Lost in the Sauce: Trump, Cruz, and Gohmert team up to incite election-related violence
Welcome to Lost in the Sauce, keeping you caught up on political and legal news that often gets buried in distractions and theater… or a global health crisis. Housekeeping:
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Election shenanigans
I put the latest info on Trump's phone call to Raffensperger in this comment.
According to experts, Trump’s conduct has potential criminal exposure:
A federal statute makes it a crime when one “knowingly and willfully … attempts to deprive or defraud the residents of a State of a fair and impartially conducted election process, by … the procurement, casting, or tabulation of ballots that are known by the person to be materially false, fictitious, or fraudulent under the laws of the State in which the election is held.” A Georgia statute similarly provides that a “person commits the offense of criminal solicitation to commit election fraud in the first degree when, with intent that another person engage in conduct constituting a felony under this article, he or she solicits, requests, commands, importunes, or otherwise attempts to cause the other person to engage in such conduct.” …The hard part for prosecutors would be proving Trump’s state of mind, because the statutes require proof of knowledge and intent. Prosecutors would have to show that Trump knew that Biden fairly won the election, and Trump was asking for Georgia officials to commit election fraud. And it’s not clear prosecutors could make that case.
At least 12 Republican senators plan to challenge Biden’s Electoral College win on Jan. 6, when Congress is set to officially count the votes. The effort is being led by Sen. Ted Cruz (R-Tex.) and includes Sens. Ron Johnson (R-Wis.), James Lankford (R-Okla.), Steve Daines (R-Mont.), John Kennedy (R-La.), Marsha Blackburn (R-Tenn.), and Mike Braun (R-Ind.), as well as new Senators Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Bill Hagerty (R-Tenn.), and Tommy Tuberville (R-Ala.). Separately, Sen. Josh Hawley (R-Missouri) is pursuing a similar plan.
"Congress should immediately appoint an Electoral Commission, with full investigatory and fact-finding authority, to conduct an emergency 10-day audit of the election returns in the disputed states. Once completed, individual states would evaluate the Commission’s findings and could convene a special legislative session to certify a change in their vote, if needed," the senators said in a joint statement. “Accordingly, we intend to vote on Jan. 6 to reject the electors from disputed states as not ‘regularly given’ and ‘lawfully certified’ (the statutory requisite), unless and until that emergency 10-day audit is completed."
Their plan is not going to succeed in preventing Biden from taking office, as majorities in both the House and the Senate would need to support a challenge against a state’s electoral votes. For an objection to be made, at least one member of both the House and Senate would need to submit it in writing. Then, the House and Senate separately convene to consider the issue. Debate is limited to two hours for each objection. After debate concludes, the House and Senate vote to uphold the objection and throw out the state’s votes. If the majority of the House AND the majority of the Senate does not uphold the objection, the state’s electoral votes are counted as cast.
Vice President Mike Pence’s role is simply to preside over the joint session, opening and presenting the certifications from each state. In his absence, the Senate pro-tempore Sen. Chuck Grassley (R-Iowa) will lead the session. At the end of the process, the presiding officer announces who has won the majority of votes for president and vice president.
The most immediate danger from Trump and Cruz’s doomed election gambit is rightwing terrorism and general violence: Trump, in particular, is inciting his supporters to swarm D.C. on Jan. 6. “JANUARY SIXTH, SEE YOU IN DC!” Trump tweeted last week. Four rightwing rallies are scheduled, including one headlined by George Papadopoulos and Roger Stone. The Proud Boys and other extremists are planning to attend the rallies and may set up an “armed encampment” on the National Mall, according to the Washington Post. On social media platform Parler, the leader of the Proud Boys said that members will be there “incognito” and may “dress in all black” to impersonate leftwing protestors.
Enrique Tarrio: "The ProudBoys will turn out in record numbers on Jan 6th but this time with a twist...We will not be wearing our traditional Black and Yellow. We will be incognito and we will spread across downtown DC in smaller teams."
