Atari announces the termination of its relationships with Crypto Blockchain IndustriesSource: OMX
Atari announces the termination of its relationships with Crypto Blockchain Industries
Paris, March 30, 2022 – Atari, SA and its affiliates (the “Atari Group”) and Crypto Blockchain Industries S.A. (“CBI”) and former Atari’s CEO Frédéric Chesnais, and their affiliates (collectively, the "Parties"), have entered into a binding agreement to formalize their separation (the "Agreement").
The Agreement provides for the immediate termination of the Multiverse license for the use of Atari Group intellectual property in the CBI Metaverse entered between them on June 4, 2021 (the “License”).
CBI and Atari Group have also agreed to cancel a warrant for 5% of the equity of CBI that had been issued to Atari Group as part of the License, it being noted that Atari had not booked any anticipated minimum guaranteed revenue related to the License and/or the underlying warrant, so that the termination will have no material financial impact on the Atari Group. CBI will transfer 3,500,000 shares of Atari, SA to the Atari Group and pay a lump sum of $114,000 to settle various charges.
Both Atari and CBI / Mr. Chesnais have respectively agreed not to own, nor acquire, any security issued by the other party for a period of five (5) years as from March 29 2022 (directly or indirectly or through any of their respective affiliates).
Regarding the say on pay with respect to the variable compensation of Mr. Frédéric Chesnais, Mr. Frédéric Chesnais will transfer 15 million Atari (ATRI) tokens that he owns back to Atari Group. In addition, Atari has agreed to convene a shareholders' general meeting no later than on September 30, 2022, and present a resolution relating to the approval of the fixed, variable and exceptional elements forming the total compensation and benefits of any kind paid or granted to Mr. Frédéric Chesnais, for his position as Chief Executive Officer for the financial year ended March 31, 2021, with the support of Mr. Wade Rosen.
Notwithstanding the settlement of all claims, it has more generally been mutually agreed that the Parties to the Agreement shall coexist on the relevant markets where they shall be peaceful competitors (including but not limited to the metaverse), including for each party to refrain from any direct or indirect interference with the business of the other party, including its equity transactions, existing licenses or business arrangements.
The entering of this Agreement will allow the Parties to focus further on their respective operational priorities.
Atari, comprised of Atari SA and its subsidiaries, is a global interactive entertainment and multiplatform licensing group. The true innovator of the video game, founded in 1972, Atari owns and/or manages a portfolio of more than 200 games and franchises, including globally known brands such as Asteroids®, Centipede®, Missile Command® and Pong®. Atari makes attractive online games for smartphones, tablets and other connected devices. From this significant portfolio of intellectual property Atari also develops and distributes interactive entertainment for Microsoft and Sony. Atari also leverages its brand and franchises with licensing agreements through other media, derivative products and publishing. For more information: www.atari.com and www.atari-investisseurs.fr/en/. Atari shares are listed in France on Euronext Paris (Compartment C, ISIN Code FR0010478248, Ticker ATA), and are eligible for the Nasdaq International Program in the United States (OTC Compartment - Ticker PONGF).
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