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VANCOUVER - Siyata Mobile Inc. (NASDAQ: SYTA), a developer and vendor of Push-to-Talk over Cellular (PoC) handsets with current revenue of $11.99 million and 41.59% year-over-year growth, has entered a definitive merger agreement with Core Gaming, Inc., a Delaware-based gaming developer and publisher. According to InvestingPro data, Siyata currently operates with a market capitalization of $1.88 million and faces significant operational challenges. The merger, announced today, will result in Core Gaming becoming a wholly-owned subsidiary of Siyata, with the transaction expected to close in the second quarter of 2025.
Under the terms of the agreement, Core Gaming will be valued at $160 million, and its shareholders will receive Siyata common shares based on an exchange ratio tied to Siyata’s stock performance. The deal comes at a time when Siyata trades at a price-to-book ratio of 0.33, suggesting a relatively low valuation multiple. For deeper insights into Siyata’s valuation metrics and 17 additional key ProTips, consider accessing the comprehensive analysis available on InvestingPro. Siyata’s current CEO, Marc Seelenfreund, will transition to President and head a new PoC subsidiary, while Core Gaming’s CEO, Aitan Zacharin, will lead the combined entity. The board of the merged company will include Seelenfreund and four directors from Core Gaming.
The merger aims to capitalize on Core Gaming’s $80 million revenue in 2024 and its strong position in the mobile gaming industry, which is valued at $126 billion globally. Core Gaming boasts over 2,000 mobile games, 40 million monthly active users, and advanced AI-driven technology that has led to increased efficiency and content production.
Siyata’s leadership believes the merger with Core Gaming offers shareholders value and growth potential, given Core Gaming’s business fundamentals and market position. Legacy Siyata shareholders are assured a minimum of 10% ownership in the combined entity through a stock dividend within six months post-merger.
Both companies’ boards have unanimously approved the merger, which now awaits regulatory approval and the fulfillment of standard closing conditions. With an EBITDA of -$12.84 million and significant cash burn rate, this merger could represent a crucial strategic pivot for Siyata. A virtual press conference is scheduled for today at 4:05 pm ET to discuss further details of the merger. This announcement is based on a press release statement. Detailed financial analysis and the complete Pro Research Report for SYTA are available on InvestingPro, offering professional-grade insights for informed investment decisions.
In other recent news, Siyata Mobile Inc. announced a significant order from a major transit authority in the western United States, which will involve supplying several thousand SD7 handsets and accessories. This order marks a transition from traditional radio-based systems to Siyata’s Push-to-Talk over Cellular technology, aiming to improve communication reliability for transit operations. Additionally, Siyata Mobile’s SD7 Ultra device has been integrated into T-Mobile’s initiative to enhance communication tools for first responders, providing mission-critical push-to-talk capabilities on a 5G network. In a strategic move, Siyata has also entered a distribution agreement with IP Access International to provide rugged devices for industries such as fire departments and mining, utilizing the SuperGIG™ network for robust connectivity. The company has deferred a planned press conference to focus on these business opportunities, with CEO Marc Seelenfreund emphasizing the importance of these developments. These recent activities reflect Siyata’s ongoing efforts to expand its market presence in critical communication sectors.
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