DeepMarkit Closes Acquisition of Prospect Prediction Markets and Initial $1.53 Million Private Placement

DeepMarkit closed its acquisition of blockchain-based Prospect Prediction Markets, issuing ~9.999M shares at a deemed $0.06 per share (transaction value $600,000) and completed the first tranche of a non‑brokered private placement of 25.583M shares at $0.06 for gross proceeds of ~$1.53M, with a second close expected by Nov. 25, 2025. Prospect brings a free‑to‑play, Avalanche‑based sports prediction platform and Trevor Broad has been appointed CTO and director; proceeds are earmarked to repay debt (including deferred management salaries), pay $50k to Prospect Labs, develop and market the platform and for general corporate purposes. The deal includes contingent earn‑outs tied to MAU milestones ($50k/250k/500k) and four‑month statutory hold periods on issued securities, has conditional TSXV approval, and represents a modest capital raise and equity dilution that nonetheless positions DeepMarkit to enter sports engagement/blockchain gaming while leaving material upside dependent on user growth and milestone achievement.

Analysis

DeepMarkit announced the closing of its acquisition of Prospect Prediction Markets, issuing 9,999,993 DeepMarkit shares at a deemed $0.06 per share (transaction value $600,000) and completing a first tranche non-brokered private placement of 25,583,332 shares at $0.06 for gross proceeds of $1,534,999, with a second and final closing expected on or before November 25, 2025. All newly issued securities are subject to statutory hold periods of four months and one day, and the transaction has conditional TSXV approval.

Prospect contributes a free-to-play, Avalanche-based sports prediction platform and management depth with Trevor Broad appointed CTO and director; Prospect completed an internal reorganization transferring fantasy sports software, IP and brand assets to the deal. Proceeds are earmarked for repayment of existing debt including deferred management salaries, a $50,000 payment to Prospect Labs, platform development and marketing, and general corporate purposes.

The deal provides immediate liquidity and a technology entry into sports engagement/blockchain gaming but is modest in size and dilutive given the ~10M shares issued to Prospect plus ~25.6M placement shares; material upside is contingent on achieving MAU-based earn-outs ($50k at 50,000 MAUs, $250k at 250,000 MAUs, $500k at 500,000 MAUs) and successful integration. Key near-term risks are execution of platform development, realization of user growth milestones, dependency on the second closing, and the usual forward-looking uncertainties noted in the press release.

Key Decisions for Investors

• Monitor monthly active user (MAU) trends and milestone progress (50k, 250k, 500k) as the primary trigger for material upside and contingent payments, and avoid increasing exposure until sustained user-growth is demonstrated
• Await confirmation of the second private placement closing on or before Nov. 25, 2025 and transparency on net proceeds deployment (debt repayment versus product development) before reassessing the company’s liquidity and runway
• Treat this as a strategic technology acquisition with execution risk; consider sizing positions conservatively or using hedges until integration milestones under new CTO Trevor Broad are met
• Factor in equity dilution from the ~10M issuance to Prospect and ~25.6M placement shares when modeling per-share recovery and stress-test scenarios where MAU targets are not achieved