New Wave Esports Ramps Up with EMG Acquisition

New Wave Esports Corp. (CSE:NWES) will acquire the remaining shares of Even Matchup Gaming Inc that it doesn’t already own in a cash-and-stock deal

SmallCapPower | December 2, 2019: New Wave Esports Corp. (CSE:NWES) shares jumped 23% to $0.08 on Monday after the esports and competitive gaming company that provides capital and support services to esports organizations, teams, leagues, events, platforms, tools, and technology innovators said it has agreed to acquire all remaining issued and outstanding shares of Even Matchup Gaming Inc. (EMG), excluding the 18% stake that New Wave Esports currently holds. For the remaining 82% interest, New Wave Esports will pay a total consideration of $1.23 million, compromised of $550,000 in cash and 7,555,555 common shares of New Wave Esports at a deemed price of $0.09 per share. This is significant because it is a 39% premium to New Wave Esports’ closing stock price on Friday.

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EMG is a Toronto-based leading esports and competitive gaming event organizer, broadcaster, and player management company that coordinates online and live tournaments. EMG hosts 80+ events per year and the audience continues to grow, with more than 7,400 attendees, 25.8M social impressions, 5.5M YouTube views, and 1.8M Twitch views. EMG is known for making successful tournaments, featuring fighting games such as Smash Bros, Tekken, Dragon Ball, and Street Fighter.

Through New Wave Esports’ acquisition of Even Matchup Gaming, it will be able to capitalize on the most-viewed segment of esports in 2018, fighting games (newzoo, 2019).

“Even Matchup Gaming’s focus on fighting games uniquely positions the Company in an important emerging sector of esports,” said New Wave Esports CEO Dan Mitre, in a statement.

“Their tournament operator model is integral to the esports industry ecosystem as it is scalable and rapidly growing. Each of their events has set record attendance levels as they produce highly-memorable experiences for a hyper-engaged audience. The acquisition of EMG represents a major milestone in our commitment to fully acquire esports properties in order to drive continued growth and profitability in this fast-growing industry and demonstrates New Wave Esports’ expertise in identifying acquisition opportunities at fair market value,” he added.

New Wave Esports also has a $400,000 investment in Tiidal Gaming, operator of Lazarus, which is an esports team that has 50+ pro players and 12 teams in 12 countries. Lazarus won $3.5 million in the Fortnite World Cup in NYC. Lazarus operates in multiple platforms and has won a total prize pool of $4.7M with over 60+ podium finishes and 32+ tournament wins. Most of Lazarus’ winnings has been generated through Fortnite.

New Wave Esports’ investment in Tiidal is currently up four fold due to revenue growth within Tiidal. NWES also gained two advisory seats on Tiidal’s Board, to help support Tiidal’s growth in esports and entertainment, as well as 250,000 stock options.

To find out more about New Wave Esports Corp. (CSE:NWES), please visit the company’s Investor Hub.

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