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    ESE Entertainment Provides Corporate Update and 2022 Outlook

    1/6/22 8:00:00 AM ET
    $RCI
    Cable & Other Pay Television Services
    Telecommunications
    Get the next $RCI alert in real time by email

    VANCOUVER, British Columbia, Jan. 06, 2022 (GLOBE NEWSWIRE) -- ESE Entertainment Inc. (TSXV:ESE) (OTCQB:ENTEF) (the "Company" or "ESE"), is a Europe based entertainment and technology company focused on gaming, particularly on esports. The Company provides a range of services to leading video game developers, publishers, and brands by providing technology, infrastructure, and fan engagement services internationally.

    To help new and existing investors better understand existing operations and future objectives, ESE Chief Executive Officer, Konrad Wasiela, is pleased to provide the following corporate update.

    Mr. Wasiela stated, "As we start executing our 2022 plans, I would like to take this opportunity to share with you some highlights and successes that ESE has accomplished in 2021. We have established new relationships with global companies, formal working relationships with tier-1 publishers, and surpassed many operational goals. In addition, our aggressive M&A strategy has proven itself, with ESE completing four acquisitions and announcing a fifth. Our team's relentless work ethic, alongside a strategic business plan, yielded a successful 2021. We are now setting our sights on following up the tremendous 2021 with an even stronger year in 2022."

    FINANCIAL PERFORMANCE

    $4,234,984 quarterly revenue with over 400% increase over the prior quarter

    In September 2021, ESE released its financial results for the quarter ended July 31, 2021, highlights of which include the following:

    • Quarterly revenues of $4,234,984, compared to $138,035 in year prior (2020);
    • Total assets of $13,960,781, compared to $842,093 in the year prior (October 31, 2020);

    CEO Konrad Wasiela stated, "It is important to note that the financial statements for this period do not include the recently completed acquisitions of Digital Motorsports and Frenzy. We are working steadily to release our annual audited financial statements for the October 31, 2021 fiscal year. In future periods, we will be able to reflect the combined operations for the full period in our consolidated financial statements."

    ACQUISITIONS

    To date, ESE has completed four acquisitions: K1CK Esports in January 2021, WPG in April 2021, Auto Simulation Limited T/A Digital Motorsports in September 2021, and Frenzy sp. z.o.o. in November 2021. The Company will continue to seek out accretive acquisitions, with a focus on identifying potential opportunities that can add revenue.

    CEO Konrad Wasiela stated, "Last year we executed on our M&A strategy with a total of four acquisitions completed. This has set a new base of operations for the company and put us in a stronger operational position. Throughout our acquisitions processes, our aim has been to structure deals with shareholder value at the top of mind. This focus will not change, and our M&A team intends to continue to pursue synergistic acquisition targets in 2022."

    Acquisitions Completed in 2021:

    K1CK Esports - January 18, 2021

    ESE completed its acquisition of all of the business assets and intellectual property of K1CK Esports Club ("K1CK"), an esports organization based in Europe. K1CK manages esports teams that compete across multiple games and platforms and, since its inception, K1CK has seen continued success in esports competitions across Europe and the rest of the world, winning over 900 awards. The acquisition of K1CK has allowed ESE to expand its position in the esports industry. More than 100 world-class players have played under the K1CK team name, including Ricardo "fox" Pacheco and Carlos "ocelote" Santiago. The current stars of the team include League of Legends player Lukasz "Puki Style" Zygmunciak and FIFA player João "JOliveira10" Oliveira. Website: https://k1ck.com/21/

    World Performance Group - April 12, 2021

    ESE completed its acquisition of World Performance Group Ltd. ("WPG"), an esports gaming and infrastructure company. The completion of the transaction expanded ESE's esports infrastructure services globally, bridging esports companies with their fans and customers. In 2020, WPG's assets generated revenue in excess of $14,000,000. The transaction added WPG's existing client base to ESE. Website: https://www.worldpgl.com/

    Auto Simulation Limited T/A Digital Motorsports - September 15, 2021

    ESE completed its acquisition of Digital Motorsport, a European award-winning organization that is one of the leading sim racing solutions providers in Europe, specializing in building bespoke simulators and offering turnkey simulator packages. Included in the transaction was Digital Motorsports' portfolio of intellectual property related to racing simulator solutions, components, and cloud-based racing services. Additionally, Digital Motorsports is currently developing both products and technology to reduce the complexity and barriers to entry in sim racing. Website: https://digital-motorsports.com/

    Frenzy sp. z.o.o. - November 15, 2021

    ESE completed its acquisition of Frenzy, a media and production infrastructure company focused on the video game industry. Frenzy creates and executes esports and gaming events, broadcasts, and media content. It also operates professional mobile, automated TV equipment, allowing it to produce reality shows from every part of the globe. Its main revenue streams include TV production, events and league organizations, and advertising campaigns. Frenzy was founded by Piotr Zak, a Member of the Supervisory Board of Cyfrowy Polsat S.A., one of the largest digital platforms in Europe and the largest in Central and Eastern Europe. Website: https://www.frenzy.pl/en/

    Acquisition Announced in 2021:

    Definitive Agreement signed to acquire Gaming Technology Company, GameAddik

    On December 1, 2021, ESE announced that it signed a Definitive Agreement to acquire 9327-7358 Quebec Inc. DBA GameAddik ("GameAddik"), a Canadian technology company focused on the video game industry. The company creates and executes its performance model technology software to generate users and increase the reach of games for its customers, which are primarily video game developers. GameAddik has demonstrated consistent revenue growth and profitability based on unaudited historical financials. GameAddik operates in Quebec, Canada, and works with some of the world's most recognized gaming publishers. Completion of the acquisition of GameAddik remains subject to, among other things, TSX Venture Exchange approval.

