TORONTO, Nov. 29, 2017 /CNW/ - Gaming Nation Inc.
(TSXV-FAN) ("Gaming Nation" or the "Company") announced today its
financial and operational results for the third quarter ending
September 30, 2017. Consolidated
financial statements and Management Discussion & Analysis for
the quarter can be found on SEDAR (www.sedar.com). All amounts are
reported in Canadian dollars unless otherwise noted.
"The third quarter resulted in significant growth in our
business as revenues increased by 88% compared to the same period
in 2016," said Scott Secord, Gaming
Nation's President and Chief Executive Officer. "The Company
is pleased with the integration and results of the recently
acquired BD Sport Group and the acquisition of Artemis Tech's 50/50
raffle customers. We are also pleased to have announced on
November 28, 2017, the completion of
the previously announced plan of arrangement whereby OC Special
Opportunities Fund, LP, a private investment fund managed by Orange
Capital Ventures GP, LLC has acquired all outstanding shares of
Gaming Nation."
Third Quarter Segment Highlights and Recent
Developments
- 5050 Central - During Q3 of 2017, 5050 Central secured
long-term partnerships with 47 new customers, bringing the total
number of new customers signed in FY17 to 106. Additionally, 5050
Central renewed 23 customer accounts during the quarter. Agreements
(both new and renewals) executed during Q3 represented over
$1 million in annual recurring
software revenue for the business.
- BD Sport - During Q3, BD Sport secured new agreements
with multiple new customers including Huddersfield FC, Burnley FC,
Queens Park Rangers FC, National Stadium Wembley (including all
England, FA Cup, English Football
League and Tottenham Hotspur F.C. games). Additionally, new brand
relationships have been secured with both William Hill and SportPesa to utilize in-stadia
services at club events.
- Sports Information Portals - In Q3 2017, the Fantasy
Guru business line continues to exceed forecasts with revenues
totaling $590,000 in Q3. Both the
seasonal and daily fantasy site properties hit record highs in
annual paid subscribers, reaching 33,000 and 15,500 respectively.
Guru Elite, Fantasy Guru's daily fantasy sports site property has
entered into its second season of providing football advice and saw
sales increase 386% year over year.
The third quarter 2017 operating results ending September 30, 2017 of Gaming Nation Inc. include
operations from the following reportable segments: electronic 50/50
raffle platform through 5050 Central Ltd. and 5050 Central Delaware
Inc. (collectively "5050 Central"); sports intelligence information
through Guru Fantasy Reports, Inc. ("Fantasy Guru & Guru
Elite") and Stevo Design, Inc. ("Pick Nation"); and in-stadium
betting and sponsorship through BD Sport Ltd. and BD Stadia Ltd.
(collectively "BD Sport")
Q3 2017 Financial
Summary
- Consolidated revenue was $5.5
Million for the third quarter ending September 30, 2017
- Revenue increased by 88% in Q3 2017 vs Q3 2016
- Adjusted EBITDA was $1.1 Million
for the third quarter ending September 30,
2017
- Net loss from continuing operations was $1.1 Million for the third quarter ending
September 30, 2017
Financial Position as of September 30,
2017
- Cash of $1.9 Million
- Total assets of $69.5
Million
- Total liabilities of $20.9
Million
- Total equity of $48.5
Million
Plan of Arrangement Closed November
28, 2017
On June 26, 2017, the Company
entered into an arrangement with OC Special Opportunities Fund, LP,
a private investment fund, managed by Orange Capital Ventures GP,
LLC (collectively, "Orange Capital'). Under the Arrangement
Agreement, Orange Capital would acquire all of the issued and
outstanding shares, and all outstanding options and warrants of
Gaming Nation.
On November 28th,
Gaming Nation announced the completion of the previously announced
plan of arrangement whereby OC Special Opportunities Fund, LP, a
private investment fund managed by Orange Capital Ventures GP, LLC,
acquired all of the issued and outstanding shares of Gaming Nation
for consideration equal to $0.95 per
share and have acquired all outstanding options and warrants of
Gaming Nation from the holders for the excess value of the exercise
price up to $0.95 per option or
warrant.
Gaming Nation has applied to de-list the common shares from the
TSX Venture Exchange.
About Gaming Nation Inc.
Gaming Nation Inc. (TSXV-FAN) provides technology and
information platforms to the sports and entertainment
industry. The Company's platforms include 5050 Central, an
electronic real-time raffle system, BD Sport Group, providing
in-stadium betting in the UK football market, and sports
information websites Fantasy Guru, Fantasy Guru Elite and Pick
Nation.
For more information, visit www.gamingnationinc.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Reader Advisory
Certain information set forth in this news release contains
forward-looking statements or information ("forward-looking
statements"). By their nature, forward-looking statements are
subject to numerous risks and uncertainties, some of which are
beyond Gaming Nation Inc.'s control, including the impact of
general economic conditions, industry conditions, currency
fluctuations, operational risks, competition from other industry
participants, stock market volatility, and the ability to access
sufficient capital from internal and external sources. Although
Gaming Nation Inc. believes that the expectations in its
forward-looking statements are reasonable, its forward-looking
statements have been based on factors and assumptions concerning
future events which may prove to be inaccurate. Those factors and
assumptions are based upon currently available information. Such
statements are subject to known and unknown risks, uncertainties
and other factors that could influence actual results or events and
cause actual results or events to differ materially from those
stated, anticipated or implied in the forward-looking statements.
Accordingly, readers are cautioned not to place undue reliance on
the forward-looking statements, as no assurance can be provided as
to future results, levels of activity or achievements. Risks,
uncertainties, material assumptions and other factors that could
affect actual results are discussed in our public disclosure
documents available at www.sedar.com. Furthermore, the
forward-looking statements contained in this document are made as
of the date of this document and, except as required by applicable
law, Gaming Nation Inc. does not undertake any obligation to
publicly update or to revise any of the included forward-looking
statements, whether as a result of new information, future events
or otherwise. The forward-looking statements contained in this
document are expressly qualified by this cautionary statement.
SOURCE Gaming Nation Inc.