends to complete a private placement of debentures up to an amount of $200,000. The Corporation reserves a conversion price of $0.05 per Common Shares pursuant to the Debentures (or such higher price as mandated by the TSXV).

This Debenture will accrue interest at 24% annually and will have a term of 1 year from the closing date. This Debenture and accrued interest may be converted into Common Shares at any time by the request of the holder.

A finder's fee of cash, Common Shares or Warrants, or a combination thereof, may be paid to eligible finders with respect to any portion of the Offering that is not subscribed for by existing shareholders.

Shares For Debt Settlement

In addition to the private placement the corporation is applying to the TSXV to settle certain liabilities of the company with the issuance of common shares. It is expected that approximately $600,000 to $1,100,000 liabilities will be settled through the issuance of common shares. It is expected that this will be done concurrently with the above noted private placement.

It is expected that if the maximum financing is completed and the shares for debt is completed there will be approximately 143,000,000 shares outstanding. In addition, there are approximately 57,500,000 convertible units outstanding.

There is no material fact or material change in the affairs of the Company which has not been general disclosed.

About Fantasy Aces

Fantasy Aces is a leading DFS (Daily Fantasy Sports) site focused on everyday skill-based fantasy sports games. Fantasy Aces has developed proprietary software which allows users to create fantasy teams from the player rosters of actual sports leagues and then use their teams to compete against other users in various categories such as points scored, yards gained, goals, assists or home runs registered, depending on the specific sport. The FantasyAces.com website currently offers daily and weekly skill based fantasy sports games for six major North American sports, including the NFL, NBA, NHL, MLB, College Football and the PGA. Fantasy Aces also offers a variety of entry fee contest options for its members to play, in addition to free roll tournaments to attract new members to the site. Fantasy Aces charges a management fee from all entry fees collected on the website.

Reader Advisory

Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including the impact of general economic conditions, industry conditions, currency fluctuations,, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. Although the Corporation believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Corporation does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Trading in the securities of Fantasy Aces Daily Fantasy Sports Corp. should be considered highly speculative.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contacts:
Fantasy Aces Daily Fantasy Sports Corp.
Tom Frisina
Chief Executive Officer
(805) 565-7850
tom@fantasyaces.com

Fantasy Aces Daily Fantasy Sports Corp.
Dave Antony
Director
(403) 531-1710
dave@fantasyaces.com

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