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.
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.
For further information: Scott Secord, President/CEO, (416)-479-3873