Schwazze Closes Acquisition Of Drift

Research, News, and Market Data on Schwazze

 

Expanding Retail Footprint in Boulder County, Colorado

OTCQX: SHWZ

DENVER, Jan. 26, 2022 /CNW/ – Schwazze, (OTCQX:SHWZ) (“Schwazze” or the “Company”), is pleased to announce that it has closed the transaction to acquire the assets of BG3 Investments, LLC dba Drift which consists of two cannabis dispensaries located in Boulder, Colorado. This purchase continues Schwazze’s expansion plan in Colorado, adding to the Company’s current dispensary footprint, and bringing the total number of dispensaries to twenty. As part of the purchase, Schwazze will also acquire the assets of Black Box Licensing, LLC, which contains certain intellectual property.

“We look forward to adding these dispensaries to our portfolio. The Company remains focused on bringing excellent shopping experiences to all areas of Colorado by providing a wide assortment of quality products along with great service that our customers have come to expect from our brands.  We are excited to bring that experience to our customers in Boulder,” said Nirup Krishnamurthy, Schwazze’s COO.

The consideration for the acquisition was $3.5 million and was paid as $1.9 million in cash, and $1.6 million in common stock.

Corporate Update
Since April 2020, Schwazze has announced and/or acquired a total of 32 cannabis dispensaries, including the ten R. Greenleaf New Mexico dispensaries.  The Company has also announced and/or acquired in 2021 a total of seven cultivation facilities, three in Colorado – SCG Holding LLC, Brow 2 LLC and Star Buds – and four licensed by Medzen and RGO in New Mexico.  The R. Greenleaf acquisition will add a New Mexico manufacturing asset, Elemental Kitchen & Laboratories, LLC, to the Company’s manufacturing plant, Purplebee’s in Colorado.

In May 2021, Schwazze announced its BioSciences division and in August 2021 it commenced home delivery services in Colorado.

About Schwazze 
Schwazze (OTCQX: SHWZ) is building a premier vertically integrated regional cannabis company with assets in  Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position.  Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.  The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition.  Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes.  The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.  Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices.  Medicine Man Technologies, Inc. was Schwazze’s former operating trade name.  The corporate entity continues to be named Medicine Man Technologies, Inc.

Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.

Forward-Looking Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “may,” “estimates”, “predicts,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the actual revenues derived from the Company’s Star Buds assets, * the Company’s actual revenue and adjusted EBITDA for 2021, (xi) the Company’s ability to generate positive cash flow for the rest of 2021 (xii) the ongoing COVID-19 pandemic, (xiii) the timing and extent of governmental stimulus programs, and (xiv) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

SOURCE Schwazze

Motorsport Games Announces Official KartKraft Launch

Research, News, and Market Data on Motorsport Games

 

PREVIOUSLY IN ‘EARLY ACCESS,’ THE FULL GAME WILL COME COMPLETE WITH ONLINE MULTIPLAYER, OFFICIAL TRACKS AND FULL CUSTOMIZATION OPTIONS

MIAMI, Jan. 26, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”), a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, announces today the official launch of KartKraft, available to play on PC through the Steam store. Previously in ‘Early Access’ mode since November of 2018, this marks the full release of the leading kart racing simulator, bringing a bevy of new features for fans to enjoy. The trailer can be viewed here.

KartKraft is developed and published by Motorsport Games, having acquired the game IP, assets and code from original developer Black Delta in March of 2021. Key members from Black Delta, including Founder Zach Griffin, joined Motorsport Games to form its new Australia-based studio, which has continued to work on KartKraft. Since last year’s acquisition, Motorsport Games Australia has carried on developing the game to get it ready for its full launch.

“The Motorsport Games team is excited to finally launch KartKraft in full, bringing more top-tier features than ever to the most highly-acclaimed karting simulator on the market,” said Dmitry Kozko, CEO of Motorsport Games. “Acquiring KartKraft last year signaled our aggressive plans for growth and expansion as a leading developer of racing games, and our amazing team in Australia has delivered a stunning title for fans across the world. We look forward to hearing from our players about KartKraft and will continue to build upon this release as we’ll keep evolving the game in future.”

The full release of KartKraft for PC introduces a number of fresh additions to improve the overall gaming experience. Players can now participate in scheduled multiplayer sessions with a bespoke matchmaking system, something previously unavailable in the Early Access version. Additionally, the full version of KartKraft allows players to customize their own karts with 8 officially licensed manufacturers and 5 different classes. Players can also race on 7 officially licensed, laser-scanned circuits , including the newly added Whilton Mill circuit. Additionally, KartKraft supports virtual reality and triple screen play, as well as full motion support.

“Since joining the Motorsport Games team last year, we’ve been provided with more resources and tools than ever before to make KartKraft the remarkable game that it is today,” said Zach Griffin, Director of Technology at Motorsport Games. “With our full launch out of Early Access, we couldn’t be more pleased to finally bring a list of features that have been asked for by our community for some time, including online multiplayer, user interface updates and more tracks. More importantly, this does not signal the end of KartKraft’s development, but the start of the next chapter. I’m confident that players will love this game just as much as we have enjoyed making it.”

KartKraft is available to play today on Steam for PC. It can be purchased for $39.99. The game developers will continue to work on and improve KartKraft after initial release continuously iterating upon the foundation in place.

To keep up with the latest Motorsport Game news, please visit www.motorsportgames.com and follow on Twitter, Instagram, Facebook and LinkedIn.

About Motorsport Games:
Motorsport Games, a Motorsport Network company, combines innovative and engaging video games with exciting esports competitions and content for racing fans and gamers around the globe. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), across PC, PlayStation, Xbox, Nintendo Switch and mobile. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. For more information about Motorsport Games, visit www.motorsportgames.com.

Forward-Looking Statements
Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: (i) the Company’s expectation to pursue aggressive plans for growth and expansion as a leading developer of racing games; and (iii) the expected future impact of new or planned products, features, offerings or events, and the timing of launching such products, features, offerings or events, including, without limitation, the Company’s belief that with the release of KartKraft, its amazing team in Australia has delivered a stunning title and a remarkable game for fans across the world, the Company’s plans to continue to build upon this release and to keep evolving the game in future and that players will love this game. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to: (i) difficulties, delays or less than expected results in achieving the Company’s growth plans, objectives and expectations, such as due to a slower than anticipated economic recovery and/or the Company’s inability, in whole or in part, to continue to execute its business strategies and plans, such as due to unforeseen difficulties in maintaining existing licenses, and securing additional licenses with various racing series and/or difficulties in attracting and retaining qualified employees and key personnel; and/or (ii) Motorsport Games experiencing difficulties and/or delays in enhancing the quality of its product offerings that could negatively impact its future development plans, such as due to difficulties or delays in launching new products, higher than anticipated costs incurred in developing, launching and continuining to enhance and improve such products and/or less than anticipated consumer acceptance of the Company’s product offerings and/or difficulties, delays in or unanticipated events that may impact the timing and scope of new product launches, such as due to delays and higher than anticipated expenses related to the ongoing and prolonged COVID-19 pandemic and related economic lockdowns and government mandates; unanticipated operating costs, transaction costs and actual or contingent liabilities; adverse effects of increased competition; and unanticipated changes in consumer behavior, including as a result of general economic factors, such as increased inflation. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the SEC, which may be found at www.sec.gov and at ir.motorsportgames.com, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its Quarterly Reports on Form 10-Q filed with the SEC during 2021, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.

Website and Social Media Disclosure:
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on these websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):

The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.

Investors:
Ashley DeSimone
Ashley.Desimone@icrinc.com

Press:
ASTRSK PR
motorsportgames@astrskpr.com

Motorsport Games Announces Official KartKraft Launch

Research, News, and Market Data on Motorsport Games

 

PREVIOUSLY IN ‘EARLY ACCESS,’ THE FULL GAME WILL COME COMPLETE WITH ONLINE MULTIPLAYER, OFFICIAL TRACKS AND FULL CUSTOMIZATION OPTIONS

MIAMI, Jan. 26, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”), a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, announces today the official launch of KartKraft, available to play on PC through the Steam store. Previously in ‘Early Access’ mode since November of 2018, this marks the full release of the leading kart racing simulator, bringing a bevy of new features for fans to enjoy. The trailer can be viewed here.

KartKraft is developed and published by Motorsport Games, having acquired the game IP, assets and code from original developer Black Delta in March of 2021. Key members from Black Delta, including Founder Zach Griffin, joined Motorsport Games to form its new Australia-based studio, which has continued to work on KartKraft. Since last year’s acquisition, Motorsport Games Australia has carried on developing the game to get it ready for its full launch.

