An online gaming provider, Emerge Gaming Limited (ASX: EM1) on 30 May 2019 announced that it had signed an MOU with the U.S. based Digital Circus Media LLC for launching its products, especially the GameCloud game streaming technology, throughout North America.
Digital Circus Media LLC is a Game Development and Interactive Storytelling company which focuses on building strategic content as well as partnerships across multiple media platforms. Digital Circus is led by David Wheeler, who is an award-winning media executive in the field of entertainment (video games and interactive movies). He was also the Director of content at EA, Vivendi and Universal. It offers expertise in media development and production, game development, consulting, branding, design along with strategic digital planning.
In the US and Canada, Emerge Gaming, along with Cloudzen and strategic partners, have started working on the planning phase of the North American program. This program will be assisted by David Wheeler in an advisory capacity in developing gaming content. With a game studio in Toronto and strategic offices in New York and Los Angeles, the collaboration will be targeting content partners in the upcoming months.
Apart from the traditional studio and game development services, Digital Circus will also be introducing significant partnerships along with other relevant resources for endorsing, evolving and distributing games which will support the success of the product launches.
This agreement is a win-win situation for both the parties as Digital Circus will have the opportunity of the eSports content silo globally and would be able to capitalize on its fast-growing audience. On the other hand, Emerge Gaming would be able to utilize the proprietary AAA content of Digital Circus which has a strong following.
Gregory Stevens, CEO of Emerge Gaming Limited, stated that the collaboration between Digital Circus and the company would open up new market for GameCloud technology as well as new paths for mobile eSports in North America. GameCloud offers a one-stop platform for instant access to multiple AAA-rated 3D games. Further, GameCloud technology provides live streaming on mobile devices without downloading the game.
During the Q3 FY2019, the company announced Arcade X launch plans to Australian and other tier 1 countries. Arcade X has access to 350 million subscribers through distribution JV partnership with iCandy Interactive Limited (ASX: ICI).
Arcade X is an eSports tournament platform where the players have to compete in the sponsored tournaments in order to establish the ranking, win prizes and also earn participation rewards which can either be utilized to enter raffles for more prizes or can also be used purchase and trade physical merchandise and digital assets.
By the end of Q3 FY2019, EM1 had net cash and cash equivalent of A$1.952 million. In Q4 Fy2019, the company expects the cash outflow of A$0.800 million.
By the end of the trading session on 30 May 2019, the closing price of EM1 was A$0.027, up by 42.105% as compared to its previous closing price. Today, the shares are trading at A$0.024, down by 11.11% with a market cap of ~ A$17.7 million and approximately 655.59 million outstanding shares (As at 1:10 PM AEST, 31 May 2019). EM1 has generated an outstanding YTD return of 285.71%.
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