OverActive Media reports record quarterly sales | Your money

Record third quarter 2021 revenue of $ 5.5 million

Strong cash balance of $ 36.2 million

Secured exhibition space permit for planned venues, concept design and rental conditions

TORONTO, Nov. 17, 2021 (GLOBE NEWSWIRE) – OverActive Media (“OverActive” or the “Company”) (TSXV: OAM) (OTCQB: OAMCF), a global sports, media and entertainment company for today’s fan generation, has released today the financial results for the three and nine months ended September 30, 2021.

The Company’s Abridged Consolidated Interim Financial Statements, the Notes to the Financial Statements, and Management’s Discussion and Analysis for the three and nine month periods ended September 30, 2021 are available on the Company’s website at www.overactivemedia.com and under the Company Profile. available SEDAR at www.sedar.com. Unless otherwise noted, all amounts are in Canadian dollars ($).

Highlights of the third quarter of 2021

Total revenue for the third quarter of 2021 reached a record $ 5.5 million, an increase of 108.1% adjusted for timing differences related to the league’s revenue share and a 9.8% year-over-year increase. Adjusted EBITDA1 loss of $ (0.3) million for the third quarter of 2021 compared to Adjusted EBITDA of $ 0.4 million for the same period last year. Although total revenue increased, the decrease in Adjusted EBITDA was mainly due to higher operating expenses related to our public listing. Net loss of (6.4) million year period. Net loss for the quarter included $ 6.3 million in non-cash charges compared to $ 1.8 million in non-cash charges for the same period last year. As of September 30, 2021, the Company had cash and cash equivalents of $ 36.2 million compared to $ 5.6 million as of December 31, 2020. This reflects gross proceeds of $ 23.0 million to the Company from a brokered subscription slip that was completed in the third quarter in connection with its qualifying transaction.

Recent developments

After the quarter ended, the company received approval from the Board of Governors of Exhibition Place for the concept design and rental terms related to the company’s construction plans for a world-class performance venue in Toronto, Ontario. The company anticipates the final review by Toronto City Council will take place this December and is optimistic about receiving the requested permits. Once approved, OAM expects to partner with a global venue operator in the construction and future management of the venue.

“We are excited to report such strong financial performance in the third quarter with adjusted sales growth of 108.1% and near breakeven EBITDA,” said Chris Overholt, President and Chief Executive Officer of OverActive Media. “Significant contributions to our sales growth were made by strong sponsorship income and league sales shares as well as higher prize money winnings. We believe this year-over-year momentum will continue into the fourth quarter, mainly due to the significantly reduced recurring revenue base and as more sponsorship partners recognize the value of our team franchise model and additional revenue from league shares. “

“Looking into the fourth quarter, we believe our healthy balance sheet will allow us to pursue a multifaceted growth strategy, including potential acquisitions to expand our reach. We believe that the continued growth in league revenue shares as well as the maturation of our sponsorship model will result in significant revenue growth, while the revenues from our venue project, once completed, will add significant value over the long term, “added Overholt. added.

The following table shows a reconciliation of net profit (loss) to adjusted EBITDA for the past periods:

1 Adjusted EBITDA is a non-IFRS measure. See “Non-IFRS Measures” at the end of this press release.

FOR FURTHER INFORMATION PLEASE CONTACT:

Babak Pedram, Investor Relations, Virtus Advisory Group Inc. (416) 955-8651 [email protected]

Leah Gaucher, Director, PR & Communication, OverActive Media (647) 924-2614 [email protected]

VIA OVERACTIVE MEDIA

OverActive Media (TSXV: OAM) (OTCQB: OAMCF) is headquartered in Toronto, Ontario, with offices in Madrid, Spain and Berlin, Germany. OverActive’s mandate is to build an integrated global company delivering sports, media and entertainment products to today’s generation of fans with a focus on esports, video games, content creation and distribution, culture, and live and online events. OverActive owns team franchises in (i) the Overwatch League, which trades as Toronto Defiant, (ii) the Call of Duty League, which trades as Toronto Ultra, (iii) the League of Legends European Championship (“LEC”), the as the MAD Lions, (iv) the Super League trading as MAD Lions Madrid, and (v) Flashpoint trading as MAD Lions Counter Strike: Global Offensive (a franchise league operated by B Site Inc., a Company in which OverActive has a minority interest) as well as other unaffiliated CS: GO tournaments and leagues. OverActive also runs live and online events, operates as OAM Live and maintains an active social media presence with its fans and community members, runs fan clubs and other fan-related activities that increase the reach of its brands.

