The Drops, an esports startup based in Canada, will attempt a public listing on the Canadian Securities Exchange (CSE) via a reverse takeover. If successful, it will be the first esports company focused purely on building a competitive esports franchise to be publically traded in Canada – akin to the Toronto Blue Jays going public. Other sports franchises have done this – most notably Manchester United, which trades as MANU on the NYSE and LSE.
Eric Chang, CEO of The Drops, said: “I am excited we have reached this next chapter for The Drops. We think the public market in Canada is a great place to grow our company, and this next step will allow us to move further towards our goal of becoming Canada’s premier esports organization.”
The Drops, headquartered in Vancouver, say they expect the listing process to be completed by the second quarter of this year.
The Canadian markets have several publicly-listed companies currently operating in the esports space, but none that are purely focused on building a competitive esports franchise.
Enthusiast Gaming (EGLX) is an omni-esports company whose properties include digital platforms, events, and esports teams. Another is Torque Gaming (GAME), which focuses on gaming content production, data, esports events and hardware. New Wave Esports (NWES) is an esports investment company with a portfolio of companies that include teams, content, platforms, and software.
The largest institutional investor in The Drops is Bluestar Capital. Derek Lew, the chairman of Bluestar, says the ability to offer shareholders exposure to the world of esports via the public markets in Canada is a great opportunity. “We’ve built a world-class team with the vision of becoming the largest esports brand in Canada on the public markets. This is a great confirmation of Bluestar’s esports investment thesis in this space.”