Gamer Pakistan Inc. (NASDAQ: GPAK) will become the first Pakistani company to trade on the National Association of Securities Dealers Automated Quotations Stock Market (NASDAQ) and the first AI-based esports entity to become a listed company in the United States.
The company priced its initial public offering last week where it offered 1.7 million shares at $4 each to raise $6.8 million. With 25.6 million shares expected to be outstanding once the deal is completed, the company will be worth $102.4 million.
CEO James Knopf, a 58-year-old entertainment sales professional with more than 25 years of expertise navigating large-scale content distribution partnerships across platforms such as TV, digital, mobile, and over-the-top, or OTT services, leads Gamer Pakistan. Notably, Knopf and his Pinstripe Entertainment Consulting firm collaborated with ESPN in 2019 to host the first NCAA College Esports Championship, which was broadcast on ESPN3.
Gamer Pakistan operates through K2 Gamer, in which it has 90 percent ownership.
Meanwhile, this company generates no profit or revenue. Mercurius & Associates LLP, the company’s auditor, says the shortfall raises substantial doubt about the company’s ability to continue as a going concern.
GPAK plans to organize 12 or more events in 2023 and make up for its revenue shortfall. For the time being, the company intends to focus on colleges and institutions, but it aims to extend to other sectors and even explore live sports in the future.
According to GPAK’s prospectus, Pakistan is a market where mobile phone subscriptions have expanded at a breakneck speed, covering almost 80 percent of the population in 2020, up from 0.2 percent in 2000.
In 2022, it is anticipated that 36.8 million individuals in Pakistan played games, with that figure expected to rise to 50.9 million by 2026. Revenue in the video game business is predicted to be around $208.7 million in 2022 and then $227.4 million by 2026.
Cringe
Not true I think, as NETSOL is the first one.