“The Motorsport Games team is excited to finally launch KartKraft in full, bringing more top-tier features than ever to the most highly-acclaimed karting simulator on the market,” said Dmitry Kozko, CEO of Motorsport Games. “Acquiring KartKraft last year signaled our aggressive plans for growth and expansion as a leading developer of racing games, and our amazing team in Australia has delivered a stunning title for fans across the world. We look forward to hearing from our players about KartKraft and will continue to build upon this release as we’ll keep evolving the game in future.”

The full release of KartKraft for PC introduces a number of fresh additions to improve the overall gaming experience. Players can now participate in scheduled multiplayer sessions with a bespoke matchmaking system, something previously unavailable in the Early Access version. Additionally, the full version of KartKraft allows players to customize their own karts with 8 officially licensed manufacturers and 5 different classes. Players can also race on 7 officially licensed, laser-scanned circuits , including the newly added Whilton Mill circuit. Additionally, KartKraft supports virtual reality and triple screen play, as well as full motion support.

“Since joining the Motorsport Games team last year, we’ve been provided with more resources and tools than ever before to make KartKraft the remarkable game that it is today,” said Zach Griffin, Director of Technology at Motorsport Games. “With our full launch out of Early Access, we couldn’t be more pleased to finally bring a list of features that have been asked for by our community for some time, including online multiplayer, user interface updates and more tracks. More importantly, this does not signal the end of KartKraft’s development, but the start of the next chapter. I’m confident that players will love this game just as much as we have enjoyed making it.”

KartKraft is available to play today on Steam for PC. It can be purchased for $39.99. The game developers will continue to work on and improve KartKraft after initial release continuously iterating upon the foundation in place.

To keep up with the latest Motorsport Game news, please visit www.motorsportgames.com and follow on Twitter, Instagram, Facebook and LinkedIn.

About Motorsport Games:
Motorsport Games, a Motorsport Network company, combines innovative and engaging video games with exciting esports competitions and content for racing fans and gamers around the globe. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), across PC, PlayStation, Xbox, Nintendo Switch and mobile. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. For more information about Motorsport Games, visit www.motorsportgames.com.

Forward-Looking Statements
Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: (i) the Company’s expectation to pursue aggressive plans for growth and expansion as a leading developer of racing games; and (iii) the expected future impact of new or planned products, features, offerings or events, and the timing of launching such products, features, offerings or events, including, without limitation, the Company’s belief that with the release of KartKraft, its amazing team in Australia has delivered a stunning title and a remarkable game for fans across the world, the Company’s plans to continue to build upon this release and to keep evolving the game in future and that players will love this game. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to: (i) difficulties, delays or less than expected results in achieving the Company’s growth plans, objectives and expectations, such as due to a slower than anticipated economic recovery and/or the Company’s inability, in whole or in part, to continue to execute its business strategies and plans, such as due to unforeseen difficulties in maintaining existing licenses, and securing additional licenses with various racing series and/or difficulties in attracting and retaining qualified employees and key personnel; and/or (ii) Motorsport Games experiencing difficulties and/or delays in enhancing the quality of its product offerings that could negatively impact its future development plans, such as due to difficulties or delays in launching new products, higher than anticipated costs incurred in developing, launching and continuining to enhance and improve such products and/or less than anticipated consumer acceptance of the Company’s product offerings and/or difficulties, delays in or unanticipated events that may impact the timing and scope of new product launches, such as due to delays and higher than anticipated expenses related to the ongoing and prolonged COVID-19 pandemic and related economic lockdowns and government mandates; unanticipated operating costs, transaction costs and actual or contingent liabilities; adverse effects of increased competition; and unanticipated changes in consumer behavior, including as a result of general economic factors, such as increased inflation. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the SEC, which may be found at www.sec.gov and at ir.motorsportgames.com, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its Quarterly Reports on Form 10-Q filed with the SEC during 2021, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.

Website and Social Media Disclosure:
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on these websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):

The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.

Investors:
Ashley DeSimone
Ashley.Desimone@icrinc.com

Press:
ASTRSK PR
motorsportgames@astrskpr.com

Schwazze Closes Acquisition Of Drift

Research, News, and Market Data on Schwazze

 

Expanding Retail Footprint in Boulder County, Colorado

OTCQX: SHWZ

DENVER, Jan. 26, 2022 /CNW/ – Schwazze, (OTCQX:SHWZ) (“Schwazze” or the “Company”), is pleased to announce that it has closed the transaction to acquire the assets of BG3 Investments, LLC dba Drift which consists of two cannabis dispensaries located in Boulder, Colorado. This purchase continues Schwazze’s expansion plan in Colorado, adding to the Company’s current dispensary footprint, and bringing the total number of dispensaries to twenty. As part of the purchase, Schwazze will also acquire the assets of Black Box Licensing, LLC, which contains certain intellectual property.

“We look forward to adding these dispensaries to our portfolio. The Company remains focused on bringing excellent shopping experiences to all areas of Colorado by providing a wide assortment of quality products along with great service that our customers have come to expect from our brands.  We are excited to bring that experience to our customers in Boulder,” said Nirup Krishnamurthy, Schwazze’s COO.

The consideration for the acquisition was $3.5 million and was paid as $1.9 million in cash, and $1.6 million in common stock.

Corporate Update
Since April 2020, Schwazze has announced and/or acquired a total of 32 cannabis dispensaries, including the ten R. Greenleaf New Mexico dispensaries.  The Company has also announced and/or acquired in 2021 a total of seven cultivation facilities, three in Colorado – SCG Holding LLC, Brow 2 LLC and Star Buds – and four licensed by Medzen and RGO in New Mexico.  The R. Greenleaf acquisition will add a New Mexico manufacturing asset, Elemental Kitchen & Laboratories, LLC, to the Company’s manufacturing plant, Purplebee’s in Colorado.

In May 2021, Schwazze announced its BioSciences division and in August 2021 it commenced home delivery services in Colorado.

About Schwazze 
Schwazze (OTCQX: SHWZ) is building a premier vertically integrated regional cannabis company with assets in  Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position.  Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.  The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition.  Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes.  The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.  Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices.  Medicine Man Technologies, Inc. was Schwazze’s former operating trade name.  The corporate entity continues to be named Medicine Man Technologies, Inc.

Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.

Forward-Looking Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “may,” “estimates”, “predicts,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the actual revenues derived from the Company’s Star Buds assets, * the Company’s actual revenue and adjusted EBITDA for 2021, (xi) the Company’s ability to generate positive cash flow for the rest of 2021 (xii) the ongoing COVID-19 pandemic, (xiii) the timing and extent of governmental stimulus programs, and (xiv) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

SOURCE Schwazze

Friday, January 21, 2022

Item 9 Labs (INLB)
Reports Full Year Fiscal 2021 Results

Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The award-winning Item 9 Labs brand specializes in best-in-class products and user experience across several cannabis categories. The company also offers a unique dispensary franchise model through the national Unity Rd. retail brand. Easing barriers to entry, the franchise provides an opportunity for both new and existing dispensary owners to leverage the knowledge, resources, and ongoing support needed to thrive in their state compliantly and successfully. Item 9 Labs brings the best industry practices to markets nationwide through distinctive retail experience, cultivation capabilities, and product innovation. The veteran management team combines a diverse skill set with deep experience in the cannabis sector, franchising, and the capital markets to lead a new generation of public cannabis companies that provide transparency, consistency, and well-being. Headquartered in Arizona, the company is currently expanding its operations space by 650,000+ square feet on its 50-acre site, one of the largest properties in Arizona zoned to grow and cultivate flower. For additional information, visit item9labscorp.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

FY21 Results. For the year ended September 30th, Item 9 reported revenue of $21.9 million, an increase of $13.8 million, or 170%, compared with $8.1 million in FY2020. Net loss was $10.9 million, or $0.14 per share. We had projected revenue of $23.3 million and a net loss of $1.5 million, or $0.02 per share.


FY4Q21.  Although Item 9 did not disclose fourth quarter 2021 results, by our calculations net revenue was $6.1 million, up from $2.5 million in the year ago period but down from the $6.7 million in the fiscal third quarter. Higher expenses and the inclusion of $3.9 million of debt discount amortization resulted in a loss for the quarter of $9.0 million, or $0.10 per share …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Tuesday, January 18, 2022

Kandi Technologies Group (KNDI)
High cash position allows expansion AND share repurchase

Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd.) and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

In recent weeks, Kandi announced that it is mass producing batteries and has an agreement to produce electric vehicles. The developments follow a recent share repurchase announcement. So is Kandi expanding or contracting? Maybe both. We believe the company’s large cash position will allow it to finance expanded operations and still consider repurchasing shares in response to recent stock price weakness.


