The share price of ESE Entertainment Inc. (OTCQB-ENTEF) surged noticeably as it reached $1.0579 at the previous close, up by 6.87%. In the past week, ENTEF stock posted a performance of 5.79% compared to its monthly performance of 32.52%. ENTEF stock soared when it announced its subsidiary had signed an agreement to distribute motion platforms.
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What is the agreement ENTEF subsidiary has entered into?
Europe-based ESE Entertainment is a technology and entertainment company focused on gaming, especially esports. Internationally, ENTEF provides technology, infrastructure, and fan engagement services to some of the world’s leading video game companies. Aside from running ecommerce channels, ENTEF also operates esports teams and gaming leagues. Furthermore, ENTEF is considering selective acquisitions aligned with the Company’s objective to become a dominant global player in esports technology.
A leading manufacturer of motion platforms (“Motion Systems”) has entered into a distribution agreement with ESE Entertainment subsidiary Digital Motorsports (“DMS”). Racing drivers and esports competitors will benefit from motion platforms and simulators distributed by the agreement.
Motion Systems designs, manufactures and supplies flexible, modular and highly performing motion platforms, cockpits and accessories to the automotive, motorsports, aviation and defense industries. In Motion Systems’ more than a decade of involvement on the simulation market, it has been able to collaborate with a variety of global organizations including Airbus Defence & Space SAS, Toshiba Research Institute, Bohemia Interactive Simulations, Lander Simulation & Training Solutions and Next Level Racing.
Qubic Systems incorporates advanced motion systems and lightweight, compact products into its offering in addition to linear actuators. Motorsports is at a turning point, and this partnership will enable DMS to provide Tier 1 simulators, previously exclusive to F1 drivers and teams, at a fraction of the cost and with less setup complexity to consumers. Engagement with “Digital Drivers” will help to achieve a diverse and accessible Motorsport discipline, while also achieving the goal of engaging a new generation of drivers.
This month, ESE Entertainment completed its previously announced acquisition of 100% of the shares of Digital Motorsports (A/K/A Auto Simulation Limited), a provider of advanced simulation racing infrastructure, technology, and support.
How has the recent acquisition turned out?
Digital Motorsports was acquired by ENTEF through a share purchase agreement made on August 13, 2021. On closing of the Transaction, the purchase price consisted of CAD $1,681,250 to be paid in cash. ENTEF also to issue 941,500 common shares at Closing as part of the transaction. To facilitate the transaction, ENTEF intends to distribute up to 8,473,500 Common Shares in six (6) equal installments every six (6) months, the first installment being released on December 31, 2021, after certain milestones are achieved post-Closing. As part of this investment, ESE Entertainment (ENTEF) has committed €250,000 to fund Digital Motorsports’ working capital requirements.