TIDMCHSS
RNS Number : 5482V
World Chess PLC
06 April 2023
NOT FOR RELEASE, DISTRIBUTION, PUBLICATION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED
STATES, CANADA, AUSTRALIA, NEW ZEALAND, THE REPUBLIC OF SOUTH
AFRICA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH
JURISDICTION.
This announcement is an advertisement that is being published in
connection with the admission of the Company's issued, and to be
issued ordinary share capital, to the standard segment of the
Official List and to trading on the London Stock Exchange PLC's
Main Market for listed securities ("Admission") in respect of which
the Company has published a prospectus dated 20 March 2023 which is
available from https://worldchess.com/us/investors ("Prospectus").
This announcement is not and does not constitute or form part of,
and should not be construed as, an offer of securities for
subscription or sale in any jurisdiction nor a solicitation of any
offer to buy or subscribe for, any securities in any jurisdiction,
nor shall it or any part of it, or the fact of its distribution,
form the basis of or be relied on in connection with, any contract
or commitment whatsoever. This announcement does not constitute a
recommendation regarding any securities. Prospective investors
should not subscribe for or purchase any securities on the basis of
this announcement. Investors may invest in the Company's securities
solely on the basis of the information in the Prospectus (together
with any supplementary prospectus, if relevant,) including the risk
factors set out therein, provided that (i) they are not subject to
the laws of a jurisdiction in which the release, distribution,
publication, directly or indirectly, in whole or in part of this
announcement or the Prospectus might constitute a violation of the
relevant laws or regulations of such jurisdiction and (ii) their
subscription will not place the Company in breach of the laws of
the jurisdiction that apply to the prospective investor.
06 April 2023
World Chess Plc
("World Chess" or the "Company" or the "Group")
Admission to trading on the Main Market of the London Stock
Exchange
World Chess Plc (LSE: CHSS) is pleased to announce that its
entire ordinary share capital will be admitted to the Official List
(by way of Standard Listing under Chapter 14 of the Listing Rules)
and to trading on the London Stock Exchange's Main Market for
listed securities ("Admission") today at 08:00 AM under the ticker
"CHSS".
As part of the Admission, the Company has completed a
subscription and retail offer (together the "Fundraise") of new
ordinary shares, raising gross proceeds of GBP3.04 million. On
Admission, the Company will have a market capitalisation of
approximately GBP41.7 million.
Advisers to the Company include Novum Securities (financial
adviser), Marriott Harrison (UK lawyers) and PKF Littlejohn
(reporting accountants), whilst the offer of new Ordinary Shares to
retail investors was supported by the PrimaryBid platform.
Statistics
Subscription Price (per Share) 6.25 pence
Market capitalisation on Admission GBP41.7m
Gross proceeds of the Fundraise GBP3.04m
Total number of shares in issue 666,905,501
LSE Ticker CHSS
ISIN GB00BN70RC41
Highlights
-- World Chess owns the exclusive rights to the official online
chess gaming platform, FIDE Online Arena. The Company has taken
chess into the mass market through its new commercial approach to
chess competitions, with an innovative approach introducing new
products and concepts into the sport.
-- With its experienced management team with extensive
experience working in the chess industry, the Company has developed
a blend of revenue streams, with 44% of revenues generated through
its online playing platform, 28% through events and 28% through its
chess clubs and merchandise.
-- Audited full-year 2021 revenue grew by 28% to EUR3.22 million
while unaudited revenue for the half-year 2022 grew by 120% to
EUR1.98 million.
-- The Company has built a proprietary Fair Play Suite, a
complex of anti-cheating tools that allow tracking and
identification of fair play violations and also holds the rights to
grant paid access to the official ratings and titles to third-party
platforms.
-- World Chess is growing brand awareness across multiple
markets and has established a presence in key international
locations, holding major events in the US, Germany, the UK and
UAE.
-- The new funds raised will be used to support the Company's
growth strategy, including the further development of the World
Chess online playing platform and marketing initiatives.
Ilya Merenzon, Chief Executive Officer of World Chess, said:
"The completion of our IPO comes at an exciting time for chess.
The number of players and spectators of the sport is growing and
with this new commercial opportunities are opening up. Using our
public profile and position as a public company, we are well-placed
to capitalise on these opportunities and grow World Chess.
"In an age when people feel disconnected and fear the dumbing
down of the global conversation, the sport of chess offers a
challenging and engaging way for people across the world to connect
and inspire each other. In our view, there is no rival to the
intellectual challenge of chess. Whether people play the game
online or at our club, watch the tournaments or enjoy following
their favourite chess player, our unique ecosystem of products and
services is making chess more accessible and widely available at a
global level."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For more information please visit wordchess.com/us/investors or
contact:
World Chess Via Yellow Jersey PR
Ilya Merenzon,
CEO
Novum Securities
Limited
David Coffman /
George Duxberry +44 (0) 20 7399 9400
Yellow Jersey
PR
Charles Goodwin +44 (0) 77 4778 8221
Annabelle Wills +44 (0) 77 7519 4357
Notes to Editors
About World Chess Plc
World Chess Plc was established in January 2017 together with
the key operational company of the group World Chess Events Limited
(UK). World Chess Plc subsequently acquired World Chess US, Inc.