Rep. Louie Gohmert has more explicitly tried to incite violence, saying the failure of his legal challenge to the election means “you gotta go the streets and be as violent as Antifa and BLM.” (clip)
At the same time, pro-Trump lawyer Lin Wood suggested that Pence could “face execution by firing squad” for “treason” if he doesn’t go along with the attempt to subvert the election.
Obstructing the transition
Biden’s transition director has accused the Office of Management and Budget of stonewalling the incoming administration’s team. OMB Director Russ Vought is not allowing key staff to meet with the transition team to help prepare the president-elect’s first annual spending plan, a move that could delay major proposals. Vought pushed back on the charges, saying that his agency needs to focus on finalizing the Trump administration’s regulations before the president leaves office.
“OMB leadership’s refusal to fully cooperate impairs our ability to identify opportunities to maximize the relief going out to Americans during the pandemic, and it leaves us in the dark as it relates to Covid-related expenditures and critical gaps,” [Biden transition Exec. Dir. Yohannes] Abraham said.
Earlier last week, Biden himself said Trump officials are not cooperating with his team, singling out the Defense Department for obstructing information on crucial national security issues. “Right now, we just aren’t getting all the information that we need from the outgoing administration in key national security areas. It’s nothing short, in my view, of irresponsibility,” Biden said. The Defense Dept. finally scheduled meetings with the incoming team this week, after not briefing the transition for weeks.
The timing of the resumption in meetings is notable because it comes after the one year anniversary of the U.S. assassination of Iranian Maj. Gen. Qassem Soleimani on Jan. 3. NATO officials are reportedly worried about the lack of coordination from the Trump administration: "We need the incoming Biden administration to be fully briefed and ready to deal with these very dangerous issues facing NATO's security."
Sabotaging the Biden Administration
U.S. Agency for Global Media CEO Michael Pack is taking steps to keep control of Radio Free Europe and Radio Free Asia during the Biden administration. As chairman of the boards of Radio Free Europe and Asia, Pack and his fellow members have added binding contractual agreements that will make it impossible to remove him or other pro-Trump allies from the board in the next two years.
In other words, although President-elect Joe Biden has already signaled he intends to replace Pack as CEO of the parent agency soon after taking office in January, Pack would maintain a significant degree of control over the networks.
The State Department is likely to designate Cuba as a state sponsor of terrorism “as an 11th hour effort to create hurdles for the incoming Biden administration.” The label, which requires the approval of Secretary of State Mike Pompeo, would undo a major accomplishment of the Obama administration. To take Cuba back off the list, the Biden team would need to conduct a formal review, a process that might take several months.
Such a designation would impose restrictions on US foreign assistance, a ban on defense exports and sales, certain controls over exports and various financial restrictions. It would also result in penalization against any persons and countries engaging in certain trade activities with Cuba.
The Trump administration has been rushing to finalize a myriad of rules before Biden’s inauguration. Since Election Day, the Trump administration has issued about three to four times as many new regulations as it did during other periods of Trump’s presidency. Rules that haven’t been finalized or taken effect can be suspended by an incoming president, which Biden has said he intends to do. By contrast, rules that are finalized can take months, or even years, to undo.
“As a general rule, it takes at least as much process to undo or modify a rule as it does to put the rule in place,” said Jonathan H. Adler, a professor and an administrative law expert at Case Western Reserve University School of Law. “The Trump administration is magnifying that challenge for the Biden administration.”
Trump loyalists are urging the president to stymie Biden’s efforts to rejoin the Paris climate agreement and the Iran nuclear deal. Sens. Ted Cruz and Lindsey Graham are working to get the agreements submitted to the Senate for ratification, requiring a two-thirds vote, with the goal of failure. While such an outcome wouldn’t prevent Biden from rejoining the accords, Cruz and Graham hope it would make their resurrection more problematic.
A vote against them would signal GOP opposition to the world and, they hope, undermine any unilateral action by Biden to rejoin the agreements. One senior congressional aide told RCP that sending them to die in the Senate “would be the final nail in the coffin.”
