UK-based esports organisation Guild Esports has signed a subscription letter with an unnamed esports brand to subscribe for up to 200m new shares, raising up to £1m in the process.
The funds will be used for growth and expansion, notably in the MENA region. Guild did not share the name of the new investor and has noted that the shares will be divided into three segments.
The first segment has already been subscribed to, with the second round expected to occur today (October 30th). The third segment is conditional to a broader partnership between Guild Esports and the new investor.
Interestingly, the identity of the company that is working with Guild Esports on this share subscription was not disclosed. According to Guild, it is an international esports, content creation, and media brand, but no other information is known at this time.
Both the first and second rounds of share subscriptions amount to £250,000 each. The third and last round of shares has no set data. In a release, Guild noted that the company expects a wider commercial agreement between the two parties to take place.
Guild’s Board of Directors noted that it anticipates that both companies will work together and benefit each other’s businesses, partners and audience footprint whilst also creating additional value. Guild Esports will make a further announcement on the possible agreement in due time, along with the news of the potential third round of shares, which amounts to £500,000.
Guild Esports is a publicly traded esports organisation that is currently listed on the London Stock Exchange. Once the transition has been completed Guild Esports will have a total of over 822m shares and voting rights, 200m of which will be from the unnamed esports brand.
The esports organisation also shared that it aims to use the funds to facilitate international expansion and enter new areas, with a strong focus on the MENA region. In a release, Guild’s directors noted that “an immediate foothold in the region” should be a priority.
Jasmine Skee, CEO of Guild Esports, commented: “This subscription marks a significant milestone in Guild’s journey and paves the way for exciting opportunities ahead. There is immense international appetite for esports, particularly in the MENA region which is rapidly emerging as an esports hub.
“The investment is crucial to furthering our vision of becoming the leading international esports and gaming-focused media brand and Guild looks forward to deepening ties with a complementary business.”