Kandi announces mass production of its lithium iron phosphate battery (12/28).  The batteries are being manufactured by Kandi’s wholly-owned subsidiary, Huiyi, which it acquired in the summer of 2021 for $7.7 million. The press release did not give production levels or identify customers, but spoke of the improved energy capacity of the new battery relative to past versions and industry averages …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Motorsport Games And Live Fast Motorsports Announce Increased Partnership For 2022 Nascar Season

Research, News, and Market Data on Motorsport Games

 

MOTORSPORT GAMES WILL GAIN UNPRECEDENTED ACCESS TO THE NASCAR TEAM ASSISTING IN THE DEVELOPMENT OF ITS GAMING FRANCHISE THROUGH A TECHNICAL PARTNERSHIP

MIAMI, Jan. 17, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”), a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, announces today its increased technical partnership with Live Fast Motorsports, the single-car Ford Mustang team competing full-time in the NASCAR Cup Series under the No. 78 car. This deal will advance the partnership between Motorsport Games and Live Fast Motorsports, co-owned by driver BJ McLeod and Matt Tifft, that began last year.

The technical partnership will expand Motorsport Games’ access to the real-life NASCAR grid throughout the 2022 racing season, including tracks, nuances and feedback of professional stock car driving and key data at the team’s disposal. Motorsport Games already has strong access to NASCAR through its work with the series, but this partnership will serve to increase its ability to communicate with a team on a more intimate level. Throughout the agreement’s term, Motorsport Games will be present within the Live Fast Motorsports garage, opening up lines of communication previously unavailable between racing team personnel and Motorsport Games. Motorsport Games will additionally gain real-time experience and feedback that it plans to implement directly into its NASCAR video game franchise, including the ability to make real-time updates into its NASCAR 21: Ignition and future titles, and that overall is designed to provide racing enthusiasts with the most realistic and authentic driving experience on the market.

“Motorsport Games cannot have asked for a better strategic partner than Live Fast Motorsports and we look forward to continuing our collaboration into the next NASCAR season,” said George Holmquist, VP of Publishing and Marketing, Motorsport Games. ”BJ, Matt and the entire Live Fast Motorsports team have been fantastic partners and we cannot thank them enough for the unparalleled level of access they are giving our company. We will be taking our real-time on track findings directly from the team on the NASCAR grid into our game designs, further exemplifying our commitment to providing our players with the most dynamic and true to life gaming experience imaginable.”

“Throughout the past year, Motorsport Games has been an amazing partner to the No. 78 car and we’re excited to keep the momentum going by representing the company in seven of the biggest races next season,” said BJ McLeod, driver and co-owner, Live Fast Motorsports. ”I’ve always been a personal fan of video games, especially those involving my favorite sport. It’s exciting to have this opportunity to provide feedback throughout the season to help create the best NASCAR game possible. I can’t wait to get started this season with Motorsport Games at Daytona all the way through Martinsville.”

“We’re thrilled to welcome Motorsport Games back as our partner for the second year. Last year, they became our founding partner and we had a terrific season together,” added Matt Tifft, co-owner of Live Fast Motorsports. “Motorsport Games has given us the ability to better connect with our younger fans on a more intimate level through its video games. This year, we look forward to keeping the engagement rolling with our expanded partnership. Our entire Live Fast Motorsports family welcomes back Motorsport Games, as they are truly one of our own.”

NASCAR 21: Ignition, the current iteration of Motorsport Games’ NASCAR franchise for the 2021 NASCAR Cup Series, is available now on Sony PlayStation 4, Microsoft Xbox One and PC through the Steam store. NASCAR 21: Ignition is developed and published by Motorsport Games and is powered by Unreal Engine and Studio 397’s highly-acclaimed rFactor physics engine. The use of both Unreal Engine and rFactor physics gives users a more authentic driving experience, immersive gameplay, dynamic AI and stunning visuals.

To keep up with the latest Motorsport Game news, please visit www.motorsportgames.com and follow on Twitter, Instagram, Facebook and LinkedIn.

About Motorsport Games:
Motorsport Games, a Motorsport Network company, combines innovative and engaging video games with exciting esports competitions and content for racing fans and gamers around the globe. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), across PC, PlayStation, Xbox, Nintendo Switch and mobile. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. For more information about Motorsport Games, visit www.motorsportgames.com.

Forward-Looking Statements:
Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the Company’s expected benefits from its partnership with Live Fast Motorsports, such as its plans to implement real-time experience and feedback directly into its NASCAR video game franchise, including making real-time updates into its NASCAR 21: Ignition and future titles, and will provide racing enthusiasts with the most realistic and authentic driving experience on the market. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to difficulties, delays or less than expected results in achieving the Company’s expected benefits from its partnership with Live Fast Motorsports, such as due to unforeseen technical difficulties, or higher than anticipated costs, in implementing the Live Fast Motorsports real-time data into its gaming franchises, such as its NASCAR 21: Ignition franchise. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the SEC, which may be found at www.sec.gov and at ir.motorsportgames.com, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its Quarterly Reports on Form 10-Q filed with the SEC during 2021, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.

Website and Social Media Disclosure:
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on these websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):

The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.

Investors:
Ashley DeSimone
Ashley.Desimone@icrinc.com

Press:
ASTRSK PR
motorsportgames@astrskpr.com

Item 9 Labs Corp. Reports Record FY 2021 Annual Financial Results with Revenue Growth of 170% to $21.9 Million Revenue

Research, News, and Market Data on Item 9 Labs

 

– Cultivation, Production and Processing Expansion Ongoing in Arizona and Nevada

– Unity Rd. Brand Accelerates Ramp by Signing Ten Agreements for National Cannabis Dispensary Franchise Expansion

– Management to Host Conference Call and Webcast to Discuss Key Operational and Financial Highlights Today at 2:00 p.m. ET

PHOENIX, Jan. 18, 2022 /PRNewswire/ — Item 9 Labs Corp. (OTCQX: INLB) (the “Company”)—a vertically integrated cannabis dispensary franchisor and operator that produces premium, award-winning products—today reported operating and financial results for the 12 months ended September 30, 2021, the Company’s fiscal year 2021 (“FY2021”). Item 9 Labs Corp. management will be hosting an earnings results call today, January 18, at 2:00 p.m. Eastern time (11:00 a.m. Pacific time); details are provided below.

Key Financial Highlights for FY2021 (compared with FY2020)

• Revenue increased 170% to $21.9 million
• Gross profit increased 161% to $8.6 million
• Gross margin remained flat at approximately 40%
• Operating loss of $5.6 million compared with operating loss of $5.4 million
• Operating expenses as a percentage of revenue declined to 65% from 107%
• Net loss of $10.9 million compared with net loss of $12.3 million
• Net loss included $5.3 million ($700,000 cash) of interest expense compared with $7.0 million ($450,000 cash)
• Adjusted EBITDA loss of $1.7 million (compared with adjusted EBITDA loss of $2.5 million)