    SENIOR MANAGEMENT

    Appointment of Rick Brace, former President of Rogers, to the Board of Directors of ESE

    On April 25, 2021, ESE appointed Rick Brace to its Board of Directors. Prior to his appointment, Mr. Brace most recently served as the President of Rogers Media, the sports and media subsidiary of Rogers Communications (NYSE:RCI, TSX:RCI).

    As President of Rogers Media, Rick Brace was responsible for driving strategy and overseeing operations for the company's robust portfolio of media assets, which includes 42 TV stations, 51 radio stations, 56 publications, digital media, subscription-based content services, the Toronto Blue Jays, and Rogers Centre.

    CEO of ESE, Konrad Wasiela, commented, "It is a privilege to appoint Rick Brace as a director of ESE. His willingness to be hands-on and commit to corporate strategy and provide his operational expertise has been priceless. We have just scratched the surface of the value Rick can add to the ESE group."

    Appointment of Hubert Habas, former Senior Team at ESL Gaming GmbH, as Sales Director

    On November 16, 2021, ESE's subsidiary, Frenzy, appointed Hubert Habas as the Company's Sales Director. Hubert Habas has been involved in the gaming industry since 2008. For the last five and half years he cooperated with ESL Gaming. He has an extensive esports brand partnership and sponsorship experience gained during his career with global companies seeking exposure in the gaming industry.

    CEO of ESE, Konrad Wasiela, commented, "Our goal is to continue to seek out the best talent globally and bring them onto the Company. With an already strong team in place, we want to continue to build and invest in world-class talent."

    ESPORTS AND GAMING OPERATIONS – November/December Update

    ESE and Ekstraklasa to Organize EA SPORTS FIFA Tournament

    On November 22, 2021, ESE announced that its media company, Frenzy, had executed a Letter of Intent with Ekstraklasa S.A. for the production of the EA SPORTS FIFA tournament, Ekstraklasa Games, for the 2022 and 2023 seasons.

    Riot Games Selects ESE Entertainment to Launch Esports League in 20 European Countries for the Game VALORANT

    On December 16, 2021, ESE announced that it will organize and produce the first edition of the VALORANT Regional League esports competition in Europe.

    After winning the bid, ESE will now organize and produce the competition for 20 European countries: Israel, Greece, Poland, Czech Republic, Slovakia, Estonia, Latvia, Lithuania, Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Montenegro, North Macedonia, Serbia, Croatia, Hungary, Moldova, Cyprus, and Romania. ESE will be responsible for organizing the esports competitions in the league, administration and operations, producing broadcast feeds and handling social media channels in Polish and English on platforms indicated by Riot Games.

    ESE Announces Digital Motorsports Partnership with NASCAR for eNASCAR International iRacing Series

    On December 20, 2021, ESE announced that its subsidiary, Digital Motorsports, partnered with NASCAR to deliver the second season of the eNASCAR International iRacing Series. The eNascar International iRacing Series is an esports racing competition which will visit five virtual tracks in the United States, Canada, and Belgium, beginning at Homestead-Miami Speedway on Saturday, January 8, 2022. Drivers will compete via iRacing.com, the official simulation partner of NASCAR, which provides one of the top online racing simulation portals and features officially-sanctioned, laser-scanned replicas of race tracks around the world.

    2022 Corporate Goals

    • The Company will evaluate a plan to expand its business offerings to the metaverse, which may be synergistic with its existing assets.
    • The Company will evaluate a plan to expand its business offerings to igaming, which may be synergistic with its existing assets, subject to further business and regulatory due diligence.
    • The Company will continue to evaluate the gaming landscape and look to secure more global-scale contracts with large video game publishers.
    • The Company will aim to implement new technologies and infrastructure which may be utilized in the Company's field of operation.
    • The Company will look to add more senior management and advisors, with a focus on operational expertise.
    • The Company will actively pursue new acquisitions with a key focus on shareholder value.
    • The Company will look to improve financial performance and increase margins.
    • The Company plans to continue to expand its physical presence globally.
    • Implementing a growth business plan with a strong focus on integration of acquisitions in order to maximize value and extract synergies.

    CEO, Konrad Wasiela concludes: "I want to personally thank all the shareholders that have believed in ESE and our Company vision. We are focused on executing our plan and believe in building long term shareholder value. We are energized and more driven than ever to continue to deliver value and grow the Company. Our whole team has hit the ground running in 2022, and we look forward to an exciting year ahead."

    About ESE Entertainment Inc.

    ESE is a Europe based entertainment and technology company focused on gaming, particularly on esports. The Company provides a range of services to leading video game developers, publishers, and brands by providing technology, infrastructure, and fan engagement services internationally. ESE also operates its own ecommerce channels, esports teams, and gaming leagues. In addition to the Company's organic growth opportunities, the Company is considering selective acquisitions that align with its objective of becoming a dominant global player in esports technology and infrastructure. | www.esegaming.com

    Forward-Looking Statements

    This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that ESE anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to: (i) the Company's future revenues, and its ability to maintain revenue growth; (ii) the success of the Company's past and future acquisitions; (iii) the ability of the Company to identify M&A targets, and its ability to execute on the same; (iv) the likelihood of completing the acquisition of GameAddik; (v) the Company's ability to identify and appoint suitable members of senior management, advisors, and other personnel; (vi) the Company's ability to execute on its corporate goals for 2022, including the expansion of its business into the metaverse and igaming; and (vii) the Company's ability to identify and adopt new technologies and infrastructure. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of ESE to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to ESE, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of ESE should be considered highly speculative.

    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.

    SOURCE ESE Entertainment Inc.

    For further information about ESE, please contact:

    Daniel Mogil, Investor Relations

    [email protected]        

    647-492-1535



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