Inspiring the Future of Esports Through Innovation and Purpose - CSE:NWES - October 2019
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Inspiring the Future of Esports Through Innovation and Purpose October 28, 2019 I NewWaveEsports.com CSE:NWES
Disclaimer The information contained in this presentation has been prepared by NEW WAVE ESPORTS CORP. (“NWE”) is 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. By reviewing this presentation, you acknowledge and agree 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 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 WHO IS NEW WAVE ESPORTS? We are an investment company with the goal of elevating the entire industry of esports and competitive gaming. We provide capital and advisory services to esports organizations, teams, leagues, events, platforms, tools, and technology innovators. ACQUISITIONS ARM Top-line revenue performers HOLDINGS ARM Traditional investments
OBJECTIVES $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 sector Provide guidance for early and mature rooted in sustainability companies in the esports and gaming industries
THE TEAM The Gaming Society Daniel MITRE PLAYER STATS CEO & Managing Partner 17yr video game industry expert Collaborated with ESL One to introduce Battlefield to worldwide esports Fave Game of All Time Lead user research for Battlefield esports modes Marketing Monetization and Community Engagement at EA, SEGA, THQ, Spin Master, Sierra Online, and more Worked closely with Developers at DICE, BioWare, Respawn, Treyarch, and more Fave Esports to Watch Global campaigns and communications for major franchises including Battlefield ($1.6B/title), The Sims ($599M/title), FIFA ($1.4B/year), and more Advisor to Tiidal Gaming and The Gaming Society Co-Founded Thunderbolt CDG
THE TEAM Trumbull Fisher PLAYER STATS President & Managing Partner 15yrs of capital markets experience Fave Game of All Time Co-Founded FDB Capital, a real estate development Co-Founded Sui Generis, a successful equity hedge fund Co-led significant capital raises for a variety of industries Worked as a Trader at finance companies including Fave Esports to Watch National Bank of Canada, M Partners, Casimir, and more Member of Think Technologies Board of Directors Advisor to Tiidal Gaming
THE TEAM Clayton Fisher PLAYER STATS Financial Advisor 10yr Investment Advisor Fave Game of All Time Held positions at Cannacord, Raymond James, and Think Technologies Managed over $400M in assets for corporations around the world Thorough understanding of tech sector Fave Esports to Watch
ESPORTS & Gaming AT A GLANCE GAMING 2.5 BILLION GAMERS WORLDWIDE $230 billion in Revenue projected by 2022 Overwatch Franchise 380 Million esports fans buy-in esports $1.9 billion in Revenue projected by 2021 $20M Gamers 79% of esports fans under 35 Typically young, male, and affluent 2018 PRIZE POOL Viewers 50% of viewers in Asia Projecting 9 billion hours watched in 2021 $100M
HOW TO MAKE MONEY IN ESPORTS REVENUE SPONSORSHIP & ADS GAME PUBLISHER FEES MEDIA RIGHTS LEAGUE DISTRIBUTIONS CONTENT DISTRIBUTION STREAMS MERCHANDISE SALES TICKET SALES USER MONETIZATION PRIZE PURSES PRODUCTION SERVICES TEAMS EVENTS PLATFORMS TOOLS 80 60 50 80 100 95 46 54 45 37.5 60 75 26 30 25 Rev % 30 25 40 50 22 17 15 14 15 12.5 20 20 25 4 2 3 2 5 2 0 0 0 0 Merch Misc Content Distro Pub Fees League Distro Prize Purses Sponsors & Ads Chan. Monetization Merch Sponsor & Ads Media Rights Prod. Services Ticket Sales Merch Sponsor & Ads Monetization Sponsor & Ads Monetization *Estimated accumulative performance of current portfolio.
