ESE.V - Blue sky breakout on major acquisition news

wealth_bakery Updated   
Blue sky breakout from Double Bottom setup. Still undervalued in the eSports space.


ESE Announces Acquisition of Global Esports and Gaming Infrastructure Company with $14M+ in Revenue

Positions ESE as One of the Largest Global Esports Infrastructure Companies

- Transaction anticipated to make ESE one of the largest esports infrastructure companies in the world, "bridging" esports companies with their fans and customers.
- In 2020, WPG generated revenue in excess of $14,000,000.
- The Transaction will add WPG's existing client base to ESE. Clients of WPG's subsidiary, WPG Racing Solutions, include one of the largest esports companies in the world, and one of the largest sports organizations.
- Acquisition will deliver on core strategic priorities of (1) increasing revenue, (2) expanding tier-1 client base, (3) strengthening technology stack, (4) expanding operational geography, (5) adding experienced executives to our Management, and (6) increasing platform scalability through WPG's nearly 100 staff.

VANCOUVER, BC, Feb. 16, 2021 /CNW/ - ESE Entertainment Inc. (TSXV: ESE) (OTCQB: ENTEF) (the "Company" or "ESE") is excited to announce that it has entered into a binding share purchase agreement (the "Agreement") to acquire 51% of the business of World Phoning Group Inc., Encore Telecom Inc., and their two European operating subsidiaries, WPG Racing Solutions and Foresight Resolutions (collectively, "WPG"), to further develop ESE's robust esports and entertainment infrastructure business.

Under the terms of the Agreement, all of the assets of WPG will be rolled into a newly incorporated Canadian company, World Performance Group (the "Corporation"). Upon completion of the Agreement, ESE will acquire 51% of the issued and outstanding shares of the Corporation (the "Transaction"). The purchase price will consist of (i) $138,019 in cash payable on the closing of the Transaction (the "Closing"), (ii) 585,156 common shares of the Company (each, a "Common Share") issuable on Closing and (iii) 6,664,845 Common Shares to be released in monthly installments over the 36 months following the Closing. Pursuant to the Agreement, ESE has also agreed to make an investment of $750,000 in the Corporation.

ESE will have the option to acquire the remaining 49% of the issued and outstanding shares of the Corporation at any time within 34 months following the Closing by (i) paying $624,613 in cash and (ii) issuing 2,500,000 Common Shares.

WPG's principal, Wayne Silver, will continue to serve as the Corporation's CEO going forward, integrating his team and infrastructure into ESE's existing operations. Mr. Silver will also serve as an advisor to ESE's board, bringing his experience and extensive network to the Company.

WPG is an enhanced solutions provider operating an infrastructure business for management of fan engagement for OTT & esports. WPG's team provides solutions in 10+ languages and works with its customers to build new and improved B2C & B2B processes that align with customers' brands, boost retention, enhance fan interaction, improve ROI and increase sales and profit margins. WPG provides bespoke, omni-channel solutions that encompass the traditional channels (voice, chat and email), social media channels (Twitter and Facebook) and embrace new community channels (Discord, Reddit, etc.) used by millennials and many of today's younger fans and Generation Z. In addition, WPG offers out-sourced network services, including B2B and B2C services, and a global telecom network through Encore Telecom Inc.
Trade closed: target reached


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.