Former miner Arrowhead eyes South African e-Sports market
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Miner-turned-gamer Arrowhead has its sights firmly set on the burgeoning e-sports market, today announcing it was starting with South Africa.
The company (ASX:AR1), soon to be renamed Emerge Gaming Limited (ASX:EM1), has signed a content distribution agreement with $26 billion telco MTN Group for its Gaming Battle Ground platform (GBG).
MTN’s 30 million South African mobile phone subscribers will be given access to the GBG platform with revenues for EM1 to be generated through daily fees to their customers.
“The agreement will assist GBG to fast track the generation of registered users, the commercialisation of the GBG Platform and should provide an immediate source of revenue for GBG,” chief Gregory Stevens told the market.
“It also creates a template to enable us to enter into a vast number of jurisdictions and negotiate Enterprise partnerships with multinational and global enterprise partners and telcos, which we are currently pursuing.”
The acquisition of GBG was first announced back in August, and passed by shareholders in October but has been held up by regulatory hurdles – progress of which it described as “advanced significantly albeit slowly”.
Now it has to go back to shareholders again to pass the acquisition and proposed $5 million capital raising as well as the spinout of their subsidiary business, Tantalum International Limited.
Shares in the company have been suspended from trade since October 7 and will remain suspended until it complies with ASX rules and gains full shareholder approval.
The company raised $233,000 last quarter to fund working capital and had $81,000 in the bank at the end of the period.
Outflows for the current period are estimated at $140,000.