MYTHBUSTING ESPORTS TEAMS EVENTS PLATFORMS TOOLS Teams can generate Events drive consistent Platforms are highly Every vertical in esports large top-line revenues revenue through the year scaleable across ecosystem needs the globe supportive tools Franchise spots open Publishers lean on Opening doors to Dial in B2B clients revenues and exposure tournament organizers global audiences with B2C scalability to offset production increases potential revenue in mind Not all teams are Majority of overhead Development takes Not all publishers profitable allocated to event considerable capital and developers production and continued optimization allow API access
INVESTMENT 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, and secured two Advisor roles. 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 and two Advisor roles closed in March 2019
Events & tournament organizers Holdings INVESTMENT EVEN MATCHUP GAMING Obtained a significant equity stake in a Toronto-based leading esports and competitive gaming event organizer, broadcaster, and player management company that facilitates online and live tournaments. HYPER-ENGAGED AUDIENCE With 80+ events per year, their audience continues to grow with 7,400+ attendees, 25.8M+ social impressions, 5.5M+ YouTube views, and 1.8M+ Twitch views. 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
Platforms & networks Holdings INVESTMENT PLAYLINE Investment to support 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 250k users currently on their platform with continuous increasing Average Revenue per User and Lifetime Value per User. Key Partnerships Partnered with NASCAR for full on-site race activations and upcoming Twitch Rivals program to introduce esports betting component. *$250k CAD Investment closed in March 2019
Platforms & 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+. Target Vertical Esports gambling a potential company to be folded into shell. *$150K CAD Investment closed in August 2019
TECHNOLOGIES & TOOLS REVENUE SPONSORSHIP & ADS STREAMS USER MONETIZATION Shoutcaster tools Anti-cheat software Coaching tools Data & analytics Internet tech Peripherals Stream overlays Banking
TECHNOLOGIES & 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 development. Innovation An esports and competitive gaming venture with a focus on innovating and growing the esports industry. *Acquisition finalized in January 2019
Company Growth Public Listing Portfolio Avatar One Esports Growth & Capital Corp. Expansion Acquisition Investment Investments NWE Asia NWE Europe NWE Founded Capital Raise Capital Raise 2019 Aug May 2020 Nov Mar Feb Jan Oct Dec Future initiatives
COLLABORATION OPPORTUNITIES
COLLABORATION OPPORTUNITIES Deal flow Partnerships Sponsorships Global opportunities in Strategic alignment and Increase portfolio Teams, Events, Platforms, collaboration with esports, revenue and and Tools gaming, and non-endemic engagement with hyper- brands engaged esports audiences
CAPITALIZATION 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.
WARRANTS FROM PRIVATE PLACEMENTS STRIKE QUANTITY $.18 21,737,866 $.20 22,723,000 $.30 12,282,666 56,743,532
EXECUTIVE TEAM Daniel MITRE Trumbull Fisher TIFFANY LEE CEO & Managing Partner President & Managing Partner CFO & Corporate Secretary Daniel has 17+ years experience in video Trumbull holds a B.A. in Law and is Tiffany holds a B.B.A. Honors from Wilfrid game marketing, developer and player qualified with over 15 years of capital Laurier University. She currently holds a communications, and building large-scale markets experience. He has contributed position as a Controller at Mojave Jane communities for AAA franchises, t o s o m e o f t h e l a rg e s t f i n a n c i a l Brands Inc. In previous roles, she was including esports and competitive institutions in Canada by raising Senior Staff Accountant at Constellation gaming experiences. He has led global significant amounts of capital and has co- Software Inc. and Intermediate Staff campaigns and community programs for founded financial companies and Accountant at Hub International. Electronic Arts, Sega of America, THQ, investment funds. In previous positions, Music Mastermind, Spin Master Studios, Trumbull was Co-Founder, COO, and and Sierra Online. Daniel is also an Head of Trading for a hedge fund. Advisor to Tiidal Gaming, an Advisor to The Tech Society, and Co-Founder of Thunderbolt CDG.
ADVISORS Neil Duffy STAN PRESS Taylor Ward PETER CUNNingham Chief Commercial Officer of 10+ years of experience as Former entrepreneur in the Principal Owner of Lions Edge Capital WorldGaming.com Director of an Investment Advisor in the gaming space with experience in and Cunningham Venture Group. Co- Tiidal Gaming financial services industry startup financing, technology, and Founder of Think Technologies and event design Supreme Heights. Advised G-TEC, Khiron, High Hampton, bewhere, and more. Held positions at Raymond James and Macquarie Bank. JOHN DEWdNEy CLAYTON FISHER JOEL FREUDMAN JOURDAN BOLIVAR President of a private Toronto-based 10+ years of experience as Joel serves as President and Director of Financial Analyst within the corporate advisory practice. Co- an Investment Advisor in the Resurgent Capital Corp., a merchant development markets and Founder, Officer, and Director of financial services industry banking operation based in Toronto, financial industry several private and publicly listed ON. Before switching into finance, he small-cap companies across a variety worked in private practice and in-house of industries. as a former securities and M&A lawyer.
BOARD of Directors TIFFANY LEE Jeffrey Stevens BYRon COULTHARD TRUMBULL Fisher Tiffany holds a B.B.A. Honors Over 18 years of professional Chairman of the Board of BRS President of New Wave Esports from Wilfrid Laurier University. experience in the Canadian capital Resources LTD She currently holds a position as markets. He has worked on the a Controller at Mojave Jane retail-side of the fence as an Brands Inc. In previous roles, she Assistant Investment Advisor, on was Senior Staff Accountant at the buy-side as an Arbitrage Constellation Software Inc. and Trader at a Hedge Fund, and on Intermediate Staff Accountant at the sell-side in both a Sales and Hub International. Trading capacity.
CONTACT US CONTACT@NEWWAVEESPORTS.COM NEWWAVEESPORTS.COM October 28, 2019
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