On a relatively quiet day on the markets with Americans taking the day off for Thanksgiving, one European based esports company decided to make a splash by acquiring the intellectual property of a fellow competitor.
This morning ESE Entertainment Inc. (TSX-Venture:ESE) (OTCPK:ENTEF) announced that it has entered into an asset purchase agreement with the owner of K1CK Esports Club, Pedro Fernandes, whereby ESE has agreed to acquire from the Vendor all of the assets relating to, and required for, the continued operation of K1CK.
K1CK is a pioneer of esports in Europe. K1CK manages esports teams that compete across multiple games and platforms and, since its inception, K1CK has seen continued success in esports competitions across Europe and the rest of the world. The acquisition of K1CK will allow ESE to further its growing position in the esports industry.
The K1CK team has already been integrated into ESE through the licensing and management of its professional team. This acquisition of intellectual property pursuant to the Agreement will be the final step, allowing ESE to rapidly scale and increase the value of the K1CK brand on a global level.
ESE will pay to the Vendor aggregate consideration of C$207,500, consisting of the following: (i) C$120,000 in cash, with C$60,000 payable on closing and C$60,000 payable on demand by the Vendor after January 20, 2021 ; and (ii) C$87,500 in common shares of the Company at a deemed price of C$0.25 per share, for a total of 350,000 shares. The Vendor has also agreed to work with ESE to operate K1CK following the closing of the Agreement.
News of the acquisition sent shares of ESE up 10.64% in early-afternoon trading to $0.26. Technical traders should also take note that today’s move breaks the stock out of a key resistance level at $0.25, which may suggest some further upside potential in the coming days.
