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Tag: GMBL

  • Esports Entertainment Group, Inc. (GMBL) declined in the after-hours; here is why?

    Esports Entertainment Group, Inc. (GMBL) declined in the after-hours; here is why?

    Esports Entertainment Group, Inc. (GMBL) declined in the aftermarket after announcing its price for the previously announced underwritten public offering. GMBL values at $0.94, losing more than 18% compared to Friday’s closing price. The stock closed at $1.16 at the end of the last trading session. The stock volume traded in the last trading session was around 1.06 million shares. The current market cap of the company is around $29.78 million.

    GMBL underwritten public offering

    On February 27, 2022, Esports Entertainment Group, Inc. (GMBL) priced its previously announced underwritten public offering of 15,000,000 shares of common stock.

    GMBL has decided on an effective offering price of $1.00 for each share of common stock and each common warrant. The useful life of the common stock and warrants will be five years from the date of issue and will be exercised for $1.00 per share of common stock. Investors will buy both the common shares and warrants simultaneously, but they will be issued separately and will be instantly transferable.

    GMBL further announcement

    A 45-day option to acquire an additional 2,250,000 common shares and will have a choice to further buy warrants up to an extra 2,250,000 common shares that GMBL has granted. For the offering, Maxim Group LLC and Joseph Gunnar & Co., LLC are serving as book-running managers, respectively.

    GMBL intends to fund working capital

    Before excluding underwriting discounts and commissions and projected offering costs, they expect that the total income of the offering will be about $15.0 million in total. They anticipate that this offering will close in the first week of March. GMBL intends to utilize the total proceeds from this offering as working capital and to repay a part of its existing senior convertible note.

    Conclusion

    As soon as the company announced its underwritten public offering price, its stock plunged after-hours. Investors are not responding positively to the pricing offer.

  • Esports Entertainment Group Inc (GMBL) stock lost 31.31% in the after-market. Here’s why

    Esports Entertainment Group Inc (GMBL) stock lost 31.31% in the after-market. Here’s why

    The stock of Esports Entertainment Group Inc (GMBL) closed the recent trading session at $2.97. The stock lost 8.62% from the previous trading session. During the last check, the stock of GMBL nosedived in the after-market, losing 31.31% to $2.04. Esports Entertainment announced the financial results for the second quarter of 2022. The company also filed forms 10-Q and 8-K with the SEC on February 22, 2022. These forms refer to the report of the quarterly earnings.

    Esports Entertainment Group Inc is an e-sports and online gambling platform. The company operates by the development of video gaming and the ascendance of esports. The esports games of the company include Dota 2, Fortnite, Counter-Strike, and more. As of now, the market capitalization of GMBL is $66.50 million, with 22.39 million outstanding shares.

    GMBL Quarterly Outlook:

    On February 22, 2022, GMBL announced the financial results of the second quarter of the fiscal year 2022, which ended on December 31, 2021. According to the results, the revenue of GMBL increased by 515%. The company posted revenue of $14.5 million in Q2 of FY22, an increase of $12.1 million from the year-ago quarter. The net loss was $34.3 million in the second quarter of FY22 versus $7.2 million in the same quarter of the previous year. Net loss of the company increased by 370%. The company had a loss per share of $1.53 in Q2 of FY22 as compared to $0.57 in Q2 of the fiscal year 2021. Moreover, the total loss to the adjusted EBITDA in Q2 of the financial year 2022 was $6.7 million versus $3.8 million in Q2 of the financial year 2021.

    GMBL effectively finished the relocation of its SportNation.com and Vie. bet iGaming destinations to its restrictive Idefix platform. An announcement was also made about the renewal of the partnership with the NBA 2K league in January 2022. OMEGA platform was also released by the company. OMEGA enables the businesses like the offering of esports by movie theaters, shopping malls, and family centers.

    Management Remarks:

    The CEO of GMBL, Grant Johnson, said that the results of the second quarter depict various challenges for them. He further said that they remain bullish about reaching the annual revenue of $100 million in the preceding year.

    Moreover, Mr. Johnson said that they believe their future is bright with the new products and the strength of their European-based iGaming and online sports betting platform.

  • New Jersey Betting Operations Update: Esports Entertainment Group Inc. (GMBL) Advances Premarket

    On January 24, Esports Entertainment Group Inc. (GMBL) announced receiving approval for commencing betting operations in New Jersey. Consequently, the stock advanced by a further 6.23% at the last in the premarket, on Tuesday.

    In the previous trading session, GMBL remained bullish with a gain of 6.64% at its close of $2.73. Following the announcement, the stock was trading at $2.90 per share in the premarket, at the time of writing.

    The online gaming platform, Esports Entertainment Group Inc. was founded in 2008. Currently, the company has a market capitalization of $57.32 million with 22.39 million shares outstanding. Furthermore, GMBL currently stands at a year-to-date loss of 22.22%, while it lost 67.84% last year.

    New Jersey Betting Operations Approval

    According to the announcement, an Order approving Transactional Waiver from the Director of the New Jersey Division of Gaming Enforcement was granted to the company. Pursuant to the Order, the company can now commence betting operations in the state. Hence, GMBL has become the first esport operator to receive New Jersey Transactional Waiver.

    After a five-day ‘soft play’ period, the company intends to launch its VIE.gg betting platform. Moreover, the ‘soft play’ period is expected to begin on Tuesday afternoon, which will uphold some limitations for proper regulatory operations.

    GMBL’s Preferred Stock Dividend

    On January 5, the company announced the declaration of monthly dividend for its 10.0% Series A Cumulative Redeemable Convertible Preferred Stock. Therefore, GMBL’s board has approved a monthly dividend of $0.08 per Series A Preferred stock share for January, February, and March 2022. Additionally, the 15th of each of the three months will be the record date for each dividend with the 31st of each month being the payment date.

    Partnership Renewal

    In addition, the company also announced its partnership renewal on January 05, 2022. The company and its EEG Labs brand have renewed their partnership with Take-Two’s NBA 2K League. Currently, the company is working on the season’s Combine and Draft.

    GMBL’s Fiscal Q1 2022

    On November 15, the company reported its financial results for the first quarter of fiscal 2022, which ended on September 30, 2021.

    In Q1 FY2022, the company had net revenue of $16.4 million. Thus, showing an increase of $16.2 million from the year-ago period.

    Additionally, GMBL incurred a GAAP net loss of $0.5 million in Q1 FY2022, against $1.8 million in the same period of fiscal 2021. Resultantly, the net loss per share was $0.03 and $0.15 in Q1 of fiscal 2022 and 2021, respectively.