Key Business Highlights During and Subsequent to FY2021

• Won Seven First Place Awards for Product Excellence in 2021: The Company’s premium cannabis product brand, Item Nine Labs, secured its first Cannabis Cup—the most prestigious milestone that cannabis brands strive for worldwide—taking home first place in the “vape pens” category with its Black and Blue Kush Broad Spectrum Cartridge and third place in the “pre-rolls” category with its Do-Si-Do strain. The elevated mainstream brand also earned two first-place awards, two second-place awards and one third-place award for its high-quality vape and concentrate products at the 710 Degree Cup and three first-place awards at the Errl Cup—Arizona’s largest and longest-running annual cannabis festivals and awards events. All told, the decorated brand has earned 23 awards in product competitions since its inception, including 14 first-place finishes.
• Secured $19 Million Construction-Financing Loan from Pelorus Equity Group for Expansion of Cultivation & Lab Sites in Arizona & Nevada: The financing is funding master site expansion in Arizona, including acquisition of the 45 acres of adjacent land next to the Company’s existing 19,200 square foot facility. Capacity of the Company’s Arizona operations, once all expansion is complete, is expected to be enhanced by 31x. Pelorus Equity Group is a leading provider of value-add bridge commercial real estate loans to cannabis businesses and owners with cannabis-related real estate.
• Executed Asset Purchase Agreement for a Colorado Dispensary Kickstarts National Growth Plan: Item 9 Labs Corp. plans to aggressively expand its dispensary franchise, Unity Rd., by acquiring and converting cannabis retail stores, training the local team and selling the business to new and existing Unity Rd. franchise partners. As the Company seeks to keep dispensary ownership local, this growth strategy offers turnkey investment opportunities for prospective cannabis entrepreneurs. In October, Item 9 Labs Corp. executed an Asset Purchase Agreement for an existing dispensary license and storefront in Adams County, Colorado. This will be the first corporate-owned shop under the Unity Rd. brand. Currently, the Company is awaiting regulatory approval by Colorado’s Marijuana Enforcement Division (the “MED”) and expects the shop to be operational in the first half of 2022. Item 9 Labs Corp. plans to operate the store for 6-18 months and utilize it for franchise partner and team training as well as tours with prospective franchise partners.
• Expanded Footprint of Unity Rd. Dispensary Franchise into New England: Item 9 Labs Corp. signed agreements with entrepreneurial groups for development in New Jersey and Virginia and is currently assisting the New Jersey groups in submitting their dispensary license applications in March. The Company also signed a lease in Maine for the state’s first Unity Rd. shop and is awaiting license approval from the state.
• Signed First Unity Rd. Agreement in South Dakota: Unity Rd. kicked off local expansion in South Dakota with the signing of an agreement that will bring the brand’s first shop to the Mount Rushmore State. The retailer has partnered with local serial entrepreneur BJ Olson and his business partner to develop at least one Unity Rd. shop and is currently guiding them through the state’s dispensary license process.
• Joined the International Franchise Association (IFA), Solidifying Position as First Cannabis Dispensary Franchise to Become Members: Utilizing the franchise business model for national development, Unity Rd. continues to blaze trails by becoming the first brand of its kind to be named an IFA member. The organization’s membership base includes more than 1,000 franchise brands across 300 industries, and Unity Rd. is currently the sole franchise model to represent the plant-touching cannabis space.
• Enhanced Board of Directors with Two Independent Appointments: Item 9 Labs Corp. recently named Eric C. Kutscher, Pharm. D., M.B.A., F.A.S.H.P., and Lawrence X. Taylor to its Board of Directors. Kutscher and Taylor bring a combined 55-plus years of experience across patient-centered healthcare, leadership, M&A and strategic planning. Their appointments demonstrate the Company’s focus on strengthening its corporate governance through more independent directors.
• Bolstered Franchise and Marketing Teams with Key Hires to Support Company Growth: Throughout the second half of 2021, Item 9 Labs Corp. made several strategic management hires to support national franchise expansion of Unity Rd. and accelerate momentum across the franchise and Item Nine Labs products: Mike Keskey II as General Counsel, Kristen Mathis as Vice President of Marketing, Tracy Timko as Director of Franchise Support, Erica Tarnowski as Franchise Development Manager, and Emily Gritti as Senior Manager of Trade Marketing & Events.

Management Commentary

Item 9 Labs Corp.’s Chief Executive Officer, Andrew Bowden, stated, “Our company has never been in a better position. With Arizona’s adult-use sales going live in January 2021, our products and brand have been gaining tremendous traction. We have grown to $2 million in revenue per month and solidified our spot in Arizona as one of the top brands in every dispensary we sell through, which is more than 50% of Arizona’s dispensaries. The state’s combined adult-use and medical markets have continuously grown each month and $1 billion in annual sales in November. With expansion underway at our Arizona site that will add 45,000 square feet, we will be in a position to meet this increased demand in the second half of 2022 with our additional cultivation, production, and processing space.”

Item 9 Labs Corp.’s Chief Strategy Officer, Jeffrey Rassas, commented, “Our cannabis dispensary franchise, Unity Rd., is already gaining strong traction and our team is executing a strategic initiative to expand the brand’s footprint from coast to coast. We have a national acquisition plan to accelerate expansion and began executing a couple months ago with our first deal in Adams County, Colorado. We have a robust pipeline of opportunities across a wide range of appealing states and expect to make further announcements over the next few months. There are a tremendous amount of synergies we gained from the acquisition of Unity Rd.’s parent company, OCG Inc., including expanded business offerings and expertise, operational efficiencies, cost savings and revenue upside.”

Item 9 Labs Corp.’s Chief Financial Officer, Bobby Mikkelsen, commented, “With our 170% annual growth in revenue to $21.9 million, we have demonstrated the scalability of our business throughout fiscal year 2021 and saw growth and profitability in the second and third quarters. In the fourth quarter and through the end of December 2021, we have made additional hires, continued development of our Nevada site and began construction on our site in Arizona, which has caused our expenses to rise. While we build out our capabilities and bolster our team for future growth, we are confident in the greater demand and believe we are strengthening our position for increased business in Arizona.”

Arizona Master Cultivation Site Expansion

In November, Item 9 Labs Corp. broke ground on the initial phase of the master expansion of its Coolidge, Arizona cultivation & lab site. $13.5 million of the proceeds from the Pelorus loan will go toward this initial buildout, which more than doubles current operations space. As part of the expansion, the Company recently acquired the neighboring 45 acres of the site. At 50 acres, the site is one of the largest properties in Arizona that is zoned to grow and cultivate flower. The initial development phase is estimated to be completed in Summer 2022 and includes the construction of three steel buildings and two greenhouses – adding 9,600 square feet for indoor cultivation, 9,600 square feet of lab and packaging and a 9,600 square foot head house to support the addition of the two 18,000 square foot greenhouses.

With this initial expansion phase, the Company expects to increase output of cannabis plant material by 250-300%, with a per unit cost reduction of at least 30%. Further, the additional greenhouses will reduce reliance on third-party sourced material for lab productions by 40-50%. Expansion of the existing lab allows for the addition of more state-of-the-art equipment for all extraction processes, which will support product diversification.

Nevada Cultivation Site Expansion

The remaining proceeds from the Pelorus loan are to complete the Company’s 20,000 square foot facility in Pahrump, Nevada that is currently approximately 85% finished. The expansion includes 4,450 square feet for flower, 990 square feet of vegetation space, 400 square feet for clones, 300 square feet for dry curing and 615 square feet of space for genetics. The facility also includes more than 2,500 square feet of post-processing and lab space, along with the opportunity for a joint venture with a 1,100 square foot commercial kitchen. The remainder of the building is ancillary rooms such as water rooms, offices, locker rooms and break rooms. Item 9 Labs Corp. anticipates the Nevada facility will be operational in Spring 2022.

Financial Results for FY2021 Ended September 30, 2021

• Revenue: For the 12 months ended September 30, 2021, revenue was $21.9 million, an increase of $13.8 million, or 170%, compared with $8.1 million for the 12 months ended September 30, 2020. This growth was primarily driven by the Company investing in increased production capacity to better meet the market demand of Item Nine Labs products.
• Gross Profit: For the 12 months ended September 30, 2021, gross profit was $8.6 million, an increase of $5.3 million, or 161%, compared with $3.3 million for the 12 months ended September 30, 2020. The resulting gross margin was 39%, compared with 41% for the 12 months ended September 30, 2020. The Company experienced lower gross profit margins in the fourth quarter of 2021 due to price reductions as competition rises in Arizona. Additionally, to deepen the market penetration of Item Nine Labs products, the Company sourced plant and extract materials from third parties, the effect of which is higher gross profit, but lower gross margin.
• Total Operating Expenses: For the 12 months ended September 30, 2021, total operating expenses were $14.2 million, an increase of $5.5 million, or 63%, compared with $8.7 million for the 12 months ended September 30, 2020. The Company has invested heavily into FY2021 and 2022 to meet growing demand in Arizona as well as funding the build out of its cultivation and lab site in the Grand Canyon State. Management believes this will improve earnings and future cash position. Operating expenses as a percentage of revenue decreased to 65% from 107%, reflecting the Company’s focus on increasing revenue and scaling its platform more efficiently. Management believes this ratio will decrease going forward as it scales the business.

  Of note, $7.8 million of the Company’s operating expenses for the 12 months ended September 30, 2021 were non-cash expenses, including depreciation, amortization and stock-based compensation.

  Of note, $3.9 million of interest expense in 2021 is non-cash amortization of the debt discount.

• Operating Loss: For the 12 months ended September 30, 2021, operating loss was $5.6 million, in-line with an operating loss of $5.4 million for the 12 months ended September 30, 2020.
• Adjusted EBITDA: After adding back non-cash operating expenses, depreciation and amortization, interest and stock-based compensation, Adjusted EBITDA for the 12 months ended September 30, 2021 was $1.7 million, as compared with an Adjusted EBITDA loss of $2.5 million for the 12 months ended September 30, 2020.
• Net Loss: For the 12 months ended September 30, 2021, net loss attributable to the Company was $10.9 million, or net loss of ($0.14) per share, compared with a net loss of $12.3 million, or ($0.20) per share, for the 12 months ended September 30, 2020.
• Cash: Cash and cash equivalents totaled $1.5 million as of September 30, 2021.

