NEW WAVE ESPORTS MARCH 2020 I NEWWAVEESPORTS.COM
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Disclaimer The information contained in this presentation has been prepared by NEW WAVE ESPORTS CORP. (“NWE”) is confidential and proprietary to NWE. The information contained in this presentation (a) is provided as at the date hereof unless otherwise indicated, (b) does not purport to contain all of the information that may be necessary or desirable to fully and accurately evaluate NWE, and (c) is not to be considered as a recommendation by NWE that any person make an investment in NWE. This presentation is being provided to you solely for your information and may not be reproduced, in whole or in part, in any form or forwarded or further distributed to any other person. By reviewing this presentation, you acknowledge and agree (i) to maintain the confidentiality of this presentation, the information contained herein and all other information received, (ii) to protect such information in the same manner you protect your own confidential information, which shall be at least a reasonable standard of care, and (iii) to not utilize any of the information contained herein or otherwise received. You will be liable for any damages caused by or resulting from any unauthorized disclosure or use or reliance of the information contained herein. FORWARD-LOOKING INFORMATION This presentation also 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 NWE anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. In some cases, forward-looking information is identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and similar terms and phrases, including references to assumptions. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations or future results including as to NWE’s investment and other activities, and as to the esports industry potential. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans as of the date of this presentation but are subject to known and unknown risks, uncertainties and other factors that (including risks and uncertainties relating to business and investee performance, financing, and a variety of other risks, which are set out in great detail in NWE’s CSE Form 2A Listing Statement dated October 24, 2019 and available on SEDAR) may cause actual results, performance or achievements or industry results to be materially different from those expressed or implied by such forward-looking information. Such factors are based on information currently available to NWE, including information obtained from third-party industry analysts and other third-party sources, and are based on management’s current expectations regarding future growth, transactions, future capital (including the amount, nature and sources of funding thereof) and expenditures. The forward-looking information contained in this presentation is expressly qualified by this cautionary statement. Because of the risks, uncertainties and assumptions contained herein, do not read forward-looking information as guarantees of future performance or results and do not place undue reliance on forward-looking information. NWE does not intend to provide updates on any of the forward-looking information herein except as may be required by applicable securities laws. Nothing in this presentation is, or should be relied upon as, a promise or representation as to the future. There is no warranty or guarantee given by any person as to any forecast or financial outlook contained herein. Information herein relating to NWE’s investees has been provided to NWE by such parties and has not been verified.
INTRODUCTION New wave esports We are an esports organization focused on acquiring esports companies, developing business, and optimizing revenue streams for sustained profitability. We provide capital and advisory services to esports teams and organizations, events and tournament organizers, platforms and networks, and technologies and tools. We are publicly traded on the Canadian Securities Exchange (CSE:NWES).
OUR VALUE PROPOSITION
ENTERTAINMENT PUBLISHERS
We capitalize on esports EA, Activision, Riot, Blizzard, and others
entertainment and lifestyles. rely on esports for new rev streams and retention.
DEVELOPERS experiences
Respawn, DICE, Bioware, and others We provide entertainment and experiences by
need active player bases. collaborating with publishers, developers, and gamers.
Super smash bros. Esports Broadcasting
Tournament operator & productions EXPECTED
B2c B2b PROFITABILITY
$350k Revenue in 2019 $514k Revenue in 2019 mid-year 2022
$700k est. Revenue in 2020 $1.78M est. Revenue in 2020
25-40% Profit Margins 22-26% Profit Margins
80+ Events / Year 20+ White-Label Clients / Year
7.5k+ Attendees / Year Events Typically Cost $100k’s
32.3M+ Views on Twitch & YT In-House production reduces
costs for clientsOur audience
B2c Esports gamers & viewers
target Fighting game communities who play and watch
Smash Bros, Tekken 7, Street Fighter 5, DragonBall
FighterZ, and more.
B2b Esports & non-endemic
target Companies increasing their esports program revenues
and organizations looking to start new rev streams.
Consumer & clientele funnel
reach In B2C, we are direct-to-consumer: digital comms,
influencer marketing, gaming PR, partner promotions,
and venue and vendor sales.
