New Wave Esports Release Company Update Detailing Plans of Growth

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Midas Letter

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Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

New Wave Esports Corp (CNSX:NWES) CEO Dan Mitre joins Midas Letter announced a binding LOI to fully-acquire Activate Entertainment. Active Entertainment specializes in putting on esports events and offering full 360 turnkey solutions for professional, high-quality livestreams. Active Entertainment are active in Los Angeles, CA and Las Vegas, NV; two cities which are starting to turn into esports hubs in the US. Mr Mitre also talks about the company’s investment into Avatar One E-sports and Real Time Gaming Holdings whom own and operate a wage betting platform called Luckbox. Watch the full interview to hear about more New Wave acquisition news and developments in the Esports/Gaming community.

Transcript

James West: Dan, you’ve made a couple of very interesting and very promising announcements, especially this one about your acquisition. You announced an LOI to acquire Activate Entertainment; tell us about that.

Dan Mitre: Yeah. This is a really exciting moment for not only New Wave, but also all the team at Activate Entertainment. Let me give you a little overview, here. So, we just entered a binding LOI to fully acquire them. They are a creative management and a production services company that specializes in esports events and activations, and they have operations set within Los Angeles and Las Vegas, and those two cities are really starting to turn into e-sports hubs here within the southwest region of the US.

So having them come onboard is a big strategic move for the New Wave portfolio. There’s a lot of great collaborations present here, but also being able to bring in the capital and advisory services to help them drive and fuel and build a bigger business is really what’s going to take Activate to the next level.

So Activate is a full 360 turnkey solution for professionals, and within the gaming industry they do high quality live streams, and they also set up incredible events. So they were just at CES: they were working with the Panasonic guys and brought the Panasonic booth to life. They’ve worked at other big gaming and technology conferences to really make incredible booths and experiences for professionals and onsite consumers to enjoy some of the biggest brands there out, so they’re at, like, E3, they’re at Comicon. 

They can do this because they have a team of very specialized and technical directors, producers, content managers, all with experience in TV and online production. So we’re talking really high quality events, high quality productions, and they’ve got the latest equipment to do it, too. So we’re talking, like, some of the most incredible cameras and lighting, really dials up what the e-sports industry would expect.

So we’re really excited, here, and another thing to add here is, they’re not only involved with e-sports and gaming, they’re actually involved in traditional casino gambling, especially with there being a hotbed in Vegas. So they provide consultation services to companies like Caesar’s Entertainment and Marriott, and learn how to incorporate gaming into their programming.

So some of these hotel chains and some, you know, like resort properties, understand that audiences are younger and we need to attract audiences with great entertainment, and that’s around gaming and e-sports. So they bring great livestream production to the market. They bring tournament operation, custom activation around custom content as well, and they also provide great IT and infrastructure support.

So with that in mind, and some of their partnerships that include, like, Alienware, CyberPowerPC and, like I said, Caesar’s Entertainment and Sony, this opens up a very big strategic value for New Wave; our current portfolio, being able to enter, weave various collaborative opportunities, but also expand Activate’s proficiencies in areas across the globe now that they’re coming online as a New Wave portfolio team and we bring in the firepower to help them grow. Really excited about it. 

James West: Sure. Dan, I want to ask you: is there a potential that there becomes a wagering online gambling component to the esports universe at some point?

Dan Mitre: Well, there is, currently. There’s several companies out there that do that, so actually, it’s funny that you mention that – we just released a New Wave company update this week talking about one of the companies that we indirectly invested in. So, we invested into a shell called Avatar One E-sports, which is a shell put together by some of the biggest names in Canada. And one of the companies that took that was Real Time Gaming Holdings, and they own and operate a platform called Luckbox. Luckbox is that wage betting platform.

There’s several – 

James West: We’ve had them here on the show.

Dan Mitre: Oh, we’ve had them here on the show?

James West: Yeah, we had them here on the show a couple of months ago. I’m invested in Avatar One, as well.

Dan Mitre: Oh, dude, okay. Well, see, so, like, Quentin and the rest of his team are really doing things quite well. It really comes down to the management team and their ability to bring this to life, and start seeing where the new opportunities lie. They have some great pedigree behind them from names such as, like Poker Stars and Sony. So they’ve got the right people in place to expand their product. 