Conference Call and Webcast Information – Tuesday, January 18, 2022 at 2:00 p.m. ET (11:00 a.m. PT)

Item 9 Labs Corp.’s Chief Executive Officer Andrew Bowden and Chief Financial Officer Bobby Mikkelsen will host the Company’s FY2021 results call.

• Date: Tuesday, January 18, 2022
• Time: 2:00 p.m. Eastern time (11:00 a.m. Pacific time)
• Access by Zoom: A live and archived webcast will be available via Sequire, click on this webcast link to register or access the replay.
• Access by Phone: Please call the conference telephone number 10-15 minutes prior to the start time:
  • Dial-in number: 346-248-7799
  • Meeting ID: 94813716572
  • Passcode: 562012
• Questions: Please submit questions to investors@item9labs.com before the presentation begins. The management team will do their best to answer all questions.

About Item 9 Labs Corp.
Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The award-winning Item 9 Labs brand specializes in best-in-class products and user experience across several cannabis categories. The company also offers a unique dispensary franchise model through the national Unity Rd. retail brand. Easing barriers to entry, the franchise provides an opportunity for both new and existing dispensary owners to leverage the knowledge, resources, and ongoing support needed to thrive in their state compliantly and successfully. Item 9 Labs brings the best industry practices to markets nationwide through distinctive retail experience, cultivation capabilities, and product innovation. The veteran management team combines a diverse skill set with deep experience in the cannabis sector, franchising, and the capital markets to lead a new generation of public cannabis companies that provide transparency, consistency, and well-being. Headquartered in Arizona, the company is currently expanding its operations space up to 640,000+ square feet on its 50-acre site, one of the largest properties in Arizona zoned to grow and cultivate flower. For additional information, visit item9labscorp.com.

Use of Non-GAAP Financial Measures
To supplement the Company’s financial statements presented on a GAAP basis, Item 9 Labs Corp. provides Adjusted EBITDA as a supplemental measure of its performance. To provide investors with additional insight and allow for a more comprehensive understanding of the information used by management in its financial and decision-making surrounding pro forma operations, Item 9 Labs Corp. supplements its consolidated financial statements presented on a basis consistent with U.S. generally accepted accounting principles, or GAAP, with Adjusted EBITDA as a non-GAAP financial measure of earnings. Adjusted EBITDA represents EBITDA plus stock-based compensation and acquisition related expenses. Item 9 Labs Corp. management uses Adjusted EBITDA as a financial measure to evaluate the profitability and efficiency of the business model. The Company uses these non-GAAP financial measures to assess the strength of the underlying operations of the business. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze its operations between periods and over time. Item 9 Labs Corp. finds this especially useful when reviewing pro forma results of operations, which include large non-cash amortizations of intangible assets from acquisitions and stock-based compensation. Investors should consider its non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including, but not limited to, risks and effects of legal and administrative proceedings and governmental regulation, especially in a foreign country, future financial and operational results, competition, general economic conditions, proposed transactions that are not legally binding obligations of the company and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include the introduction of new technology, market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Media Contact:
Item 9 Labs Corp.
Jayne Levy, VP of Communications
Email: Jayne@item9labs.com

Investor Contact:
Item 9 Labs Corp.
800-403-1140
Email: investors@item9labs.com

SOURCE Item 9 Labs Corp.

Item 9 Labs Corp. Reports Record FY 2021 Annual Financial Results with Revenue Growth of 170% to $21.9 Million Revenue

Research, News, and Market Data on Item 9 Labs

 

– Cultivation, Production and Processing Expansion Ongoing in Arizona and Nevada

– Unity Rd. Brand Accelerates Ramp by Signing Ten Agreements for National Cannabis Dispensary Franchise Expansion

– Management to Host Conference Call and Webcast to Discuss Key Operational and Financial Highlights Today at 2:00 p.m. ET

PHOENIX, Jan. 18, 2022 /PRNewswire/ — Item 9 Labs Corp. (OTCQX: INLB) (the “Company”)—a vertically integrated cannabis dispensary franchisor and operator that produces premium, award-winning products—today reported operating and financial results for the 12 months ended September 30, 2021, the Company’s fiscal year 2021 (“FY2021”). Item 9 Labs Corp. management will be hosting an earnings results call today, January 18, at 2:00 p.m. Eastern time (11:00 a.m. Pacific time); details are provided below.

Key Financial Highlights for FY2021 (compared with FY2020)

• Revenue increased 170% to $21.9 million
• Gross profit increased 161% to $8.6 million
• Gross margin remained flat at approximately 40%
• Operating loss of $5.6 million compared with operating loss of $5.4 million
• Operating expenses as a percentage of revenue declined to 65% from 107%
• Net loss of $10.9 million compared with net loss of $12.3 million
• Net loss included $5.3 million ($700,000 cash) of interest expense compared with $7.0 million ($450,000 cash)
• Adjusted EBITDA loss of $1.7 million (compared with adjusted EBITDA loss of $2.5 million)

Key Business Highlights During and Subsequent to FY2021

• Won Seven First Place Awards for Product Excellence in 2021: The Company’s premium cannabis product brand, Item Nine Labs, secured its first Cannabis Cup—the most prestigious milestone that cannabis brands strive for worldwide—taking home first place in the “vape pens” category with its Black and Blue Kush Broad Spectrum Cartridge and third place in the “pre-rolls” category with its Do-Si-Do strain. The elevated mainstream brand also earned two first-place awards, two second-place awards and one third-place award for its high-quality vape and concentrate products at the 710 Degree Cup and three first-place awards at the Errl Cup—Arizona’s largest and longest-running annual cannabis festivals and awards events. All told, the decorated brand has earned 23 awards in product competitions since its inception, including 14 first-place finishes.
• Secured $19 Million Construction-Financing Loan from Pelorus Equity Group for Expansion of Cultivation & Lab Sites in Arizona & Nevada: The financing is funding master site expansion in Arizona, including acquisition of the 45 acres of adjacent land next to the Company’s existing 19,200 square foot facility. Capacity of the Company’s Arizona operations, once all expansion is complete, is expected to be enhanced by 31x. Pelorus Equity Group is a leading provider of value-add bridge commercial real estate loans to cannabis businesses and owners with cannabis-related real estate.
• Executed Asset Purchase Agreement for a Colorado Dispensary Kickstarts National Growth Plan: Item 9 Labs Corp. plans to aggressively expand its dispensary franchise, Unity Rd., by acquiring and converting cannabis retail stores, training the local team and selling the business to new and existing Unity Rd. franchise partners. As the Company seeks to keep dispensary ownership local, this growth strategy offers turnkey investment opportunities for prospective cannabis entrepreneurs. In October, Item 9 Labs Corp. executed an Asset Purchase Agreement for an existing dispensary license and storefront in Adams County, Colorado. This will be the first corporate-owned shop under the Unity Rd. brand. Currently, the Company is awaiting regulatory approval by Colorado’s Marijuana Enforcement Division (the “MED”) and expects the shop to be operational in the first half of 2022. Item 9 Labs Corp. plans to operate the store for 6-18 months and utilize it for franchise partner and team training as well as tours with prospective franchise partners.
• Expanded Footprint of Unity Rd. Dispensary Franchise into New England: Item 9 Labs Corp. signed agreements with entrepreneurial groups for development in New Jersey and Virginia and is currently assisting the New Jersey groups in submitting their dispensary license applications in March. The Company also signed a lease in Maine for the state’s first Unity Rd. shop and is awaiting license approval from the state.
• Signed First Unity Rd. Agreement in South Dakota: Unity Rd. kicked off local expansion in South Dakota with the signing of an agreement that will bring the brand’s first shop to the Mount Rushmore State. The retailer has partnered with local serial entrepreneur BJ Olson and his business partner to develop at least one Unity Rd. shop and is currently guiding them through the state’s dispensary license process.
• Joined the International Franchise Association (IFA), Solidifying Position as First Cannabis Dispensary Franchise to Become Members: Utilizing the franchise business model for national development, Unity Rd. continues to blaze trails by becoming the first brand of its kind to be named an IFA member. The organization’s membership base includes more than 1,000 franchise brands across 300 industries, and Unity Rd. is currently the sole franchise model to represent the plant-touching cannabis space.
• Enhanced Board of Directors with Two Independent Appointments: Item 9 Labs Corp. recently named Eric C. Kutscher, Pharm. D., M.B.A., F.A.S.H.P., and Lawrence X. Taylor to its Board of Directors. Kutscher and Taylor bring a combined 55-plus years of experience across patient-centered healthcare, leadership, M&A and strategic planning. Their appointments demonstrate the Company’s focus on strengthening its corporate governance through more independent directors.
• Bolstered Franchise and Marketing Teams with Key Hires to Support Company Growth: Throughout the second half of 2021, Item 9 Labs Corp. made several strategic management hires to support national franchise expansion of Unity Rd. and accelerate momentum across the franchise and Item Nine Labs products: Mike Keskey II as General Counsel, Kristen Mathis as Vice President of Marketing, Tracy Timko as Director of Franchise Support, Erica Tarnowski as Franchise Development Manager, and Emily Gritti as Senior Manager of Trade Marketing & Events.

