With esports on the verge of breaking into mass-market popularity, TGS Esports (Canada: TGS) (Europe: 5RH) has been rapidly positioning itself to be ready for the wave to break. 2020 proved that the company could rapidly reiterate and capitalize upon the online market, while in-person events weren’t possible.
2021 brings new opportunities and with it, new priorities. Here are some highlights from the past few weeks:
- Announced a $1,000,000 financing, issuing 5,555,555 units consisting of 1 common share at $0.18, and 1 warrant at $0.25
- Acquired 100% of Volcanic Media in a $240,000 tranche-style deal
- Partnered with Aces 5 and Crimson Wings to launch a-first-of-its-kind Star Wars Squadron series, dubbed the Calrissian Cup, featuring a $15,000 prize pool
Continue reading to dive deeper into the updates.
Strategic Financing
TGS is in the process of completing a $1,000,000 non-brokered strategic financing round to deploy general working capital into the company. As a highly encouraging sign for all shareholders, company insiders will be participating in this round. This means that management and other insiders are looking to increase their exposure to the company’s upside and serves as a strong bullish indicator from the team.
The financing will issue 5,555,5555 units to investors, comprised of 1 common share at a price of $0.18, and 1 full warrant exercisable at $0.25. The Warrants have a 2-year expiry; however, they are subject to an acceleration based on the stock price. The specific terms of this acceleration clause are that, if TGS’ stock price remains at or above $0.40 for 10 consecutive trading days, investors holding these warrants will have to exercise them within a 30-day period. This essentially turns this round into a tranche-style financing, wherein investors are making an initial capital outlay for shares and warrants, while also agreeing to exercise options if the company can bring its share price up for a sustained period.
This clause would, in theory, provide the company with an additional $1.38M if all warrants were exercised. At the agreed-upon acceleration price, all warrants would be “in the money”, so it’s expected that all, or close to all, warrants will be exercised.
Volcanic Media Acquisition
As a foray into the younger demographic (I.e., those who are in high school and university) that makes up a large, growing percentage of the online gaming market, TGS strategically acquired 100% of Volcanic Media.
Perched at the forefront of scholastic esports in Canada, Volcanic has created Canada’s premier inter–district high school esports league and scholarship program. TGS has worked with Volcanic prior to acquisition discussions, with the successful creation of an esports tournament spanning across 12 schools and two video games.
Volcanic has also partnered up with various Indigenous communities, including the Binche Keyoh First Nations, providing event experiences, career growth opportunities, and reconciliation; all through the platform of esports. These scholastic leagues will eventually take place nation to nation, with programs such as skills development being deployed at a higher level. Shawn Caldera and JP Perez, the minds behind Volcanic, will enter into consulting agreements with TGS; Caldera as the Scholastic Esports Director and Perez as the Scholastic Esports Manager.
Calrissian Cup
A new series has been launched through the TGS platform, in partnership with Aces 5 and Crimson Wings. This series will be the first major ongoing Star Wars Squadron esports event and will capitalize upon the growing popularity of the game and its association with the hit franchise. With monthly events being held from January 16th until October 3rd, there will be a total of $15,000 in the prize pool, awarded on a rolling basis.
The event will be broadcasted live on Twitch, which currently has a 40,000+ person follower base for the game. As we’ve seen with games like Fortnite and Valorant, there’s an exponential increase in the popularity of a game once leaders and professional players emerge in the space.
Alongside other recent acquisitions and partnerships, the public attention generated by this series is expected to compound into long-term benefits for the TGS ecosystem.
Follow the Links Below for the Full Releases
TGS Announces $1 Million Strategic Financing
VANCOUVER, BC, Jan. 13, 2021 /CNW/ – TGS Esports Inc. (“TGS” or the “Company”) (TSXV: TGS) (FRA: 5RH) is pleased to announce a non-brokered private placement (the “Offering”) consisting of the issuance of up to 5,555,555 units (each, a “Unit”) at a price of $0.18 per Unit for aggregate gross proceeds of $1,000,000… continue reading.
TGS, Aces 5 and Crimson Wings partner to launch Calrissian Cup, a First of its Kind Star Wars Squadron Series, Featuring a record $15,000 Prize Pool
VANCOUVER, BC, Jan. 5, 2021 /CNW/ – TGS Esports Inc. (“TGS” or the “Company”) (TSXV: TGS) (FRA: 5RH) is pleased to announce the Calrissian Cup, a $15,000 prize pool Star Wars Squadrons esports event, in partnership with Aces 5 and Crimson Wings. The $15,000 prize pool is the largest ever offered for a Star Wars Squadron series… continue reading.
TGS Esports Completes the Acquisition of Canadian Scholastic Esports and Digital Media Organization, Volcanic Media
VANCOUVER, BC, Dec. 30, 2020 /CNW/ – TGS Esports Inc. (“TGS” or the “Company”) (TSXV: TGS) (FRA: 5RH) is pleased to announce that, further to its news releases dated October 7, 2020 and November 17, 2020, it has completed its previously announced arm’s length acquisition (the “Acquisition”) of Volcanic Media Inc… continue reading.
Disclaimer: TGS Esports is a communications client of Edge Investments, and we own shares in the company.