TGS Esports

TGS Esports (TGS) is a Canadian esports company that operates esports gaming centers and tournament management. TGS owns Canada’s first esports arena, The Gaming Stadium (opened in 2019), where it hosts esports leagues, tournaments, and events. The company raised CAD 1.6 million (approximately USD 1.2 million) while listing on the Toronto Venture Exchange in August 2020. It announced the launch of TGS Mexico in February 2021 to cater to its growing customer base in Central America by setting up esports tournaments and events in the country. TGS Esports also launched a development program, The Collegiate Championship Series, with Wilfrid Laurier University, the University of Canada West, and La Salle College in July 2021.

TGS announced the acquisition of esports tournament platform Pepper Esports (PE) for approximately USD 6 million in November 2020 . The acquisition provided TGS with an additional revenue stream. Other announced acquisitions include Volcanic Media, a Canadian grassroots esports startup, fighting tournament organizer, Even Matchup Gaming (EMG) in April 2021 for CAD 1.1 million (USD 900,000). The acquisition of Pepper Esports is expected to drive around 200,000 new users to TGS’s tournament platform.

In February 2021, TGS Esports signed a non-binding letter of intent with subsidiaries of an arm’s length entertainment, travel, and media company, which would result in a reverse takeover of TGS. The subsidiaries of the undisclosed media company operate a digital business ecosystem and specialize in in-game advertising and monetization. It also announced an asset purchase agreement with Canadian esports company Lazarus Esports in February 2023 . Under the agreement, TGS expects to acquire all of Lazarus' intellectual property and assets and retain some of the organization's staff including Charlie Watson (CEO), Nick Rhoades (director of talent), and Tyler Johnston (marketing manager). The financial details of the purchase were not revealed.

Funding and Financials

TGS Esports reported an adjusted EPS loss of CAD 0.02 for Q3 FY2020. TGS Esports’ revenue grew by 235% YoY to around CAD 74,000 (approximately USD 59,000), while gross profits amounted to around CAD 60,000 (approximately USD 50,000). Sponsorship rose almost 10x due to base effects to around CAD 36,000 (approximately USD 30,000). However, tournament income declined by 26% YoY in Q3 2020 most likely due to the cancellation of in-person events.

In January 2023 , TGS signed a non-binding agreement to be purchased by gaming and entertainment firm Midnight GamingThe agreement involved Midnight buying all of TGS's outstanding shares and the estimated value of TGS's total assets is around USD 13.9 million.