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FRISCO, TX - GameSquare Holdings Inc. (NASDAQ:GAME) has teamed up with the manufacturer of 5-hour ENERGY®, Living Essentials, LLC, to introduce a new Fortnite competition called Flavor Wars. The event, which celebrates Fortnite's massive player base, offers a $10,000 cash prize to the winning team.
Flavor Wars taps into the gaming community's preference for interactive brand engagement by incorporating 5-hour ENERGY® into the Fortnite experience. The competition's custom map, created by Zoned, a GameSquare company, features three zones themed around 5-hour ENERGY® Gamer Shot flavors: Apple (NASDAQ:AAPL) Bash, Pineapple Charge, and Rocket Raspberry.
The competition, which began today, will have popular Fortnite streamers CouRage, LEGIQN, and Sparkles_QT lead teams through 12 rounds of the 'Zone Wars' game mode on the custom map. In-game power-ups branded with 5-hour ENERGY® will be available to players to enhance their abilities during the game.
Jeff Sigouin, President and COO of Living Essentials, commented on the initiative, stating that Flavor Wars is designed to fuel gamers' passion and provide a unique competition platform.
The Flavor Wars Unreal Editor for Fortnite (UEFN) map launched today at 10:30 a.m. PST. Gamers can join the competition by searching "Flavor Wars" or using the map code 9664-6397-4487 in the Fortnite search bar. The event is also being streamed on the participating streamers' Twitch channels.
Kyle Hurder, Account Director at Zoned, expressed excitement about the partnership with 5-hour ENERGY® and the opportunity to enhance the Fortnite gaming experience with the Flavor Wars map and Gamer Shots.
This event is part of GameSquare's broader mission to connect brands with younger audiences through gaming and entertainment. The company, supported by investors such as Dallas Cowboys owner Jerry Jones and the Goff family, aims to provide marketing and creative services, data and analytics solutions, and media amplification through its platforms, including FaZe Clan.
The information in this article is based on a press release statement.
In other recent news, GameSquare Holdings, Inc. reported a series of significant developments. The company's subsidiary, Zoned, has secured several new brand partnerships, expected to generate over $3 million in high-margin revenue.
GameSquare also disclosed its preliminary financial results for Q2, expecting a revenue of $27 million. The company's CEO, Justin Kenna, projects a significant uptick in profitability in the latter half of 2024, with anticipated revenue between $55 and $60 million.
GameSquare has also secured a $20 million pre-paid advance from an investment fund managed by Yorkville Advisors Global L.P. This financing agreement follows the company's sale of non-core assets, generating over $36 million in non-dilutive capital. The funds will be used to repay a $5.7 million balance on a senior secured convertible note with King Street Partners LLC.
In other strategic moves, GameSquare sold a 25.5% interest in FaZe Media for $9.5 million. Despite the partial divestiture, GameSquare will retain a 25.5% ownership in FaZe Media. Roth/MKM has maintained its Buy rating on GameSquare, citing the company's strategic financial decisions, which have significantly enhanced shareholder value.
These recent developments underscore GameSquare's strategic initiatives and the company's capability to generate value for its shareholders through calculated financial decisions.
InvestingPro Insights
GameSquare Holdings Inc. (NASDAQ:GAME) has demonstrated a substantial revenue growth over the last twelve months, with an impressive increase of 159.12%. This growth is even more pronounced when looking at the quarterly figures, with the revenue growth for Q1 2023 skyrocketing to 535.41%. These metrics from InvestingPro suggest that the company is rapidly expanding its financial footprint in the market, which may be indicative of the potential success of initiatives like the recently announced Flavor Wars Fortnite competition.
However, the company is facing some financial challenges. According to InvestingPro Tips, GameSquare is quickly burning through cash and analysts do not anticipate the company will be profitable this year. Moreover, the stock has experienced a significant decline over the past week, month, and year, with the price total return falling by 11.48%, 15.62%, and 56.8% respectively.
The current market capitalization stands at a modest $32.74M, reflecting the impact of these challenges on investor sentiment. Additionally, with a negative P/E ratio of -16.95, reflecting a lack of profitability over the last twelve months, investors may exercise caution despite the company's revenue growth.
For those looking to delve deeper into the financial health and future prospects of GameSquare, there are 13 additional InvestingPro Tips available, providing a comprehensive analysis of the company's performance and potential investment opportunities. As GameSquare continues to innovate in the gaming and entertainment space, these insights could prove invaluable for investors considering the company's stock. For a more detailed analysis, visit https://www.investing.com/pro/GAME.
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