In B2B business, we are direct-to-client: digital comms,
RFP, direct proposals, word-of-mouth, and onsite leads.
Distro Onsite & online
Channels Bulk of business done onsite with live activations as we
extend programming to livestream and VOD for
amplification, exposure, and additional monetization.ECONOMIC MODELS
Esports tournaments Broadcasting & production
toronto, ny, la, chicago La, vegas
MONETIZATION MONETIZATION
• $25-$100 ticket / attendee • $50k-$500k accounts
• Addt. revenue from onsite • Addt. revenue from online
experiential and vendors broadcasting
CONSUMERS CLIENTELE
• Repeat attendees on weekly, • Repeat clientele on a yearly
monthly, and quarterly basis basis
COST STRUCTURE COST STRUCTURE
• Corporate and Event-Based • Corporate and Production-
Costs Based Costs
• Fixed Costs: Management, • Fixed Costs: Management,
Office, and General Office, and General
• Variable Costs: Cost of Sales, • Variable Costs: Contractors,
Advertising, Professional Fees Production, Venues
PROFITABILITY PROFITABILITY
• Est. Q3/2020 • Currently Profitable
• Currently Break-Even • Increased Profitability
• Profitability dependent on dependent on scaling opex to
major event expansion production demandScalable ecosystems
LOW-COST PRODUCTIONS
• Venue costs are consistent and relationship-based.
• Onsite equipment is rented to keep depreciation low.
• Online broadcasting has minor cost with large gains.
COMMUNITY RECEPTION
• Passionate and dedicated fighting game communities in key cities.
• Repeat consumers who latch on to lifestyle and competitive nature.
IP PARTNERSHIP
• One of the few TO’s partnered with Nintendo.
• Approvals on Nintendo IP usage easy to obtain.
HIGH-QUALITY EXPERIENCES
• Venue costs are fairly consistent year-over-year.
• Fixed production costs fronted by client.
• Discounts on costs incentives for maximum profitability.
ESTABLISHED BRANDS
• Clientele consists of long-established brands including Intel, Dell,
Alienware, Caesar’s Entertainment, Marriott, and more.
IP PARTNERSHIPs
• Working alongside world-renowned brands sets pedigree.
• Coming in under costs with max output positions Activate as repeat
production partners.COMPETITION & ADVANTAGE
Competition Competition Competition
• Esports VC’s and Funds • FGC TO’s • Experiential agencies
• Esports organizations • FGC Online Platforms • Gaming event production
acquiring entities for profit teams
Advantages Advantages Advantages
• Publicly-traded • Official Nintendo partnership • Esports broadcasting
• Shares liquidity • Consistent sponsorship flows expertise
• Access to capital • Experienced operator of 6 yrs • Low-cost production solutions
• Ancillary services and support • Access to high-quality
• Gaming and esports network equipment
sustainability sustainability sustainability
• Strong profitability strategy • Low-cost productions • Stronghold on current
• Aggressive expansion efforts • Repeat customers accounts
• Global audiences • Profitable expansion plans • Local govt. agency supportOur team
Daniel MITRE Trumbull Fisher STAN LEVITT
CEO & Managing Partner President & Managing Partner CFO & Corporate Secretary
18+ years experience in video 15+ years experience in capital 20+ years of experience as an
game marketing, developer and markets and has contributed to active contributor in the
player communications, and some of the largest financial accounting, finance, compliance,
building large-scale communities institutions in Canada. regulatory and governance space.
for AAA franchises.
Our board
CLAYTON FISHER CHRIS MANCIL BYRon COULTHARD
10+ years of experience as 19+ years video game industry expert Chairman of the Board of BRS Resources
an Investment Advisor in the specializing in community LTD.
financial services industry. management and influencer relations.
