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Exclusive: Esports Entertainment CEO On Stock's 55% Surge: 'Finally Trading At Levels Comparable To Multiples In Our Industry'

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Exclusive: Esports Entertainment CEO On Stock's 55% Surge: 'Finally Trading At Levels Comparable To Multiples In Our Industry'

Small-cap esports and online gaming company Esports Entertainment Group (NASDAQ: GMBL) saw its stock surge Monday on no specific news. The move comes as the company completes several acquisitions after a 2020 uplisting to the Nasdaq.

Monday’s Surge: Benzinga reached out to the company for comment on Monday's market reaction.

"I would say we are finally trading at levels that are comparable to multiples in our industry whereas we have previously been the lowest multiple in the sector," CEO Grant Johnson told Benzinga.

The CEO says the majority of activity could be coming from the rise in multiple or social media chat groups like Robinhood or Reddit.

"So far we haven’t seen anything," he said.

Why GMBL On Esports? Esports Entertainment Group is growing its business through a series of acquisitions and new product launches.

"We operate with a play, watch, bet approach," CEO Grant Johnson told Benzinga’s Jason Raznick on the Jan. 25 edition of "ZingerNation Power Hour."

After uplisting to a major exchange, Johnson said the company focused on acquiring businesses to grow revenue and the addressable market.

Esports Entertainment is planning on launching player vs. player betting in New Jersey around Memorial Day weekend, Johnson said. The company has several New Jersey casinos interested in the company’s technology platform for betting on games.

"All the casinos are trying to figure out how to get millennials," Johnson said on "Power Hour," adding that the company can push people into physical areas with its platform.

The company had nominal revenue before and will now hit $14 million. When it completes the acquisition of Lucky Dino, the company will be closer to $40 million for revenue. The deal to acquire Lucky Dino was done to buy their technology, people and customers, Johnson said.

GMBL Price Action: Shares of Esports Entertainment closed Monday's session up 55% to $11.98.

 

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