TIDMGILD
RNS Number : 6220R
Guild Esports PLC
30 October 2023
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014, as retained as part of
the law of England and Wales. Upon the publication of this
announcement via the Regulatory Information Service, this inside
information is now considered to be in the public domain.
Press Release
30 October 2023
Guild Esports PLC
("Guild Esports", "Guild", or "the Company")
Up to GBP1 million subscription by strategic investor
Guild Esports PLC (LSE: GILD; OTCQB: GULDF), a global
gaming-focused media business, is pleased to announce that it has
signed a subscription letter with an international esports, content
creation and media brand ("the Brand") for the Brand to subscribe
for up to 200,000,000 new ordinary shares of GBP0.001 each in the
capital of Guild ("Ordinary Shares") at a price of GBP0.005 per
Ordinary Share, to raise up to GBP1,000,000 before expenses.
The Brand subscribed for the Ordinary Shares in three tranches,
payable entirely in cash. The first two tranches are unconditional,
with the first tranche of GBP250,000 already subscribed for and the
second tranche of GBP250,000 due and payable on 30 October 2023.
The third tranche of the subscription is for GBP500,000 and is
conditional on the negotiation and entry into a wider commercial
agreement between the Brand and Guild.
Guild expect that the synergies between the Company and the
Brand will enhance operational efficiencies and amplify value
creation for stakeholders. The shared vision and complementary
capabilities of both companies position them well to unlock growth,
innovation, and market penetration. The Board anticipates that both
companies will explore avenues for how collaboration can benefit
each other's businesses, partners, audience footprint and generate
future value. The investment and proposed partnership are a
continuation of Guild's long-term strategy to establish itself as a
leader within the esports, media and gaming sector. The Company
will make a further announcement on the commercial agreement in due
course.
Use of funds
The net proceeds of the subscription will provide Guild with
additional working capital which will be used to implement Guild's
strategic drive for its brand and services more deeply into the
industry eco-system as well as to facilitate international
expansion. The Company intends to target new geographical areas and
audiences, with a particular focus on MENA. MENA is an area of
rapid growth for gaming and esports, estimated to have 87.9 million
gamers by 2026 (source: Statista, 2023), and acts as a geographic
bridge between Europe, Asia and Africa, all of which have growing
gaming communities. Regional governments are investing heavily in
esports, with the Kingdom of Saudi Arabia recently announcing the
Esports World Cup, expected to have the largest prize pool in
esports history (source: Reuters, 2023). The Directors of the
Company believe that MENA offers the opportunity for rapid growth
and are keen for Guild to establish an immediate foothold in the
region.
Prospectus and Admission
The Ordinary Shares to be issued to the Brand will rank pari
passu in all respects with the existing Ordinary Shares. However,
Guild does not currently have sufficient headroom for the Ordinary
Shares issued and to be issued pursuant to the subscription to be
admitted to the Official List maintained by the FCA and to trading
on the London Stock Exchange PLC's Main Market without the
publication of a prospectus. The Company has therefore agreed with
the Brand that it will use its reasonable endeavours to procure
admission of the Ordinary Shares within 12 months of the first
allotment, as permitted and required by the Listing Rules.
The Company will prepare and, subject to approval by the FCA,
publish prospectus in due course. Once the prospectus has been
published, application will be made for the 200,000,000 new
ordinary shares (assuming the subscription becomes wholly
unconditional) to be admitted, to be admitted to the Standard List
segment of the Official List and to trading on the Main Market of
the London Stock Exchange plc.
Shares and Total Voting Rights
Only the first tranche of shares has been subscribed for and
therefore following issue of those shares the total number of
issued shares and total number of voting rights will be
672,317,362. The Company does not hold any shares in treasury.
Further announcements in respect of the second and third
tranches will be made in due course. However, assuming the
subscription becomes wholly unconditional, there are no other
allotments (other than pursuant to the subscription) and no shares
are held in treasury, the total number of issued shares and the
total number of voting rights in the Company will be 822,317,362
following the completion of the subscription.
Arkios Limited acted as bookrunner to the placing and Guild's
Special Advisor to the Board, Stephen Duval, was integral to
negotiating the deal.
Jasmine Skee, CEO of Guild Esports, commented: "This
subscription marks a significant milestone in Guild's journey and
paves the way for exciting opportunities ahead. There is immense
international appetite for esports, particularly in the MENA region
which is rapidly emerging as an esports hub. The investment is
crucial to furthering our vision of becoming the leading
international esports and gaming-focused media brand and Guild
looks forward to deepening ties with a complementary business."
Stephen Duval, Special Advisor to the Board of Directors, Guild
Esports: "This deal is an exciting development for Guild. We
believe the investment and partnership (in due course) will work
seamlessly within Guild's strategy to solidify itself as a globally
robust leader in the esports and gaming ecosystem."
For further information please contact:
Guild Esports
Jasmine Skee via Tancredi +44 207 887
Chief Executive 7633
-------------------------
Tennyson Securities
-------------------------
Corporate Broker
Peter Krens +44 207 186 9030
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Tancredi Intelligent Communication
Media Relations
-------------------------
Helen Humphrey
Charlie Hobbs +44 7449 226 720
Jasmine Gadhavi +44 7897 557 112
guild@tancredigroup.com +44 7931 435 236
-------------------------
About Guild Esports:
Guild Esports PLC is a global gaming-focused media business that
fields professional players in gaming competitions under the Guild
banner. Our in-house training academy aims to attract and nurture
the best esports talent, and our goal is to provide the ultimate
entertainment experience alongside a distinctive lifestyle brand
authentic to the esports community worldwide. Guild is led by an
experienced management team of entertainment sector and esports
veterans and co-owned by David Beckham. The Company is
headquartered in the UK and its shares are listed on the Main
Market of the London Stock Exchange (ticker: GILD) and on the OTCQB
Venture Market in the United States (ticker: GULDF). Please visit
www.guildesports.com for more information.
Forward-looking statements
This Announcement includes forward-looking statements. These
forward-looking statements involve known and unknown risks and
uncertainties, many of which are beyond the Company's control and
all of which are based on management's current beliefs and
expectations about future events. Forward-looking statements are
sometimes identified by the use of forward-looking terminology such
as "believe", "expects", "targets", "may", "will", "could",
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or the negative thereof, other variations thereon or comparable
terminology. These forward-looking statements include all matters
that are not historical facts. They appear in a number of places
throughout this Announcement and include statements regarding the
intentions, beliefs or current expectations of management or the
Company concerning, among other things, the results of operations,
financial condition, prospects, growth, strategies and dividend
policy of the Company and the industry in which it operates. In
particular, the statements included in the sections entitled "Risk
Factors" and "Business" of this Announcement regarding the
Company's strategy, targets and expectations in respect of the
Company's expected revenue, profit, growth, accounting tax rates,
and capital expenditure upon the operating results of the Company
as well as other expressions of the Company's targets and
expectations and other future events or prospects are
forward-looking statements.
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