(USA) and World Chess Rus LLC (RUS), two companies that
participated in the World Chess project prior to the registration
of the holding. These acquisitions took place respectively in 2017
and 2018. World Chess Digital Limited (Hong Kong) was acquired in
June 2019 and later ceased its operations following the transfer of
its business out of the UK operational entity.
In October 2021, World Chess Europe GmbH was established in
Germany to address the Brexit bureaucratic complexities. In 2022
following the Russian invasion of Ukraine, World Chess relocated
all its business activities out of Russia, selling all its Russian
assets and with all Russian staff relocated. The Company
incorporated World Chess Sakartvelo Limited in Tbilisi (Georgia) to
continue its projects in the Eastern region. All of the companies
listed above, with the exception of World Chess Rus LLC which has
been sold, are 100% owned by World Chess Plc.
Whilst the Company was incorporated as a holding company in
2017, the origins of the World Chess project, and first activities,
date back to 2012. The relationship with FIDE commenced in 2012
with which Ilya Merenzon and other core members of the current team
were involved.
Business Model
Currently, the World Chess eco-system develops and
commercialises chess on a global level using product verticals that
fit into seven categories:
1. Online Platform
The World Chess online platform offers multiple opportunities
for chess players to interact and develop through chess gaming,
educational and news content, and broadcasting of offline chess
events. The platform incorporates the official FIDE online gaming,
FIDE Online Arena (FOA), and is the only place for chess players
across the globe to obtain online ratings and titles recognized by
FIDE. It also allows players to participate in online -rated
tournaments.
The global online chess market remains relatively undeveloped as
a share of the estimated 600 million adult players globally*, but
monthly traffic to chess websites grew by as much as 75% at the end
of H1 of 2020 compared to the end of 2019**. Chess gaming has also
seen strong growth on Twitch.com, a global streaming platform,
where broadcast hours of chess increased by 150% in the past
year.
* A 2012 study by YouGov indicated that more than 600 million
adults play chess regularly, and at least 70% of the adult
population of countries including US, UK, Germany, Russia, and
India have played chess at some point during their lives .
**Playmagnus Annual Report of 2019
2. Tournaments
World Chess organi sed three World Chess Championship cycles,
including FIDE Championship Matches in New York and London.
Recent changes in the sport have encouraged new forms of chess
events and the Company intends to continue developing its own
events which will not be bound by the limitations of official
events. World Chess has developed a signature format, Armageddon,
that is fast paced yet organised according to conventional chess
rules and regulations.
3. Merchandise
World Chess develops and sells official World Chess merchandise,
including the official World Chess Championship Chess Set designed
by Pentagram. The chess sets cover a range of price points from
US$32 to US$639, all based on the official and patented design.
4. World Chess Clubs
In 2022 a new chess club, called World Chess C lub Berlin, will
open in Berlin to act as a central European hub for World Chess
activities. The new venue will feature opportunities to host
amateur and top-level tournaments all year round. The venue already
hosted FIDE Grand Prix in 2022. It is the Director's intention to
open further chess clubs in major cities in due course.
5. Sponsorship
Sponsorship has been the main source of revenue for the Group
since its inception. Initially, sponsorship was linked to events
organised by World Chess, however more recently the Group has
expanded its sponsorship opportunities to the online platform .
World Chess has a growing portfolio of long-term and repeat
event sponsors including, but not limited to, Algorand, Unibet,
Mercedes Benz and BMW. These relationships, coupled with the
growing media and online interest in World Chess have enabled the
Group to raise amounts ranging from EUR10,000 to over EUR1,000,000
per sponsor often with multi-year arrangements.
6. Media
World Chess has developed a brand that is recognisable,
appealing, and represents a younger, more image conscious side of
the global chess community. This brand has grown through
broadcasting, media partners, and a continued strong social media
presence. The Armageddon series, a series established and developed
by World Chess, has also helped to increase awareness of the World
Chess brand.
7. Talent
The Group has established Chess & Co, an agency to partner
brands with individual chess players. Chess & Co. has been
created in response to corporate interest in partnering their
brands with individual chess players. Unlike other major sports,
very few chess players are able to support themselves to become
professionals and the chess community remains largely
self-funded.
The Directors believe there are significant opportunities in
partnering players with brands, utilising the reputation of World
Chess and leveraging the pre-existing relationships of World
Chess.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
LISIAMFTMTIMBRJ
(END) Dow Jones Newswires
April 06, 2023 02:00 ET (06:00 GMT)
World Chess (LSE:CHSS)
Historical Stock Chart
From Apr 2024 to May 2024
World Chess (LSE:CHSS)
Historical Stock Chart
From May 2023 to May 2024