And so just by talking with them, they just recently got nominated for Esports Operator of the Year, which is massive; that’s definitely a good feather to have in the cap. They’ve got some Q4 2019 achievements such as bringing team statistic widgets into the platform, adding four new payment providers, and then here in 2020 they expand with a lot of that capital coming in by traditional languages to the platform, so, opening up to wider audiences.

There’s new user acquisition partnerships, as well as some new advanced bonusing tools. So they’re really optimizing the platform to make it easy for people to engage in gaming and esports, potentially win some pretty good coin on the back end of it. So, really happy with what Luckbox has been doing.

James West: Yeah, you bet. Interesting. Okay, so you also talked a bit in your update about EMG, and I’m curious to understand the significance of all of that. It seems like there’s a bigger story evolving here every time you put out an update.

Dan Mitre: Yeah, so EMG is certainly something that you and I have talked about quite a bit. We entered a definitive agreement to fully acquire them; on a previous episode, we detailed out why that’s beneficial for us, and why it’s beneficial for EMG. But so, for those who are just catching this episode for the first time and hearing about it, they’re an events company that brings e-sports to the masses through over 80 annual events: monthly, weekly, and majors. So, two big majors right now – Get On My Level, and Let’s Make Big Moves.

With our full acquisition coming in, us bringing in that firepower of additional capital, additional services, whether it’s with production lists and marketing, we’re looking to expand their operations wider through North America. So we’re talking about majors in key cities throughout the US and Canada, where there’s big esports and vibrant communities that are willing to jump into the fight and game community.

So we want to bring additional experiences to multiple cities that support Super Smash Brothers tournaments, Dragonball Fighter Z, Tech&7s (phon), Streetfighter 5, Guilty Gear…these are going to be massive games for us, building great partnerships with the publishers and developers who create these games, and then expand us out to the e-sports industry. We want to grow the FGC, or the Fighting Game Community, and what better way to do that than with a team that is so closely connected to the community, and has such goodwill with them?

So you know, here in 2020, you’ll see some pretty big, expansive moves for EMG, especially as we head into Get On My Level 2020, which is actually going to be hosted in Toronto right there in your backyard May 15th and 17th. So we’d love to meet everybody who comes out and participates in the smash scene, there.

James West: Yeah. Well, we should definitely make plans to cover that from a media perspective. Yeah, okay, so then, what are your biggest sort of expectations for 2020 in terms of the context of, you’ve got this portfolio of investments which clearly they’re threatening to become at least as big as New Wave E-Sports itself; you’ve got these tournaments coming up; you’ve got your acquisitions ongoing, whole acquisitions. Where’s the big payout coming for investors? Like, it’s kind of like, I don’t know what to keep my eye on, here.

Dan Mitre: Look for companies that are growing with sustainability in mind. I mean, obviously I’m biased when I talk about New Wave, and we’re very much trying to shepherd a strong portfolio that has investments and/or acquisitions in all the verticals that we pay attention to, and that’s the teams, the events, the platforms, the tech and tools.

So look for companies that very much have sustainability in mind. Obviously, that’s something that every company is looking for, but not – you know, all of the, I want to say that the bottom line revenues and the profitability match the top line revenues all the time. Like, teams are very unstable in that regard. So, if you’re going to be looking at teams, look at teams that build out other revenue streams and aren’t just reliant on prize winnings. 

Same with events. You know, if you’re looking at event operators, not just those who are producing events in esports, but are they actually tapping into the wider, bigger industry of gaming? So, there’s a lot of resiliency that you’re looking at. So New Wave E-Sports is certainly one of those solutions, as we have built a portfolio of minority stakes investments. But as we go forward in 2020, you’re going to see bigger acquisitions. We have several acquisitions that we’re looking at now that really fill out our whole portfolio. 

And so as long as we have positions in each one of those verticals, or acquisitions in each one of those verticals, we can start building in the business collaborations there, the revenue streams in which they share, building out bigger sponsorships and partnerships opportunities. So, when a big non-endemic brand, say, like Coca-Cola, comes around and looks at the New Wave portfolio, they see a massive audience potential here, and the fact that there’s a premium brand attached to e-sports that they can jump on that brings them goodwill and positions their brands better.

So you’re looking at it as a holistic ecosystem.

James West: All right, Dan, fantastic update as per usual. Exciting things happening. Thanks for joining us again this week. We’ll see you next week.

Dan Mitre: Thanks, James. We’ll talk soon.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.