Friday, April 14, 2023
Engine Gaming and Media, Inc. (NASDAQ:GAME) (TSX-V:GAME) provides premium social sports and esports gaming experiences, as well as unparalleled data analytics, marketing, advertising, and intellectual property to support its owned and operated direct-to-consumer properties, while also providing these services to enable its clients and partners. The company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; WinView Games, a social predictive play-along gaming platform for viewers to play while watching live events; and Frankly Media, a digital publishing platform used to create, distribute and monetize content across all digital channels. Engine Media generates revenue through a combination of direct-to-consumer fees, streaming technology and data SaaS-based offerings, and programmatic advertising. For more information, please visit www.enginegaming.com.
Michael Kupinski, Director of Research – Digital, Media & Technology Analyst, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Business arrangement complete. The company closed the previously announced business arrangement with GameSquare Esports. As part of the deal, GAME shares underwent a 1-4 reverse split and all of GameSquare Esports’ shares (GSQ) were exchanged for Game shares at a 1-for-0.02 ratio. The combined company is known as GameSquare Holdings and trades on the NASDAQ and TSX under “GAME.”
Source of additional funding. Prior to the transaction, the company offered subscription receipts for $1.25 per receipt, which fetched total gross proceeds of $9.6 million. The receipts were consolidated at 1-4 ratio, in line with the reverse stock split and converted to common “GAME” shares. The total shares outstanding post transaction are 12.9 million. We view the receipts as an important aspect of the transaction, as it shores up additional funding.
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