TRUMBULL Fisher Richard carl
President of New Wave Esports Extensive experience in serving as a board
member and in executive roles for private
and public companies in a number of
industries.FUNDING & MILESTONES
CAPITAL NEEDS
$1,050,000 USD
FY21
USE OF PROCEEDS
NWES Corporate Operations
EMG Opex & Expansion
Activate Acquisition & Opex
KEY MILESTONES
Q2/20
EMG Major Event in Toronto
Activate Acquisition Close
Q3/20
EMG Chicago Major
Activate Summer Productions
Q4/20
EMG Los Angeles Major
Activate Holiday Productions
KEY METRICS
Top-Line Revenue
Audience Reach
Market PerformanceCONTACT US CONTACT@NEWWAVEESPORTS.COM MARCH 2020 | NEWWAVEESPORTS.COM
APPENDIX
ACQUISITION FOCUS
TERMS REVENUES GROWTH
Share Exchange Top-Line Revenues Optimizing Businesses
Injected Cash Component Profitability Generating New Revenues
Operation Expenses Quarterly Performance Portfolio Performance
Advisory Services Public Disclosure Industry PlayerHOW WE VALUE OUR PORTFOLIO
ACQUISITIONS HOLDINGS
Top-Line Revenues Valuation at Investment
Profit Margins Current Valuation
Revenue Projections Revenue Multipliers
Product Development Industry Comparables
Team CapabilitiesOBJECTIVES
$1.9b industry INVESTMENT IS HOT
Build a profitable portfolio in esports We are building the esports ecosystem alongside
with mobilization power major esports and gaming companies and brands
PROFITABILITY ADVISORy services
Pave way to a profitable industry Provide guidance for early and mature
rooted in sustainability companies in the esports and gaming industriesINVESTMENT VertIcals 1. TEAMS & ORGANIZATIONS 2. EVENTS & tournament organizers 3. PLATFORMS & NETWORKS 4. TeCHNOLOGIES & Tools
Teams & organizations
HOLDINGS INVESTMENT
TIIDAL GAMING
Investment to support their growth in esports and
entertainment.
Lazarus
They own and operate one of Canada's premier esports teams,
Lazarus, which is comprised of 50+ professional players and 12
professional teams across 10 countries.
Won $3.5M in fortnite world cup
Placed 2nd in Duos and 4th in Singles in 2019 tournament.
GLOBAL RECOGNITION
60+ podium finishes and 32+ tournament wins.
Actively Competing
Competes in 12 games including Fortnite, PUBG, Counter-Strike:
Global Offensive, Madden, NHL, and more.
*$400k CAD Investment closed in March 2019Teams & organizations
HOLDINGS INVESTMENT
TALON ESPORTS
Professional esports organization with a growing presence across Asia
including Hong Kong, South Korea, Taiwan and Thailand.
MULTIPLE TEAMS
Participating in a number of triple A gaming titles including Overwatch, Tekken
7, Street Fighter V, Arena of Valor, Rainbow 6 Siege and Clash Royale.
BREEDING CHAMPIONS
Overwatch (3x Pacific Champions), Street Fighter V (PPL Masters
Champion, Red Bull Kumite Last Chance Qualifier), and Tekken 7 (Thaiger
Uppercut, Fighting Games Challenge, DOUBLE K.O. #4, Atlanta Battle
Opera).
MAJOR SPONSORS
Securing sponsorships with partners such as Logitech, H Cubed
Investments, Noble Chairs and Twitch with more to come heading
into 2020.
HIGH-QUALITY CONTENT
Operators of a creative studio based in Hong Kong to support both
endemic and non-endemic clients with brand activation and digital
marketing campaigns in the esports space.
*$400k CAD Investment closed in December 2019Events & tournament organizers
ACQUISITION
EVEN MATCHUP GAMING
Esports events production and broadcast company based in Toronto,
Ontario, Canada. Entered into a definitive share purchase agreement to
acquire all of the issued and outstanding shares of EMG not currently held
by NWE, who currently holds an 18% stake.
HYPER-ENGAGED AUDIENCE
With 80+ events per year, their audience continues to grow with 7,400+
attendees, 84.5k+ Twitch followers, and 32.3M+ video views on Twitch and
YouTube.
Scaling & Growing
The company's tournament operator model is integral to the esports
industry ecosystem as it is scalable and rapidly growing.
Fighting Games
Their focus on fighting games uniquely positions the company in an
important emerging sector of esports.
