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 clients
Our 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 demand
Scalable 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 support
Our 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 Performance
CONTACT US CONTACT@NEWWAVEESPORTS.COM MARCH 2020 | NEWWAVEESPORTS.COM
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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 Player
HOW 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 Capabilities
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 industry Provide guidance for early and mature rooted in sustainability companies in the esports and gaming industries
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. 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 2019
Teams & 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 2019
Events & 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 2019
Platforms & 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 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+. Via avatar one esports capital corp Target Vertical Luckbox, an esports betting platform, received shell funding. *$150K CAD Investment closed in August 2019
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 and tools 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 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 Feb
PRESS 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 authority
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 *Insiders own 10%
WARRANTS FROM PRIVATE PLACEMENTS STRIKE QUANTITY $.18 21,737,866 $.20 22,723,000 $.30 12,282,666 56,743,532
Q2 2019 financial statement Comprehensive Profit from operations $69,424 Unrealized gains $658,425
ADVISORS 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.
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