Game On! Eye-Popping Results from Leading-Edge Mobile Games Publisher

A free-to-play mobile game publisher that’s focused on acquiring and optimizing proven video game franchises is now providing shareholders eye-popping results and returns.

With both-in home and personal entertainment now more prevalent than ever, the stay-at-home post-COVID economy is driving an increase in play time and money spent on mobile game apps. And the industry is experiencing downloads and use at unprecedented levels.

In fact, the mobile gaming market has outpaced every other market in video gaming, and is now valued at about $90 billion in revenue.

This resilient market is expected to grow at a compound annual growth rate (CAGR) of 14% by 2025. Today, mobile app games account for 33% of all app downloads and 74% of in-app spending. There are more than 200 million mobile gamers in the U.S. alone.

And at the cutting edge of this exploding technology is a consolidator of proven, free-to-play game franchises – Toronto, ON-based PopReach Corporation (POPR) (TSX-V.POPR, OTCQX: POPRF, Forum). To date, the company has acquired approximately 12 successful game franchises competing mainly in the North American game market, including Smurfs' Village (IP under license), Kitchen Scramble, Gardens of Time, City Girl Life, War of Nations and Kingdoms of Camelot. The company's franchises are enjoyed by over 1.2 million players each month.

Already cash-positive before even before recently entering the public market on the TSX Venture Exchange in early July, PopReach is looking to the rest of 2020 and beyond to advance and accelerate its already-proven business strategy/business model.

PopReach continues to focus on acquiring and optimizing additional franchises to grow its library of titles and consolidate its proven, free-to-play game franchises. Once acquired, PopReach improves the performance of these assets through a combination of operating cost reductions and game optimizations geared toward existing and new players. With more than 120 employees between their Toronto and Bangalore India offices, PopReach drives growth through a combination of investment in existing franchises and new acquisitions.


In the News: What’s the Buzz?

In the wake of last week’s announcement of a $5 Million Strategic Investment by Alibaba Group's Global Investment Arm, eWTP Tech Innovation Fund, PopReach’s shares skyrocketed from $0.84 on October 8th to a high of $1.57 on October
16th – nearly doubling over the course of about a week.


(30 day TSX-V: POPR stock chart Sep. – Oct. 2020. Click image to link to chart)

Jon Walsh, Co-Founder and CEO of PopReach commented on why the big deal with eWTP is such…a big deal:

"The team at eWTP are preeminent investors in the games industry and we are delighted to have them as shareholders of PopReach. In addition to providing us with additional capital to execute against our pipeline of acquisition opportunities, we are thrilled to be able to leverage eWTP's strategic insights, connections, and expert advice as PopReach's Special Advisor to Asia."

CY Chen, Partner of Game Business at eWTP and one of the gaming industry and esports market’s most prominent backers and investors, added:

"PopReach is a great addition to the eWTP portfolio, with a world-class team and strong execution to date. We believe they have a unique and compelling growth opportunity in the free to play mobile gaming space, and we look forward to supporting the management team to help them achieve their global expansion goals."

CY Chen brings immense credibility and a deep network to PopReach as a strategic advisor to the Asian market. With nearly 20 years of experience working in video games and related technologies, Mr. Chen is an industry veteran who helped pioneer online gaming in China. After moving on from his initial career as a surgeon to join the burgeoning games business, CY served as General Manager of Guangtong Games where he launched Mir 3: The Legend of Mir – one of China's all-time most profitable games. He also served as Lead Producer at Electronic Arts China.


INVESTOR ALERT:

• The significance of this deal can’t be underestimated – Alibaba Group Holding Limited, also known as Alibaba Group and Alibaba.com – is a $500-billion-plus Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology.

• On October 19th, Eight Capital – a full-service, independent investment dealer – initiated a “BUY” recommendation and $2.35/share target price, which implies 50% upside for PopReach in its recent prospectus.

The Bottom Line

Tech investors and company shareholders know a good thing when they see it, and POPR is riding a wave of investor confidence not often seen in this space. This well-financed, well-managed company with attractive market fundamentals should be kept well within any tech investor’s radar for the foreseeable future.


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For more information, visit popreach.com.


FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.