Get On My Level & LET’S MAKE MOVES
GOML 2019 saw 2.1K+ players,1M unique Twitch viewers. Let’s
Make Moves 2019 projecting 1K players, 2.4M Twitch impressions.
*$250k CAD Investment closed in March 2019; Entered into definitive agreement for full acquisition in December 2019Platforms & networks
Holdings INVESTMENT
PLAYLINE
Supporting business growth, audience expansion, platform
optimization, and objective of making fantasy sports accessible
to traditional sports and esports fans.
Daily Fantasy Esports
Platform is intuitive for new and existing fantasy sports players.
Ability to connect large audiences to the growing sector
establishes them as an industry leader.
Co-Founder & talent
Co-founded by UFC Middleweight Champion Michael
Bisping, and has secured NBA All-Star Roy Hibbert as their
Investor/Strategic Partnerships manager.
Significant growth
270k~ users currently on their platform with continuous increasing
Average Revenue per User and Lifetime Value per User.
Key Partnerships
Generated $2.75M in Gross Game Play, and 7.8K user
increase in 24hr period with NFL & NBA partnerships, and
partnered with NASCAR for full on-site race activations.
Projecting $10M in Gross Game Play for 2019.
*$250k CAD Investment closed in March 2019Platforms & networks
HOLDINGS INVESTMENT
AVATAR ONE ESPORTS CAPITAL
CORP
Esports acquisition vehicle created by a group of Canada's top
investors.
Capital Raise
Team raised $1M+.
Via avatar one esports capital corp
Target Vertical
Luckbox, an esports betting platform, received shell funding.
*$150K CAD Investment closed in August 2019TECHNOLOGIES & TOOLS
ACQUISITION
THUNDERBOLT CDG
Fully acquired a software applications and technology
development company that has provided services for 40+
startup companies.
TOOLS & SOLUTIONS
Conceptualizing tools and solutions in the near future to meet
the growing needs of the esports industry.
Technology development
Expands New Wave Esports' offerings and capabilities in technology
and tools development.
Innovation
An esports and competitive gaming venture with a focus on
innovating and growing the esports industry.
*Acquisition finalized in January 2019Company Growth
Public Listing Acquisition
Definitive Portfolio
Avatar One Esports Agreement Growth &
Capital Corp. Expansion
Acquisition Investment
Investments
NWE Asia
Established Investment Fully Acquired
NWE
Founded
Capital Raise Capital Raise
2019
Aug
May
2020
Nov
Mar
Feb
Jan
Oct
Dec
FebPRESS COVERAGE
100
PIECES OF PRESS
203M 1.06M 1.64K
Online readership est. coverage views Social shares
COVERAGE
13 50
Average domain
Links from COVERAGE authorityCAPITALIZATION STRUCTURE
OTHER CONVERTIBLE
TOTAL SHARES TOTAL WARRANTS SECURITIES
77,692,033 59,824,864 14,866,666
7,466,666
OPTIONS
7,400,000
RSU’S*
*Effective at RTO closing on October 24, 2019
*RSU’s vest over 1 year
*Insiders own 10%WARRANTS FROM PRIVATE PLACEMENTS
STRIKE QUANTITY
$.18 21,737,866
$.20 22,723,000
$.30 12,282,666
56,743,532Q2 2019 financial statement
Comprehensive
Profit from operations
$69,424
Unrealized gains
$658,425ADVISORS
Neil Duffy MANNY ANEKAL LANCE MUDD
Chief Commercial Officer of 15+ years of experience within Gaming Founding member and Sport Director of
WorldGaming.com and Esports with executive roles at USEF. As Sport Director and Executive Board
Director of Tiidal Gaming Microsoft, Electronic Arts, Zynga, Kiip member, he oversees the USEF qualifying
and Major League Gaming. Currently series to support USA Esports to compete at
involved in the Esports ecosystem the 11th IESF eSports World Championship,
through The Next Level and Versus as well as leading all-new development and
Consulting. partnership of USEF activities with
International and NGB’s.
Taylor Ward STAN PRESS
Former entrepreneur in the 14+ years of experience in
gaming space with experience in gaming and esports as a former
startup financing, technology, and competitor turned senior
event design. marketer, partnerships, and
business development
professional.You can also read