ESE Entertainment Announces Fiscal 2021 Third Quarter...Strong quarterly results. Well done.
ESE Entertainment Inc. Announces Fiscal 2021 Third Quarter Financial Results
VANCOUVER, British Columbia, Sept. 23, 2021 (GLOBE NEWSWIRE) -- 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.
About ESE
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.