Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Canada
  4. Bourse de Toronto
  5. TGS Esports Inc.
  6. News
  7. Summary
    TGS   CA87250P1080

TGS ESPORTS INC.

(TGS)
SummaryQuotesChartsNewsCompany 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

TGS Esports : Announces Signing of Definitive Agreement to Acquire Even Matchup Gaming, The Largest Super Smash Bros Tournament Operator in Canada

06/07/2021 | 09:01am EDT

VANCOUVER, BC, June 7, 2021 /CNW/ - TGS Esports Inc. ("TGS" or the "Company") (TSXV: TGS) (OTC: TGSEF) (FRA: 5RH) is pleased to announce that it has signed a definitive agreement to acquire Even Matchup Gaming Inc. ("EMG"), a leading esports tournament organizer. EMG owns and operates major esports events, including Get On My Level ("GOML"), the largest fighting game tournament in Canada and Let's Make Moves, the largest Super Smash Bros. event in the New York Area (the "Acquisition").

EMG, as a leading esports event organization, is involved in the largest fighting game esports events in North America. EMG has hosted and broadcast 100+ events in the last two years. Since 2019, EMG has enjoyed 100+ million social interactions, and interacted with 18+ million viewers, with 50+ million minutes of their content consumed.

GOML, EMG's premier Super Smash Bros tournament is the largest fighting game event in Canada and the only Canadian tournament that is officially licensed by Nintendo. In 2019, GOML had over 1,700 competitors compete in their events, and 1.7 million total live views. In 2020, GOML Online had 3,000+ competitors compete and over 10 million total minutes watched.

Outsourced staff and production costs make up over 30% of EMG's event costs, the acquisition will allow EMG to leverage TGS' team and technology to scale the business into new cities and countries while drastically reducing the cost of running events.

Transaction highlights:

  • Revenue Stream Growth: EMG achieved $300,000 in revenue in 2019, and by leveraging the TGS team and infrastructure, EMG expects to grow this revenue number significantly
  • Sponsorship and Brand Partnerships: With an audience of 18.2 Million unique viewers and 50 Million minutes watched since 2019, TGS is able to offer new opportunities to its sponsors and brand partners with some of the largest fighting game events in North America
  • Player growth and audience: By leveraging TGS infrastructure, including the Pepper Platform, and Volcanic, EMG will be able to grow its player base and expand into new cities

"We have seen incredible growth over the last few years, and joining the TGS family will enable us to leverage the TGS team and infrastructure to offer more exciting events at a lower cost." said Joseph Cribari, CEO of EMG. "With the backing of TGS, we are looking forward to expanding into new markets, developing key partnerships, and continuing to grow our player base."

"EMG is a property that is synonymous with esports. I have been a big fan for a long time and am excited to work with Joe and his team to help EMG get to the next level " Spiro Khouri, CEO of TGS. "TGS works with many brands that are always looking for additional value in this space. We can now open up EMG events to our partners which creates more value while also driving expanded revenue opportunities to TGS."

Summary of Acquisition

TGS will acquire all of the issued and outstanding shares of EMG ("EMG Shares") for the aggregate purchase price of CAD$1,100,000.00 (the "Purchase Price")(the "Acquisition"); The Purchase Price will be paid via the issuance of up to 5,500,000 common shares of TGS to EMG (the "Consideration Shares") at a deemed price per share of CAD$0.20.

Joseph Cribari will enter into an employment agreement with TGS providing that Mr. Cribari will be employed with a title to be determined for a minimum period of two years from the date of closing of the Acquisition with TGS.

The Consideration Shares will be subject to a contractual lock-up, periods ranging between 24 and 36 months. The LOI contains, and the definitive agreement will provide for, customary representations, warranties and. Completion of the Acquisition remains subject to a number of conditions, including: (i) the negotiation of a definitive agreement, (ii) the completion of satisfactory due diligence, (iii) the approval of the boards of directors of the Company and EMG, (iv) obtaining all required consents, waivers and approvals, including the approval of the TSX Venture Exchange, and (vi) other customary closing conditions.

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future, including with respect to: expectations regarding whether the Acquisition will be consummated including whether the conditions to the consummation to the Acquisition will be satisfied; the timing for completing the Acquisition, if at all, and the conditions to such transaction; expectations for other economic, business, and/or competitive factors; Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of the Company. The risks include, but are not limited to, the following: the unknown magnitude and duration of the effects of the COVID-19 pandemic on the Company; the ability to consummate the Acquisition; the ability to obtain requisite regulatory or shareholder approvals and the satisfaction of other conditions to the consummation of the Acquisition on proposed terms and schedule; the potential impact of the announcement or consummation of the Acquisition on relationships; including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with extensive government regulation; the risks and uncertainties associated with foreign markets; the diversion of management time on the Acquisition; the risks associated with operating esports events such as GOML; technological risks associated with operating an esports platform; and other risks that are customary to companies operating businesses such as the business of the Company. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.

SOURCE TGS Esports Inc

© Canada Newswire, source Canada Newswire English

All news about TGS ESPORTS INC.
09/08TGS ESPORTS : Down 4% as Schedules Grand Re-Opening of Richmond, BC Facility
MT
09/07TGS Esports Inc. to Re-Open its Richmond, BC Facility on September 11, 2021
CI
08/24TGS ESPORTS : HyperX & TGS Esports Team Up to Present HyperX Hockey Challenge
AQ
08/16TGS Esports Inc. announced that it has received CAD 0.01695 million in funding
CI
08/16TGS Esports Inc. announced that it has received CAD 0.05695 million in funding
CI
08/12TGS Esports Inc. announced that it expects to receive CAD 0.01695 million in funding
CI
08/05TGS ESPORTS : Reports Record Monthly Revenue of $282,220 in First Month of New Fiscal Year
AQ
08/05TGS Esports Inc. Announces Revenue Results for the Month of July 2021
CI
07/27TGS Esports Inc. announced that it expects to receive CAD 0.05695 million in funding
CI
07/07TGS ESPORTS : Announces First-Of-Its-Kind Collegiate Esports Development Program with $32,..
AQ
More news
Chart TGS ESPORTS INC.
Duration : Period :
TGS Esports Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Managers and Directors
Spiro Khouri Chief Executive Officer & Director
Bryan E. Loree Chief Financial Officer, Secretary & Director
Ravinder S. Mlait Director
Spencer Smyl Director
Chi Yan Li Director