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All figures are in United States dollars unless otherwise stated.
- Fourth Quarter 2020 Revenues of $7.2 Million;
- Q4 Revenue Exit Run Rate of $28+ Million
- Annual Year-over-Year Revenue Growth Rate 163%
- Corporate Realignment Adds Focus and Attention to Core Macro Initiatives
- Application for Uplist to Nasdaq Under Review
TORONTO, Jan. 8, 2021 /PRNewswire/ -- Engine Media Holdings, Inc. ("Engine Media" or the "Company"; TSX-V: GAME; OTCQB: MLLLF), announced results for the fourth quarter and full year ended August 31, 2020.
Lou Schwartz, Chief Executive Officer, said, "The business realignment we implemented over the last few months is already yielding significant cost savings, streamlined product development and improved business execution. We are off to a strong start in fiscal 2021, and our pipeline of new opportunities leads us to expect solid growth this year across all of our businesses. Additionally, our recent acquisitions have made significant contributions, which are reflected in the fourth quarter, where net revenues were up 192%, sequentially, to $7.2 million and up 163% for the annual period on a year-over-year basis."
Results for the latest quarterly period include contributions from the Frankly Inc. and Winview Inc. three-way merger which closed on May 8, 2020.
Extinguishment of Convertible Debt:
The Company also announces that, further to its news release dated December 16, 2020, the Company completed its previously announced convertible debenture settlements (the "Debt Settlements") of an aggregate of principal amount $10,726,393 in outstanding convertible debentures (the "Debt") through the issuance of 1,430,186 units (the "Units") at a deemed price of $7.50 per Unit, with each such Unit consisting of a common share and three-quarters (3/4) of a warrant, with each whole warrant exercisable into a common share at an exercise price of $15 per share for a period of three years. Included in the Debt Settlements was the $3,000,000 convertible debenture that was issued in connection with the Company's acquisition of a 20% equity interest in One Up LLC. The Debt was completely extinguished upon the issuance of the Units. These settlements add $10.7 million to shareholder's equity and reduce liabilities on the Company's balance sheet by the same amount, as well as eliminate the related interest expense. The Debt Settlements were approved by the TSX Venture Exchange.
Recent Business Highlights:
Stream Hatchet co-founder and CEO Eduard Montserrat earns Tempest Esports Business Award for Digital Executive of the Year
Engine Media focuses efforts on its core Esports/Gaming/Media Content Management/Data assets as it sells motorsport publishing businesses
Engine Media & Panasonic North America: Collegiate Clash powered by Panasonic
UMG & VALORANT First Strike: North America Qualifiers
UMG & Gears of War: North America Qualifiers
Stream Hatchet & Riot Games: League of Legends Worlds 2020 ("Worlds")
About Engine Media Holdings, Inc.
Engine Media is focused on accelerating new, live, immersive esports and interactive gaming experiences for consumers through its partnerships with traditional and emerging media companies. The company was formed through the combination of Torque Esports Corp., Frankly Inc., and WinView, Inc. and trades publicly under the ticker symbol (TSX-V: GAME) (OTCQB: MLLLF). Engine Media will generate revenue through a combination of: direct-to-consumer and subscription fees; streaming technology and data SaaS-based offerings; programmatic advertising and sponsorships; as well as intellectual property licensing fees. To date, the combined companies have served clients comprising more than 1,200 television, print and radio brands including CNN, ESPN, Discovery / Eurosport, Fox, Vice, Newsweek and Cumulus; dozens of gaming and technology companies including EA, Activision, Blizzard, Take-Two Interactive, Microsoft, Google, Twitch and Ubisoft; and have connectivity into hundreds of millions of homes around the world through their content, distribution and technology.
Cautionary Statement on Forward-Looking Information
This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Engine to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. In respect of the forward-looking information contained herein, Engine has provided such statements and information in reliance on certain assumptions that management believed to be reasonable at the time, including assumptions as to obtaining required regulatory approvals. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements stated herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on forward-looking information contained in this news release.
The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Engine does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Engine Media Holdings, Inc.