SOL Global Investments (SOL.C) now owns 12.5% of Torque Esports (GAME.V) and has filed early warning reports thusly.
Torque, formerly Millennial Esports, is a Canadian video gaming company operating in North America and Europe. The company aims to drive the esports ecosystem through M&A of gaming assets.
“Core business segments include gaming content production, data, esports events and content production, and hardware,” according to the company’s website.
Here’s what equity.guru‘s Joseph Morton had to say about the company earlier this month:
Last year, GAME.V had no game. They had committed the mortal sin of being early to the esports party, and piled on the debt to stay afloat. Now it’s different. Their restructuring focuses on two areas—esports racing and esports data provision, and publishing, with IP, content and data expertise in their back pocket.
Since then, the company has rebranded and rolled back its share count from 11.7 million shares issued and outstanding to 2.3 million.
Then, the company announced its intention to acquire UMG Media (ESPT.V), a company which hosts online and live gaming events.
Torque already has four subsidiaries to its credit:
- Stream Hatchet
- Eden Games
Stream Hatchet provides live analytics to streamers, letting you know if that video livestream of you eating cold soba was indeed hittin’ different at 3 am.
IDEAS+CARS creates car-related content for you. GIFS, infographics, high-res pics… You name it.
Allinsports designs nutty racing simulators like the kind you see below.
Eden Games has designed long-lasting game franchises like V-Rally, Alone in the Dark and Need for Speed. Pretty cool.
Back to SOL: The company also holds a $3.1M Series A convertible debenture issued by Torque which matures in July 2022 and is convertible at $0.50.
Pursuant to the terms and conditions the Debenture, the holder can, at any given time, only convert that amount of the Debenture that would result in the holder not holding more than 10% of the issued and outstanding Common Shares, taking into account both the Common Shares comprising the Units and the Common Shares underlying the Warrants.
Torque is currently trading at $1.70, down 5.6% on the day. The company has a market cap of $3.9M. SOL closed at $0.43, down 7.5%.
Full disclosure: SOL Global is an equity.guru marketing client.