CAUTION ON FORWARD-LOOKING INFORMATION

This press release contains statements that constitute “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”), including statements regarding OverActive’s plans, intentions, beliefs and current expectations for future business operational performance. Forward-looking statements are often accompanied by the words “could”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information about OverActive’s expected financial and operational results in the future.

Investors are cautioned that forward-looking statements are not based on historical facts, but instead are based on OverActive’s management’s expectations, estimates or projections of future results or events based on management’s opinions, beliefs and estimates as of the date of the Publication of the statements were deemed appropriate. Although OverActive believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties and should not be relied upon because unknown or unforeseeable factors could have a material adverse effect on future results, Achievements or accomplishments from the OverActive. Key factors that could cause actual results to differ materially from those projected in any forward-looking statement include the following: The potential impact of OverActive’s Qualifying Transaction on relationships, including with regulators, employees, suppliers, customers and competitors ; Changes in general economic, business and political conditions, including changes in financial markets; Changes in applicable laws and regulations, both locally and in foreign jurisdictions; Compliance with comprehensive government regulations; the risks and uncertainties associated with foreign markets; and other risk factors listed in OverActive’s filing notice dated November 17, 2021. You can find a copy of this on OverActive’s profile at www.sedar.com. These forward-looking statements can be influenced by risks and uncertainties in OverActive’s business and general market conditions, including COVID-19.

Should one or more of these risks or uncertainties materialize or should the assumptions underlying the forward-looking statements prove to be incorrect, the actual results may differ materially from the intended, planned, expected, assumed, estimated or expected results described herein. While OverActive has attempted to identify important risks, uncertainties, and factors that could cause actual results to differ materially, there are others that could cause results not to be as expected, estimated or intended and such changes can be essential. OverActive does not intend or undertake any obligation to update the forward-looking statements unless otherwise required under applicable law.

NON-IFRS MEASURES

This press release contains references to Adjusted EBITDA. Adjusted EBITDA is a non-IFRS financial measure and is measured by the company as net profit or loss before income taxes, finance costs, depreciation and amortization, decrease / increase in net present value of franchise obligations, currency gains / losses, auxiliary payments. defined from Franchise League and government support, restructuring costs, reverse acquisition costs, impairment losses on intangible assets and share-based payments. We believe Adjusted EBITDA is a useful measure of financial performance as it gives an indication of the company’s ability to capitalize on growth opportunities in a cost-effective manner, fund its ongoing operations, and meet its financial commitments.

This non-IFRS financial indicator is not a recognized earnings or cash flow indicator under IFRS and has no standardized meaning as prescribed by IFRS. Our method of calculating such a financial measure may differ from the methods used by other issuers and accordingly our definition of this non-IFRS financial measure may not be comparable to similar measures of other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to IFRS net income as performance indicators or to operating cash flows as liquidity and cash flow measures.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

OVERACTIVE MEDIA CORP. Consolidated Abridged Interim Financial Statements (expressed in thousands of Canadian dollars, unaudited) as of September 30, 2021 and December 31, 2020

OVERACTIVE MEDIA CORP. Condensed Interim Consolidated Report of Net Loss and Total Loss (expressed in thousands of Canadian dollars, excluding amounts per share, unaudited)

OVERACTIVE MEDIA CORP. Consolidated Condensed Interim Cash Flow Statement (expressed in thousands of Canadian dollars, unaudited)

For the nine months ended September 30, 2021 and 2020

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