Ese Entmt - ENTEF STOCK NEWS

ESE Entertainment Inc. (TSXV:ESE, OTCQX:ENTEF) reported the successful production of live esports events, including the Ultraliga finals for League of Legends and the Ekstraklasa Games for FIFA23. The events, held in Poland on March 31 and April 1-2, attracted significant viewership, with over 400,000 views and a peak of nearly 37,000 during broadcasts on Polsat Games.

The company partnered with various organizations, including Riot Games and Electronic Arts, to deliver these events, generating over 2.3 million social media impressions. Additionally, ESE announced a debt settlement involving the issuance of 70,175 common shares at a deemed price of $0.57 per share to settle a CAD $40,000 debt.

ESE Entertainment Inc. (TSXV:ESE)(OTCQX:ENTEF) has sold its subsidiaries Digital Motorsports and Frenzy for CAD$41 million (approximately $30.4 million). This move is seen as a strategic shift to enhance focus on its core operations and improve liquidity. The gaming market is projected to grow significantly, with the global market expected to reach $217.9 billion in 2023, presenting growth opportunities for ESE.

The sale reflects rising valuations in the esports sector and is expected to bolster ESE’s balance sheet, allowing for potential new investments and better margin management. The transaction is anticipated to close through an amalgamation with a Nasdaq-listed SPAC. The CEO emphasized that this divestiture aims to highlight the value of ESE's key technology, GameAddik, and drive future profitability.

ESE Entertainment Inc. (TSXV:ESE)(OTCQX:ENTEF) reported Q1 2023 financial results, showcasing a revenue of $13.92 million, a 73% increase from Q1 2022. The gross profit surged 283% to $2.45 million, and the company achieved a positive Adjusted EBITDA of $9,480, reversing a previous loss. Total assets reached $18.87 million, reflecting a strong current ratio. CEO Konrad Wasiela emphasized ongoing strategic actions, including the LOI for selling Frenzy and Digital Motorsports for $41 million, and a focus on core IP, GameAddik, to drive long-term profitability and value creation for shareholders.

ESE Entertainment Inc. announced that CEO Konrad Wasiela will appear on Benzinga's 'Live Trading with Benzinga' show on March 31, 2023, starting at 9:00 a.m. Eastern time. The live stream will be available on Benzinga's YouTube channel, where Mr. Wasiela will discuss the company's recent Letter of Intent (LOI), upcoming financials, and strategic plans for the year. ESE is focused on gaming and esports, providing services to video game developers and brands, and operates e-commerce channels, esports teams, and gaming leagues globally. Viewers can access the live stream at this link.

ESE Entertainment Inc. (OTCQX:ENTEF) announced a Letter of Intent for the sale of its subsidiaries, Digital Motorsports and Frenzy, valued at CAD$41 million. This move aims to unlock the true value of ESE's assets, as these subsidiaries represent about 17% of the company’s total sales. The sale is expected to enhance ESE's cash reserves and improve its balance sheet while allowing the company to focus more on its core technology, specifically GameAddik. The transaction may involve an amalgamation resulting in shares of a new entity that would trade on NASDAQ, further linking ESE's growth to performance milestones.

ESE Entertainment Inc. (TSXV:ESE)(OTCQX:ENTEF) has announced a non-binding letter of intent (LOI) dated March 28, 2023, for the acquisition of its subsidiaries, Digital Motorsports and Frenzy, by a U.S. SPAC in a transaction valued at CAD $41 million. The SPAC has over CAD $130 million in cash available. The transaction aims for an amalgamation or merger, subject to satisfactory due diligence and regulatory approvals, including from TSX Venture Exchange and NASDAQ. Completion is uncertain, and no finder’s fees are involved. Further information will follow upon entering a binding agreement.

ESE Entertainment Inc. recently announced CEO Konrad Wasiela's appearance on CBC's 'Player's Own Voice' podcast, where he discussed the growth and commercial potential of the esports market. This opportunity aims to expand the company's reach to shareholders and stakeholders, reinforcing ESE's commitment to the esports sector. Additionally, ESE has entered a three-month marketing services agreement with Thesis Marketing Inc., entailing a fee of $14,000 per month, totaling $42,000, pending TSX Venture Exchange approval. These initiatives underline ESE's focus on enhancing its market presence and exploring organic growth and selective acquisitions.

ESE Entertainment reported record annual revenue of $58.82 million for fiscal 2022, reflecting a 417% increase year-over-year. The company also achieved a record quarterly revenue of $19.86 million in Q4 2022, marking a 218% rise from the prior year. Gross profit soared to $7.70 million, a 569% improvement compared to fiscal 2021. Despite showing progress, ESE reported an adjusted EBITDA loss of $0.18 million, an improvement from a loss of $3.50 million in the previous fiscal year. The total assets increased by 38% to $21.45 million. The management expressed optimism for continued growth and profitability in 2023.