ESE Entertainment Inc. Announces Fiscal 2021 Third Quarter Financial Results
Company Achieves Revenue of $4.23 Million for the Three Months Ended July 31, 2021, a 491% Increase Compared to Previous Quarter
VANCOUVER, BC, September 23, 2021 /CNW/ – ESE Entertainment Inc. (TSXV: ESE) (OTCQB: ENTEF) (the “Company” or “ESE”) is pleased to announce its unaudited interim consolidated financial results for the three and nine months ended July 31, 2021. All amounts are stated in Canadian dollars unless otherwise indicated.
Third Quarter 2021 Financial and Key Operating Highlights:
- Revenue of $4.23 million for the three months ended July 31, 2021 vs the three months ended July 31, 2020 revenue of $0.14 million.
- Cash balance increased to $9.17 million and zero debt.
- Entered a content production contract with Bitcoin Vault for a major roll out of an esports and gaming talent show, strengthening ESE’s presence in the global esports and gaming markets and expanding its production and media rights capabilities globally.
- Raised gross proceeds of $8.6 million in a bought deal public offering of units of the Company from institutional investors at a price of $1.40 per unit. Each unit is composed of one common share of the Company and one common share purchase warrant of the Company, exercisable at $1.95 for two years from issuance, subject to an acceleration right.
- Entered into a letter of intent to acquire Digital Motorsports, an Ireland-based provider of advanced simulation racing infrastructure, technology and support. This acquisition was subsequently completed on September 14, 2021.
- Improvement in bottom line, net loss of $1.26 million vs a net loss of $3.81 million in the previous quarter.
- Continued investment in platform development as well as improvement in back-office functions.
- Developing new software and technology for gaming and esports.
“After significant growth in the ESE group, launching our acquisition Digital Motorsports and raising $8.6 million to accelerate expansion, Q3 was a standout quarter for ESE Entertainment,” commented Konrad Wasiela, CEO of ESE Entertainment. “In the coming months, we anticipate revenue growth and margin expansion. We expect this growth to be driven by momentum in the existing business, performance of the newly completed Digital Motorsports acquisition, direct sales to our increasing pipeline of clients, and new business from our scalable technology and growing ecommerce platform. Further, our acquisition pipeline is robust and our team is working tirelessly to find and execute on prospective accretive transactions to maximize shareholder value.”
The financial information included in this news release should be read in conjunction with the Company’s unaudited interim consolidated financial statements and related management’s discussion and analysis for the three and nine months ended July 31, 2021, which are available on the Company’s website at www.ese.gg and on SEDAR at www.sedar.com.
ESE is a Europe based entertainment and technology company focused on gaming, particularly on esports. The Company provides a range of services to leading video game developers, publishers, and brands by providing technology, infrastructure, and fan engagement services internationally. ESE also operates its own ecommerce channels, esports teams, and gaming leagues. In addition to the Company’s organic growth opportunities, the Company is considering selective acquisitions that align with its objective of becoming a dominant global player in esports technology and infrastructure. | www.ese.gg
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that ESE anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, statements with respect to: anticipated revenue growth and margin expansion and the drivers thereof. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of ESE to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to ESE, including information obtained from third-party industry analysts and other third-party sources, and are based on management’s current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of ESE should be considered highly speculative.
This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about ESE’s prospective results of operations, revenues and margins and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraph. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about ESE’s future business operations. ESE disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ESE Entertainment Inc.
For further information about ESE, please contact:
Daniel Mogil, Investor Relations