Emerge Gaming lists after $5m IPO

18/04/2018 - 13:03

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Emerge Gaming (formerly Arrowhead Resources) started trading on the ASX today, after the former junior explorer completed a reverse takeover of private technology company Gaming Battle Ground for $3.7 million, and raised $5 million via an initial public offering.

Emerge Gaming lists after $5m IPO
Bert Mondello (left), Greg Stevens and Jonathan Hart are all part of the Emerge Gaming board.

Emerge Gaming (formerly Arrowhead Resources) started trading on the ASX today, after the former junior explorer completed a reverse takeover of private technology company Gaming Battle Ground for $3.7 million, and raised $5 million via an initial public offering.  

Under the offer, 399 million shares were issued at 2 cents each, with Hunter Capital Advisors acting as lead manager to the offer.

Hillarys-based Emerge operates the online eSports tournament platform Gaming Battleground, which generates revenue via player subscriptions and corporate sponsorship opportunities.

The company has executed a profit sharing agreement with African telecommunications firm MTN Group, under which its South African arm will provide Emerge with access to marketing support and its 31 million subscribers.

The company is chaired by Ziptel chief executive Bert Mondello.

Mr Mondello also serves on the board of WestStar Industrial, Servtech Global Holdings and Gaming Battle Ground.

Mr Mondello said there were good growth prospects for the company.

“We have received significant interest from institutional and retail investors both domestically and internationally, with a heavily oversubscribed capital raising,” he said

“This is not surprising as the global eSports market is growing at 6.6 per cent - faster than both the music and film industries.

“It is expected to reach $US122 billion in global revenue in 2019.”

Emerge founder Greg Stevens is chief executive and executive director of the company.

He has 10 years’ management experience in gaming startups.

Battleground co-founder Luka Ciganek will take an 8.3 per cent stake in the company, while Mr Stevens will have a 4.5 per cent interest.

The company said the funds raised from the offer would be used to increase sales and marketing and target new subscribers through the agreement with MTN Group.

Shares in Emerge were trading at 2.1 cents each at 3pm AEDT.

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