Why Did The Engine Gaming (GAME) Stock Rise In Extended Trading?

In an after-hours session on Thursday, Engine Gaming and Media Inc. (NASDAQ: GAME) shares rose 6.43% at $1.49 after it entered into a significant deal.

What agreement has GAME signed?

This past Wednesday, Engine Gaming (GAME) disclosed that the company has signed agreements exchanging shares for debt. Engine Gaming has agreed to pay $305,137 to satisfy the outstanding principal balance and accrued but unpaid interest payments on a number of the Company’s unsecured convertible debentures.

It is planned to issue the arm’s length creditor a total of 200,000 Common Shares at a presumed price of $1.525 per Common Share. The TSX Venture Exchange will issue the Common Shares upon its approval.

Also, GAME has promised to fully resolve an ongoing legal dispute with a third party with which it has no business ties by issuing 100,000 common shares. The Common Shares will be distributed upon TSXV approval. GAME has applied a four-month plus one-day hold period for Common Shares issued for debt transactions.

GAME released a crucial report

In its annual report, Engine Gaming (GAME) analyzes the global video game streaming industry. Insights into the industry are provided, as well as the top creators, games, and releases. With platforms like Twitch, YouTube Gaming, and Facebook Gaming, media companies, IP holders, brands, and individual content creators are increasingly using live streaming to deliver long-form live entertainment programming. By using this medium, brands can reach a previously hard-to-reach audience. GAME’s report provides a good overview of the video game streaming industry and its future prospects.

What GAME has observed?

In recent years, live streaming has grown beyond just gaming content, with categories like Sports, ASMR, Crypto, and Just Chatting gaining popularity. This diversification resulted in over 4.2 billion hours of content watched, representing close to 20% of all viewership.

The year 2022 was a breakthrough for content creators, with 6 out of the top 10 peak moments attributed to individual creators, primarily developing their own intellectual property and events. Moreover, non-gaming activations took up five out of six top creator events. Female content creators saw an increase in representation on the Top 1,000 Streamer List across platforms, particularly on YouTube Gaming and Facebook Gaming.

Live streaming across the major platforms reached 29.5B hours watched, down from 2021’s peak levels, driven by declines on Facebook Gaming. Nonetheless, there were new entrants, impactful brand partnerships, and activations among the top 10 most popular games, creator networks, and individual streamers.

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