The deal appears to be an extension of a merger agreement that took place between the two companies in January.
"These transactions will bring SouthPeak public at an opportune moment in the video game industry. We are delighted by investor support we have been receiving for our unique operating model that leverages an expanding universe of game developers to maximize profits and creative potential," said Terry Phillips, Chairman of SouthPeak.
A statement from the publisher read: ‘SouthPeak and GSPAC anticipate that a related institutional financing along with a business consolidation will occur in May 2008, which will value SouthPeak at $35 million and result in the anticipated issuance of 35 million shares to the SouthPeak shareholders.
‘Upon closing of these related transactions, GSPAC will change its name to SouthPeak Interactive Corporation. The existing executive management team of SouthPeak, Terry Phillips and Melanie Mroz, will then become, respectively, Chairman and CEO of the new company.’
SouthPeak also announced that it now expects to exceed its previously announced guidance of $30 million in revenue for its fiscal year ending June 30, 2008, which would represent 140 percent growth year-over-year.