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Betting on Gaming Stocks Podcast Episode 4: News from (OTCQB: WINR), (TSX: EGLX) (OTCQB: ENGMF), (CSE: GSQ) and (TSX: NVEI)

The Gaming: Watching stock news, deal tracker and advancements in gaming

 

Point Roberts, WA and Delta, BC - November 25, 2020 (Investorideas.com Newswire) Investorideas.com, a global investor news source releases today's edition of the Betting on Gaming Stocks Podcast, featuring gaming, casino and e-sports stock news from TSX, TSXV, CSE, ASX, NASDAQ, NYSE companies plus interviews with CEO's and leading experts.

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Betting on Gaming Stocks Podcast Episode 4: News from (OTCQB: WINR), (TSX: EGLX) (OTCQB: ENGMF), (CSE: GSQ) and (TSX: NVEI)

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Transcript

In today's episode of Investorideas "Betting on Gaming Stocks" Podcast we look at a few public company announcements.

Simplicity Esports and Gaming Company (OTCQB:WINR) announced that it has acquired three additional franchisee owned esports gaming centers, two of which are in Texas, and one in Montana. These gaming centers, combined with other acquisition targets previously announced, generated over $2,700,000 in combined revenues in 2019. These acquisitions give Simplicity a total of 12 corporate owned gaming centers, in addition to numerous other franchisee owned gaming centers.

Roman Franklin, President of Simplicity Esports, stated, "I am thrilled to announce three more gaming center acquisitions. These acquisitions, along with existing corporate owned gaming centers, gives us ownership of 12 of the top 25 revenue producing gaming centers across our nationwide footprint during the month of February 2020. The percentage rent leases significantly reduce fixed operating costs for each gaming center, and we expect the gaming centers to be cash flow positive within 30 days of acquisition."

These acquisitions allow Simplicity Esports to report the full revenues generated by these gaming centers on a consolidated basis.

In addition to these acquisitions, Simplicity Esports has executed non-binding letters of intent for the acquisition of four additional esports gaming centers with new percentage rent leases from landlords. The four additional acquisitions are expected to close by December 15, 2020.

Enthusiast Gaming Holdings Inc. (TSX: EGLX)(OTCQB: ENGMF), the largest gaming platform in North America, connecting with over 300 million gamers monthly worldwide, recently concluded its Enthusiast Gaming Live Experience 2020 ("EGLX 2020"), a fusion of video games, esports, music, fashion, and lifestyle content and events. Supported by key sponsors, including SpiderTech, G FUEL and TikTok, the virtual event featured world premieres, unique performances and thrilling competitions - all live streamed to millions across the globe.

Entering its fifth year - the four-day free event was live streamed on eglx.com and on the Company's main Twitch channel: LG Loyal at twitch.tv/lgloyal. With a main broadcast centre in Toronto, multiple feeds were simultaneously streamed from all over the world in real-time, from as far away as Australia. The Toronto production and control centre hosted three cameras on-site and LED-lit walls and lighting were used to further enhance the viewer experience. Altogether, the digital event drew over 12 million viewers, totaling 53 hours of live streamed content during the event.

In addition to performances by musicians ZHU and Goldlink, and appearances from NFL Stars Richard Sherman and Darius Slay, the event hosted a variety of announcements. Luminosity Gaming, Enthusiast Gaming's esports organization, which counts 70 million fans, hosted the finale of its Rising Stars reality competition to find the next gaming superstar, which included more than a month of preliminary challenges and judging. With a panel featuring top Luminosity content creators Felix "xQc" Lengyel and Elliott "Muselk" Watkins, up-and-coming streamer, BabyCappah, was announced as the winner and was awarded a $100,000 Luminosity Gaming sponsorship. Fortnite pro Nicholas "Nick Eh 30" Amyoony was also signed to Luminosity Gaming's roster where he will continue to create family-friendly content.

"We are tremendously proud of how much EGLX has grown over the past five years, from a small cottage event to a premium, tier 1 gaming and esports fan experience. We look forward to continuing to create new and unique content experiences for our fans like Rising Stars and Gamers Got Talent, that consistently attract new sponsors and create additional content distribution opportunities on other platforms," shared Adrian Montgomery, CEO of Enthusiast Gaming. "EGLX, which has traditionally been a live, in-person event, pivoted this year to a digital format. I could not be more pleased with the finished product that drew an audience of over 12 million. During a time when we are all physically separated - gaming has a unique advantage in its online communities that have existed for years, and we want to continue building on them through events like EGLX where they can all come together."

