Blue Star Capital PLC (LON:BLU), the investing company with a focus on esports, payments, technology and its applications within media and gaming, has provided an update in respect of its esports portfolio as well as its investee companies - The Drops Esports Inc and Diemens Esports PTY Ltd.
The group said that since making its initial £900,000 investment in six esports opportunities in November 2019, Blue Star has invested in total approximately £1,680,000 across seven companies. Follow on investments have been made in Guild Esports PLC, Dynasty eSports Pte Ltd and most recently in FORMATION Esports SaaS.
Based on the current valuation of Guild, which was admitted to the standard segment of the London Stock Exchange's main market on October 2, 2020, and the higher valuation achieved by Dynasty in its subsequent fundraises, Blue Star's esports portfolio is now valued at £3,715,890, showing an unrealised gain of £2,035,890 and an increase of approximately 120%.
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Further to the announcement of January 14, 2020, in which it was announced that The Drops had entered into a letter of intent whereby Fibresources Corporation stated its intention to acquire all of the issued, and to be issued, share capital of The Drops, Blue Star said it has been informed that Fibresources did not complete the acquisition. Blue Star has invested approximately £147,000 in The Drops and holds an interest of 13.6%. in the company.
With regards to Diemens, as per the announcement of February 3, 2020, Diemens announced its intention to merge with Critical Hit Entertainment PTY Ltd. Blue Star, similarly, has been advised by Diemens that the deal with CHE did not complete. Blue Star has invested £133,000 in Diemens and holds an interest of 13.3% in the company.
The company said it awaits updates from its further esport investee companies being Formation, Googly Esports plc and The Dibs Esport Corp and it will update the market further in due course.
In the update, Tony Fabrizi, CEO of Blue Star commented that "the overall performance from our portfolio approach is showing a significant return in year one."
"Although today's news from The Drops and Diemens is disappointing, both companies continue to explore opportunities to build their respective businesses. While the overall performance from our portfolio approach is showing a significant return in year one and while the early-stage nature of our esports portfolio will lead to some disappointments, the Board remains highly optimistic regarding the future performance of the Company's overall portfolio," he added.