Management Commentary

Item 9 Labs Corp.’s Chief Executive Officer, Andrew Bowden, stated, “Our company has never been in a better position. With Arizona’s adult-use sales going live in January 2021, our products and brand have been gaining tremendous traction. We have grown to $2 million in revenue per month and solidified our spot in Arizona as one of the top brands in every dispensary we sell through, which is more than 50% of Arizona’s dispensaries. The state’s combined adult-use and medical markets have continuously grown each month and $1 billion in annual sales in November. With expansion underway at our Arizona site that will add 45,000 square feet, we will be in a position to meet this increased demand in the second half of 2022 with our additional cultivation, production, and processing space.”

Item 9 Labs Corp.’s Chief Strategy Officer, Jeffrey Rassas, commented, “Our cannabis dispensary franchise, Unity Rd., is already gaining strong traction and our team is executing a strategic initiative to expand the brand’s footprint from coast to coast. We have a national acquisition plan to accelerate expansion and began executing a couple months ago with our first deal in Adams County, Colorado. We have a robust pipeline of opportunities across a wide range of appealing states and expect to make further announcements over the next few months. There are a tremendous amount of synergies we gained from the acquisition of Unity Rd.’s parent company, OCG Inc., including expanded business offerings and expertise, operational efficiencies, cost savings and revenue upside.”

Item 9 Labs Corp.’s Chief Financial Officer, Bobby Mikkelsen, commented, “With our 170% annual growth in revenue to $21.9 million, we have demonstrated the scalability of our business throughout fiscal year 2021 and saw growth and profitability in the second and third quarters. In the fourth quarter and through the end of December 2021, we have made additional hires, continued development of our Nevada site and began construction on our site in Arizona, which has caused our expenses to rise. While we build out our capabilities and bolster our team for future growth, we are confident in the greater demand and believe we are strengthening our position for increased business in Arizona.”

Arizona Master Cultivation Site Expansion

In November, Item 9 Labs Corp. broke ground on the initial phase of the master expansion of its Coolidge, Arizona cultivation & lab site. $13.5 million of the proceeds from the Pelorus loan will go toward this initial buildout, which more than doubles current operations space. As part of the expansion, the Company recently acquired the neighboring 45 acres of the site. At 50 acres, the site is one of the largest properties in Arizona that is zoned to grow and cultivate flower. The initial development phase is estimated to be completed in Summer 2022 and includes the construction of three steel buildings and two greenhouses – adding 9,600 square feet for indoor cultivation, 9,600 square feet of lab and packaging and a 9,600 square foot head house to support the addition of the two 18,000 square foot greenhouses.

With this initial expansion phase, the Company expects to increase output of cannabis plant material by 250-300%, with a per unit cost reduction of at least 30%. Further, the additional greenhouses will reduce reliance on third-party sourced material for lab productions by 40-50%. Expansion of the existing lab allows for the addition of more state-of-the-art equipment for all extraction processes, which will support product diversification.

Nevada Cultivation Site Expansion

The remaining proceeds from the Pelorus loan are to complete the Company’s 20,000 square foot facility in Pahrump, Nevada that is currently approximately 85% finished. The expansion includes 4,450 square feet for flower, 990 square feet of vegetation space, 400 square feet for clones, 300 square feet for dry curing and 615 square feet of space for genetics. The facility also includes more than 2,500 square feet of post-processing and lab space, along with the opportunity for a joint venture with a 1,100 square foot commercial kitchen. The remainder of the building is ancillary rooms such as water rooms, offices, locker rooms and break rooms. Item 9 Labs Corp. anticipates the Nevada facility will be operational in Spring 2022.

Financial Results for FY2021 Ended September 30, 2021

• Revenue: For the 12 months ended September 30, 2021, revenue was $21.9 million, an increase of $13.8 million, or 170%, compared with $8.1 million for the 12 months ended September 30, 2020. This growth was primarily driven by the Company investing in increased production capacity to better meet the market demand of Item Nine Labs products.
• Gross Profit: For the 12 months ended September 30, 2021, gross profit was $8.6 million, an increase of $5.3 million, or 161%, compared with $3.3 million for the 12 months ended September 30, 2020. The resulting gross margin was 39%, compared with 41% for the 12 months ended September 30, 2020. The Company experienced lower gross profit margins in the fourth quarter of 2021 due to price reductions as competition rises in Arizona. Additionally, to deepen the market penetration of Item Nine Labs products, the Company sourced plant and extract materials from third parties, the effect of which is higher gross profit, but lower gross margin.
• Total Operating Expenses: For the 12 months ended September 30, 2021, total operating expenses were $14.2 million, an increase of $5.5 million, or 63%, compared with $8.7 million for the 12 months ended September 30, 2020. The Company has invested heavily into FY2021 and 2022 to meet growing demand in Arizona as well as funding the build out of its cultivation and lab site in the Grand Canyon State. Management believes this will improve earnings and future cash position. Operating expenses as a percentage of revenue decreased to 65% from 107%, reflecting the Company’s focus on increasing revenue and scaling its platform more efficiently. Management believes this ratio will decrease going forward as it scales the business.

  Of note, $7.8 million of the Company’s operating expenses for the 12 months ended September 30, 2021 were non-cash expenses, including depreciation, amortization and stock-based compensation.

  Of note, $3.9 million of interest expense in 2021 is non-cash amortization of the debt discount.

• Operating Loss: For the 12 months ended September 30, 2021, operating loss was $5.6 million, in-line with an operating loss of $5.4 million for the 12 months ended September 30, 2020.
• Adjusted EBITDA: After adding back non-cash operating expenses, depreciation and amortization, interest and stock-based compensation, Adjusted EBITDA for the 12 months ended September 30, 2021 was $1.7 million, as compared with an Adjusted EBITDA loss of $2.5 million for the 12 months ended September 30, 2020.
• Net Loss: For the 12 months ended September 30, 2021, net loss attributable to the Company was $10.9 million, or net loss of ($0.14) per share, compared with a net loss of $12.3 million, or ($0.20) per share, for the 12 months ended September 30, 2020.
• Cash: Cash and cash equivalents totaled $1.5 million as of September 30, 2021.

Conference Call and Webcast Information – Tuesday, January 18, 2022 at 2:00 p.m. ET (11:00 a.m. PT)

Item 9 Labs Corp.’s Chief Executive Officer Andrew Bowden and Chief Financial Officer Bobby Mikkelsen will host the Company’s FY2021 results call.

• Date: Tuesday, January 18, 2022
• Time: 2:00 p.m. Eastern time (11:00 a.m. Pacific time)
• Access by Zoom: A live and archived webcast will be available via Sequire, click on this webcast link to register or access the replay.
• Access by Phone: Please call the conference telephone number 10-15 minutes prior to the start time:
  • Dial-in number: 346-248-7799
  • Meeting ID: 94813716572
  • Passcode: 562012
• Questions: Please submit questions to investors@item9labs.com before the presentation begins. The management team will do their best to answer all questions.

About Item 9 Labs Corp.
Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The award-winning Item 9 Labs brand specializes in best-in-class products and user experience across several cannabis categories. The company also offers a unique dispensary franchise model through the national Unity Rd. retail brand. Easing barriers to entry, the franchise provides an opportunity for both new and existing dispensary owners to leverage the knowledge, resources, and ongoing support needed to thrive in their state compliantly and successfully. Item 9 Labs brings the best industry practices to markets nationwide through distinctive retail experience, cultivation capabilities, and product innovation. The veteran management team combines a diverse skill set with deep experience in the cannabis sector, franchising, and the capital markets to lead a new generation of public cannabis companies that provide transparency, consistency, and well-being. Headquartered in Arizona, the company is currently expanding its operations space up to 640,000+ square feet on its 50-acre site, one of the largest properties in Arizona zoned to grow and cultivate flower. For additional information, visit item9labscorp.com.

