Blue Star Capital (AIM: BLU ) said its investee company Dynasty eSports, has won three separate software as a service (“SaaS”) agreements in Q3 2020 worth an aggregate of US$2.8m per annum.
The separate SaaS agreements will see Dynasty provide its white-labelled platform to two esports franchise operators already established in the Middle East and launch a branded Dynasty platform with the region’s largest Telco in three new territories in November 2020.
Blue Star first invested around £0.135m into Dynasty back in November 2019 on a valuation for the company of around £1m and invested a further £0.28m in a the most recent round in May this year, maintain its 13% shareholding.
The most recent valuation, which is based on Dynasty’s most recent over-subscribed fundraise, valued the Company at £10m, placing the Company’s holding at £1.3m whilst it is still carried in Blue's balance sheet at the original £140k.
Investors should also note that the £10m valuation was completed prior to Dynasty winning these SaaS based contracts and entry into the three additional new territories.
Shares in Blue Star Capital have continued rising from 0.07p in April 2020 to open at 0.205p.
Dynasty's first partner platform is now live in Malaysia with a soft launch of its proprietary eSports portal management (“EPM”) platform with the Malaysia eSports Federation.
Furthermore, Dynasty is progressing a number of prospective platform partnerships which it said will ‘make Dynasty profitable at the operating level.’
The Company said it expects to further develop the platform during the fourth quarter of 2020 in order to deliver an enhanced tournament engine and a fully embedded e-commerce gaming shop that includes a partnership with Boost, Malaysia's largest eWallet.
It added that significant promotional and marketing activities are expected to commence later this year.
"Dynasty is making rapid progress and today's update confirms the significant value that's being created,” said Tony Fabrizi, Chief Executive of Blue Star Capital.
He added, “Having secured a landmark contract win in Malaysia in May 2020, management has now secured another major contract in the Middle East and appear confident of continuing this strong progress as their esports platform gains traction internationally.
We remain confident that Dynasty will become a sizable business over the next few years and look forward to updating the market on its progress."
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