Mr. Steve Budin reports

KINGS ENTERTAINMENT ANNOUNCES DISPOSITION AND NEW BUSINESS FOCUS

Kings Entertainment Group Inc. has entered into a share purchase agreement dated Dec. 7, 2023, with PM Legacy Inc., a private Ontario corporation, pursuant to which PM Legacy has agreed to acquire the entirety of the company's on-line lottery and casino business through the acquisition of all of the outstanding shares of the company's wholly owned subsidiaries, Legacy Eight Curacao NV, Azteca Messenger Services SA de CV and Phoenix Digital Services Ltd., in exchange for cash consideration of $175,000.

The company is proceeding with the disposition subsequent to the closing of its acquisition of Braight AI Technologies Inc., as previously announced in its press release of July 17, 2023, to focus its business on artificial intelligence big data analytic solutions.

Steve Budin, chief executive officer of the company, commented, "With the exciting acquisition of Braight AI and all of our efforts and resources being redirected toward the artificial intelligence sector, it made sense to move away from the lottery space and focus all of our attention on our new direction."

The disposition is an arm's-length transaction, and is subject to the terms and conditions as set forth in the share purchase agreement, which are customary for transactions of this nature, including, among other things, the approval of the company's shareholders and the approval of the Canadian Securities Exchange. The company intends to obtain shareholder approval by way of consent resolution.

If completed, the disposition will constitute a change of business of the company, as such term is defined in exchange policies. As required by such policies, the company intends to file a Form 2A (Listing Statement), providing additional disclosure on its AI business. Furthermore, in due course and assuming completion of the disposition, the company intends to change its name to Braight AI Holdings Inc. under the Business Corporations Act (British Columbia) or such other name as management deems advisable.

The share purchase agreement provides that if, for a 36-month period following closing of the disposition, PM Legacy (or any affiliate or related person thereof) completes any sale, partial or otherwise, of the subsidiaries or the assets thereof to an arm's-length party, the company will be entitled to 10 per cent to 20 per cent of the total consideration received therefor, depending on when such sale is completed.

Trading halt

In accordance with exchange policies, trading in the company's shares will be halted as a result of this announcement and will remain halted until resumption of trading is approved by the exchange.

Additional information

The company will issue additional press releases related to the disposition and other material information as it becomes available. There can be no assurance that the disposition will be completed as proposed or at all.

We seek Safe Harbor.