Use of Non-GAAP Financial Measures
To supplement the Company’s financial statements presented on a GAAP basis, Item 9 Labs Corp. provides Adjusted EBITDA as a supplemental measure of its performance. To provide investors with additional insight and allow for a more comprehensive understanding of the information used by management in its financial and decision-making surrounding pro forma operations, Item 9 Labs Corp. supplements its consolidated financial statements presented on a basis consistent with U.S. generally accepted accounting principles, or GAAP, with Adjusted EBITDA as a non-GAAP financial measure of earnings. Adjusted EBITDA represents EBITDA plus stock-based compensation and acquisition related expenses. Item 9 Labs Corp. management uses Adjusted EBITDA as a financial measure to evaluate the profitability and efficiency of the business model. The Company uses these non-GAAP financial measures to assess the strength of the underlying operations of the business. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze its operations between periods and over time. Item 9 Labs Corp. finds this especially useful when reviewing pro forma results of operations, which include large non-cash amortizations of intangible assets from acquisitions and stock-based compensation. Investors should consider its non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including, but not limited to, risks and effects of legal and administrative proceedings and governmental regulation, especially in a foreign country, future financial and operational results, competition, general economic conditions, proposed transactions that are not legally binding obligations of the company and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include the introduction of new technology, market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Media Contact:
Item 9 Labs Corp.
Jayne Levy, VP of Communications
Email: Jayne@item9labs.com

Investor Contact:
Item 9 Labs Corp.
800-403-1140
Email: investors@item9labs.com

SOURCE Item 9 Labs Corp.

Motorsport Games And Live Fast Motorsports Announce Increased Partnership For 2022 Nascar Season

Research, News, and Market Data on Motorsport Games

 

MOTORSPORT GAMES WILL GAIN UNPRECEDENTED ACCESS TO THE NASCAR TEAM ASSISTING IN THE DEVELOPMENT OF ITS GAMING FRANCHISE THROUGH A TECHNICAL PARTNERSHIP

MIAMI, Jan. 17, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”), a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, announces today its increased technical partnership with Live Fast Motorsports, the single-car Ford Mustang team competing full-time in the NASCAR Cup Series under the No. 78 car. This deal will advance the partnership between Motorsport Games and Live Fast Motorsports, co-owned by driver BJ McLeod and Matt Tifft, that began last year.

The technical partnership will expand Motorsport Games’ access to the real-life NASCAR grid throughout the 2022 racing season, including tracks, nuances and feedback of professional stock car driving and key data at the team’s disposal. Motorsport Games already has strong access to NASCAR through its work with the series, but this partnership will serve to increase its ability to communicate with a team on a more intimate level. Throughout the agreement’s term, Motorsport Games will be present within the Live Fast Motorsports garage, opening up lines of communication previously unavailable between racing team personnel and Motorsport Games. Motorsport Games will additionally gain real-time experience and feedback that it plans to implement directly into its NASCAR video game franchise, including the ability to make real-time updates into its NASCAR 21: Ignition and future titles, and that overall is designed to provide racing enthusiasts with the most realistic and authentic driving experience on the market.

“Motorsport Games cannot have asked for a better strategic partner than Live Fast Motorsports and we look forward to continuing our collaboration into the next NASCAR season,” said George Holmquist, VP of Publishing and Marketing, Motorsport Games. ”BJ, Matt and the entire Live Fast Motorsports team have been fantastic partners and we cannot thank them enough for the unparalleled level of access they are giving our company. We will be taking our real-time on track findings directly from the team on the NASCAR grid into our game designs, further exemplifying our commitment to providing our players with the most dynamic and true to life gaming experience imaginable.”

“Throughout the past year, Motorsport Games has been an amazing partner to the No. 78 car and we’re excited to keep the momentum going by representing the company in seven of the biggest races next season,” said BJ McLeod, driver and co-owner, Live Fast Motorsports. ”I’ve always been a personal fan of video games, especially those involving my favorite sport. It’s exciting to have this opportunity to provide feedback throughout the season to help create the best NASCAR game possible. I can’t wait to get started this season with Motorsport Games at Daytona all the way through Martinsville.”

“We’re thrilled to welcome Motorsport Games back as our partner for the second year. Last year, they became our founding partner and we had a terrific season together,” added Matt Tifft, co-owner of Live Fast Motorsports. “Motorsport Games has given us the ability to better connect with our younger fans on a more intimate level through its video games. This year, we look forward to keeping the engagement rolling with our expanded partnership. Our entire Live Fast Motorsports family welcomes back Motorsport Games, as they are truly one of our own.”

NASCAR 21: Ignition, the current iteration of Motorsport Games’ NASCAR franchise for the 2021 NASCAR Cup Series, is available now on Sony PlayStation 4, Microsoft Xbox One and PC through the Steam store. NASCAR 21: Ignition is developed and published by Motorsport Games and is powered by Unreal Engine and Studio 397’s highly-acclaimed rFactor physics engine. The use of both Unreal Engine and rFactor physics gives users a more authentic driving experience, immersive gameplay, dynamic AI and stunning visuals.

To keep up with the latest Motorsport Game news, please visit www.motorsportgames.com and follow on Twitter, Instagram, Facebook and LinkedIn.

About Motorsport Games:
Motorsport Games, a Motorsport Network company, combines innovative and engaging video games with exciting esports competitions and content for racing fans and gamers around the globe. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), across PC, PlayStation, Xbox, Nintendo Switch and mobile. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. For more information about Motorsport Games, visit www.motorsportgames.com.

Forward-Looking Statements:
Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the Company’s expected benefits from its partnership with Live Fast Motorsports, such as its plans to implement real-time experience and feedback directly into its NASCAR video game franchise, including making real-time updates into its NASCAR 21: Ignition and future titles, and will provide racing enthusiasts with the most realistic and authentic driving experience on the market. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to difficulties, delays or less than expected results in achieving the Company’s expected benefits from its partnership with Live Fast Motorsports, such as due to unforeseen technical difficulties, or higher than anticipated costs, in implementing the Live Fast Motorsports real-time data into its gaming franchises, such as its NASCAR 21: Ignition franchise. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the SEC, which may be found at www.sec.gov and at ir.motorsportgames.com, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its Quarterly Reports on Form 10-Q filed with the SEC during 2021, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.

Website and Social Media Disclosure:
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on these websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):

The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.

Investors:
Ashley DeSimone
Ashley.Desimone@icrinc.com

Press:
ASTRSK PR
motorsportgames@astrskpr.com

Friday, January 14, 2022

Engine Media (GAME)(GAME:CA)
Quarter Illustrates The Wisdom Of Diversified Revenue Streams

Engine Media Holdings Inc is engaged in esports data provision, esports tournament hosting, and esports racing. Its brand profile includes Eden Games, Allin sports, and UMG, and others. The company’s operating segments include E-Sports; Media and Advertising and Corporate and Other. It generates maximum revenue from the Media and Advertising segment. The Media and Advertising segment includes platform and advertising services provided to other broadcasters, primarily local tv and radio broadcasters.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Exceeds fiscal Q1 expectations. The company’s fiscal year started off strongly, with first quarter revenues exceeding our expectations ($14.3 million versus our $12.3 million estimate). First quarter revenues grew 92% year-over-year from $7.5 million in the first quarter of fiscal 2021. Adjusted EBITDA loss of $4.9 million was largely in line with our $4.7 million loss estimate.


Advertising, Game and SaaS were strong.  The company’s software-as-a-service (SaaS) revenue grew 45% from the previous year quarter to $2.1 million. Advertising revenue grew 84% compared with the previous year quarter of $5.5 million, topping our forecast of $6 million by 65%. Game development revenue also topped our forecast, growing 320% year-over-year with $2.1 million compared to our estimate of …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

24 Hours of Le Mans Virtual eRacing Finale Event to be Broadcast Digitally Around the World

Research, News, and Market Data on Motorsport Games

 

FINALE OF THIS YEAR’S LE MANS VIRTUAL SERIES TO BE BROADCAST JANUARY 15 AND 16, 2022

MIAMI, Jan. 14, 2022 (GLOBE NEWSWIRE) — A host of major broadcasters, including Motor Trend in the USA and Eurosport across Europe and Asia, will televise this weekend’s 24 Hours of Le Mans Virtual Series eRacing Finale Event on January 15 and 16, 2022, bringing the exhilarating combined world of motorsport and esports to millions of homes across the globe. This marks the culmination of this year’s series, made possible through a joint venture between Motorsport Games (NASDAQ: MSGM) and the Automobile Club de l’Ouest (ACO).