Additional event highlights included:

GameSquare Esports Inc. (CSE: GSQ), a Canadian gaming and esports company, announced that it has signed a Letter of Intent to acquire 100% of the issued and outstanding shares in Reciprocity Corp., a privately held gaming and esports company. Under the terms of the LOI, GameSquare Esports will issue 43,750,000 common shares of GameSquare to the shareholders of Reciprocity. Under the terms of the LOI, Reciprocity shareholders will receive 10 million additional GameSquare common shares if the Reciprocity business generates a minimum of US$5 million of revenue and US$1 million of EBITDA within 12 months of closing and an additional 10 million GameSquare common shares if the Reciprocity business generates a minimum of US$7 million of revenue and US$1.4 million of EBITDA within 12 months of closing. The Acquisition remains subject to, among other things, the parties entering into a definitive agreement, applicable shareholder and regulatory approvals. The combination of GameSquare and Reciprocity is expected to significantly increase the revenue profile of the combined entity and to result in a company that generates positive EBITDA in the twelve months following the close of the transaction.

"The acquisition of Reciprocity is another step toward building Canada's leading esports company," said Kevin Wright, CEO of GameSquare. "The team at Reciprocity has built a great organization that I believe will change the way the market looks at esports investing. Reciprocity and its wholly owned subsidiary GCN, Inc. ("GCN") are led by industry veterans that understand the convergence of media, entertainment, sports and finance as shown by the top tier clients that GCN works with, while committing to growing an EBITDA positive business. I have high expectations of the leadership at Reciprocity and believe this will prove to be a transformative moment for GameSquare. We also believe the acquisition shows there is tremendous opportunity to acquire other companies serving the esports market that can benefit greatly as part of the GameSquare group of companies."

"The acquisition by GameSquare is the start of another exciting chapter for Reciprocity," added David Fawcett, CEO of Reciprocity. "We have identified a highly scalable vertical within esports and I believe that bridging the gap between brands, gamers and esports is the path to high revenue growth, EBITDA and the creation of tremendous shareholder value. We work with top tier global brands and see fantastic synergies between our North American operations and GameSquare's presence in the UK and EU through Code Red Esports. The opportunity to become part of the GameSquare group of companies is anticipated to accelerate our revenue growth and help us to realize our long-term vision of building a significant gaming and esports digital media company."

Reciprocity is a leading Canadian gaming and esports company; its main asset, wholly owned subsidiary GCN, bridges the gap between leading global brands and the gaming and esports community by developing and distributing world-class marketing activations. Additionally, Reciprocity owns 49% of a CrossFire franchise in China with its partner LGD Gaming and 40% of a League of Legends team in LATAM, Rainbow 7; both teams won their respective championships in 2020. GameSquare continues to build its pipeline of potential acquisitions to accelerate growth and scale with a focus on companies with a proven track record of high growth and profitability.

Nuvei Corporation (TSX: NVEI) (TSX: NVEI.U), the global payment technology partner of thriving brands, announced today a partnership with Unikrn, the world's leading esports betting operator. By supporting card acquiring and over 450 alternative payment methods (APMs) and 150 currencies worldwide, Nuvei will enable Unikrn to continue platform expansion as the popularity of esports and online casino gaming grows worldwide.

Unikrn will be using Cashier, Nuvei's innovative hosted payment page, to process customer transactions worldwide within a single interface - simplifying the customer journey to deposit and redeem funds.

Esports has grown from a niche market segment to one that now attracts an audience of approximately 495 million people worldwide due to monumental growth over the last decade and an additional surge of interest during the global COVID-19 pandemic.

Unikrn, the two-time winner of EGR's Esports Operator of the Year, is a global gaming operator uniquely positioned to take advantage of this explosive growth. Founded in 2014 by the former CEO of Microsoft Ventures, the company is currently active in 24 countries, including 41 states in the U.S. Unikrn offers a wide range of online gaming options on one platform, from its award-winning innovations in 24/7 virtual esports and skill-betting on popular online games, to sports betting and even a suite of traditional casino games.

Nuvei's Cashier is designed to handle high volumes of international payments reliably and securely, while maintaining regulatory compliance. It provides a localized interface and is integrated with nearly 150 global currencies and hundreds of local payment methods, ensuring a seamless payment experience for users in over 200 global markets. It also comes embedded with tools proven to minimize abandonment and offers industry-leading payouts.

Unikrn's customer base continues to grow in both size and diversity. This has brought the new challenge of catering to customers with different preferences as to payment method, currency and language, while maintaining a seamless and enjoyable user experience. With its steadily expanding global footprint and supporting the industry's most extensive list of APMs and currencies, Nuvei was the evident choice to solve this problem.

"Unikrn offers our global customer base access to an unrivaled spectrum of gaming experiences without interruption," said Rahul Sood, co-founder of Unikrn. "Nuvei was the best option for us to ensure we meet these expectations and offer a platform that will scale with our rapid growth. Cashier makes our customers' payment journey safe and seamless. We look forward to working with Nuvei for many years to come."

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