New Wave Esports Corp. (CSE:NWES) has strategic investments in some of the world’s most-promising esports properties
SmallCapPower | November 28, 2019: New Wave Esports Corp. (CSE:NWES) shares rose 7% to $0.075 on Wednesday after the esports and competitive gaming company that provides capital and support services to esports organizations, teams, leagues, events, platforms, tools, and technology innovators reported its second-quarter 2019 financial results (ended September 30, 2019). This represents the final quarter before the Company completed its reverse takeover transaction (RTO) on October 24, 2019.
Here’s what investors need to know:
At September 30, 2019, New Wave Esports had a cash balance of $1,370,985 and its wholly-owned subsidiary had $934,270 in cash as well as investments valued at $1,755,272. As a public company, New Wave Esports has changed its accounting policy to value its and its wholly-owned subsidiary’s investments at fair market value rather than book cost, to more accurately reflect valuation changes in the rapidly-developing esports industry.
On November 18, 2019, New Wave Esports announced a strategic investment in Talon Esports Limited, a professional esports organization with a growing presence across Asia, including Hong Kong, South Korea, Taiwan and Thailand. NWES spent US$300,000 to acquire an approximate 5% stake in Talon Esports.
In March 2019, New Wave Esports invested $400,000 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.
In March 2019, New Wave Esports invested in a minority stake in Even Matchup Gaming (EMG), and currently has 18% ownership with the option to acquire 49%. 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’ equity stake in Even Matchup Gaming, it will be able to capitalize on the most-viewed segment of esports in 2018, fighting games (newzoo, 2019).
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