A special TV show covering this unique two-day event will be produced live from Paris and will include an expert commentary team made up of FIA World Endurance Championship lead commentator Martin Haven, esports experts Chris McCarthy and Lewis McGlade, motorsport commentator Ben Constanduros, plus “pitlane” reporter Hayley Edmonds. Also in the studio will be current WEC competitor, 2020 Le Mans Virtual driver and FIA F2 and F3 commentator Alex Brundle to bring a driver’s eye to proceedings.

The 200 eRacing drivers – representing 39 different nationalities – piloting the 50 cars (4-drivers in each car in rotation over the 24 hours) will be located in 28 different countries. This is fully reflected in the digital interest from broadcasters globally.

Eurosport will cover the full 2-day eRace event live throughout its European regions on Eurosport Player, and global coverage will be on Motorsport.tv. Also airing the full 24 hours on OTT channels in Europe will be L’Equipe Live in France, Sport 10 (pay TV), RTBF Auvio (OTT) in Belgium and Viaplay in Sweden, Norway and Finland. Sport 1 in Germany, Austria and Switzerland will show a special 44 minute program on Sunday evening, broadcasted on free-to-air TV with a potential reach of 72 million viewers.

Motor Trend will cover the full eRace live in North America on its OTT service, while Star+ will show the 24 Hours of Le Mans Virtual eRacing Finale Event in Latin America plus Brazil. SuperSport DStv will take the broadcast live on its dedicated motorsport channel across Africa, thus extending the coverage to five continents around the world.

Finally, the ACO and FIA WEC’s official social media channels will be showing all the action live from start to finish, as will the Le Mans Virtual Series official website (www.lemansvirtual.com). The broadcast begins at 7:30 AM EST (13:30 CET/12:30 GMT) and the famous French national flag will be dropped for the start of the biggest endurance esports event of the year at 8:00 AM EST (14:00 CET/13:00 GMT).

More information including press releases, visuals, official poster and a presentation can be found HERE. All information on the event can also be found on www.lemansvirtual.com.

About Le Mans Virtual Series
Le Mans Virtual Series is a global, elite esports series made up of five rounds which bring together endurance racing and sim racing’ top teams to compete on some of the world’s most famous racetracks. International FIA-licensed real-world drivers are teamed up with leading esports protagonists to take on endurance classics for a total prize fund of US $250,000, culminating in the prestigious 24 Hours of Le Mans Virtual which will take place entirely online. The Le Mans Virtual Series is a joint venture between leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, Motorsport Games, and the Automobile Club de l’Ouest (ACO) – the creator and organizer of the world-famous 24 Hours of Le Mans and promoter of the FIA World Endurance Championship (FIA WEC). www.lemansvirtual.com

About Motorsport Games
Motorsport Games, a Motorsport Network company, combines innovative and engaging video games with exciting esports competitions and content for racing fans and gamers around the globe. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), across PC, PlayStation, Xbox, Nintendo Switch and mobile. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. For more information about Motorsport Games, visit www.motorsportgames.com.

Forward-Looking Statements:
Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the expected future impact of new or planned products, features, offerings or events, including, without limitation the Le Mans Virtual Series events, and the timing of launching such products, features, offerings or events. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to difficulties, delays in or unanticipated events that may impact the timing and scope of new product launches, such as due to delays and higher than anticipated expenses related to the ongoing and prolonged COVID-19 pandemic. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the SEC, which may be found at www.sec.gov and at ir.motorsportgames.com, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its Quarterly Reports on Form 10-Q filed with the SEC during 2021, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.

Website and Social Media Disclosure:
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on these websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):     

The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.

Investors:
Ashley DeSimone
Ashley.Desimone@icrinc.com

US Press:
ASTRSK PR
motorsportgames@astrskpr.com

EU / UK Press:
Swipe Right PR
motorsport@swipterightpr.com

24 Hours of Le Mans Virtual eRacing Finale Event to be Broadcast Digitally Around the World

Research, News, and Market Data on Motorsport Games

 

FINALE OF THIS YEAR’S LE MANS VIRTUAL SERIES TO BE BROADCAST JANUARY 15 AND 16, 2022

MIAMI, Jan. 14, 2022 (GLOBE NEWSWIRE) — A host of major broadcasters, including Motor Trend in the USA and Eurosport across Europe and Asia, will televise this weekend’s 24 Hours of Le Mans Virtual Series eRacing Finale Event on January 15 and 16, 2022, bringing the exhilarating combined world of motorsport and esports to millions of homes across the globe. This marks the culmination of this year’s series, made possible through a joint venture between Motorsport Games (NASDAQ: MSGM) and the Automobile Club de l’Ouest (ACO).

A special TV show covering this unique two-day event will be produced live from Paris and will include an expert commentary team made up of FIA World Endurance Championship lead commentator Martin Haven, esports experts Chris McCarthy and Lewis McGlade, motorsport commentator Ben Constanduros, plus “pitlane” reporter Hayley Edmonds. Also in the studio will be current WEC competitor, 2020 Le Mans Virtual driver and FIA F2 and F3 commentator Alex Brundle to bring a driver’s eye to proceedings.

The 200 eRacing drivers – representing 39 different nationalities – piloting the 50 cars (4-drivers in each car in rotation over the 24 hours) will be located in 28 different countries. This is fully reflected in the digital interest from broadcasters globally.

Eurosport will cover the full 2-day eRace event live throughout its European regions on Eurosport Player, and global coverage will be on Motorsport.tv. Also airing the full 24 hours on OTT channels in Europe will be L’Equipe Live in France, Sport 10 (pay TV), RTBF Auvio (OTT) in Belgium and Viaplay in Sweden, Norway and Finland. Sport 1 in Germany, Austria and Switzerland will show a special 44 minute program on Sunday evening, broadcasted on free-to-air TV with a potential reach of 72 million viewers.

Motor Trend will cover the full eRace live in North America on its OTT service, while Star+ will show the 24 Hours of Le Mans Virtual eRacing Finale Event in Latin America plus Brazil. SuperSport DStv will take the broadcast live on its dedicated motorsport channel across Africa, thus extending the coverage to five continents around the world.

Finally, the ACO and FIA WEC’s official social media channels will be showing all the action live from start to finish, as will the Le Mans Virtual Series official website (www.lemansvirtual.com). The broadcast begins at 7:30 AM EST (13:30 CET/12:30 GMT) and the famous French national flag will be dropped for the start of the biggest endurance esports event of the year at 8:00 AM EST (14:00 CET/13:00 GMT).

More information including press releases, visuals, official poster and a presentation can be found HERE. All information on the event can also be found on www.lemansvirtual.com.

About Le Mans Virtual Series
Le Mans Virtual Series is a global, elite esports series made up of five rounds which bring together endurance racing and sim racing’ top teams to compete on some of the world’s most famous racetracks. International FIA-licensed real-world drivers are teamed up with leading esports protagonists to take on endurance classics for a total prize fund of US $250,000, culminating in the prestigious 24 Hours of Le Mans Virtual which will take place entirely online. The Le Mans Virtual Series is a joint venture between leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, Motorsport Games, and the Automobile Club de l’Ouest (ACO) – the creator and organizer of the world-famous 24 Hours of Le Mans and promoter of the FIA World Endurance Championship (FIA WEC). www.lemansvirtual.com

About Motorsport Games
Motorsport Games, a Motorsport Network company, combines innovative and engaging video games with exciting esports competitions and content for racing fans and gamers around the globe. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), across PC, PlayStation, Xbox, Nintendo Switch and mobile. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. For more information about Motorsport Games, visit www.motorsportgames.com.

Forward-Looking Statements:
Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the expected future impact of new or planned products, features, offerings or events, including, without limitation the Le Mans Virtual Series events, and the timing of launching such products, features, offerings or events. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to difficulties, delays in or unanticipated events that may impact the timing and scope of new product launches, such as due to delays and higher than anticipated expenses related to the ongoing and prolonged COVID-19 pandemic. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the SEC, which may be found at www.sec.gov and at ir.motorsportgames.com, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its Quarterly Reports on Form 10-Q filed with the SEC during 2021, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.

Website and Social Media Disclosure:
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on these websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):     

The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.

Investors:
Ashley DeSimone
Ashley.Desimone@icrinc.com

US Press:
ASTRSK PR
motorsportgames@astrskpr.com

EU / UK Press:
Swipe Right PR
motorsport@swipterightpr.com