Further reading: “Biden To Be Saddled With Trump’s Payroll Tax Deferral Mess,” Forbes. Further reading: Biden will inherit a backlog of tens of thousands of visa requests from the wars in Iraq and Afghanistan — and a bureaucratic tangle that refugee advocates say President Trump ignored or made worse.
Trump money and properties
Manhattan District Attorney Cyrus Vance is employing forensic accounting specialists to examine Trump’s finances and business operations. Vance is looking “for anomalies among a variety of property deals” and trying to determine “whether the president’s company manipulated the value of certain assets to obtain favorable interest rates and tax breaks”.
The analysts hired by Vance probably have already reviewed various bank and mortgage records obtained from Trump’s company as part of the ongoing grand jury investigation, and they could be called on to testify about their findings should the district attorney eventually bring criminal charges
In yet another shady business deal connected to Trump, the United States sold the ambassador’s residence in Israel for more than $67 million. The person who bought the residence is none other than Trump mega-donor Sheldon Adelson. The property only became available due to Trump's controversial decision to relocate the U.S. Embassy from Tel Aviv to contested Jerusalem. Furthermore, State Dept. representatives reportedly lied to Congress about the sale, perhaps to hide that Adelson purposefully overbid.
For now, there is no alternative residence for the ambassador, David Friedman, Trump’s former lawyer, who currently uses a suite at Jerusalem’s King David Hotel or rooms at the former Jerusalem Consulate General when he spends nights in Jerusalem… As a result, the United States appears likely to end up leasing the residence it has owned since 1964 from the GOP-affiliated casino mogul. “It is very strange that we are now paying Sheldon Adelson,” a congressional aide told The Daily Beast. “It is not above board. We have a number of questions. Did they get two independent appraisals? Was it a sweetheart deal? Was Adelson the highest donor? Was there a reason to sell it now?”
Trump’s businesses have taken in $10.5 million of donor money over the course of his presidency. $8.5 million came from the Trump campaign and related entities that Trump controls directly; $2 million came from other Republican candidates and committees. The biggest beneficiary was Trump’s NYC hotel, taking in $3,039,979 over the four years of his presidency, with $891,003 of that in just the final four months of the campaign. Trump’s DC hotel is ramping up room prices and requiring a two-night minimum stay for two key events this month, as the president tries to squeeze more profit out of his office. On Jan. 6, when Congress is set to formally count the votes cast by the Electoral College, room rates are listed at over eight times the price of surrounding dates. Trump is encouraging his supporters to attend a protest of Biden’s win on the 6th. A room during the inauguration costs five times the normal rate, at $2,225 per night. Trump’s Turnberry Resort in Scotland posted a £2.3 million ($3.1 million) loss in 2019, marking the sixth year in a row it has failed to turn a profit under his ownership. Since Trump took over the historic property in 2014, its losses now total nearly £45 million ($61.5 million).
The fact Turnberry remains in the red comes in spite of significant tranches of payments it has received from the US government during Mr Trump’s single term in office… the US Secret Service spent nearly £25,000 to accommodate its agents at the resort during business trips by Mr Trump’s son, Eric, an executive vice-president of the family firm. Since Mr Trump’s election, the property has received close to £300,000 from the Secret Service, US State Department, and US Defence Department
A Florida state lawmaker is calling for Mar-a-Lago to be penalized - and possibly shut down - for flouting coronavirus restrictions during a New Years Eve party. While Trump and the first lady did not attend, son Don Jr., attorney Rudy Giuliani, Rep. Matt Gaetz, and Fox News personality Jeanine Piro were captured on video among the maskless crowd. Guests paid as much as $1,000 for access to the ballroom to be entertained by Vanilla Ice.
State Rep. Omari Hardy: “My constituents are not snowbirds like @DonaldJTrumpJr & @kimguilfoyle. My constituents live here. This is their home, and they're going to have to deal w/ the consequences of a potential super-spreader party at Mar-a-Lago long after Junior & wife leave here on their private jet.”
Are you ready for a Donald J. Trump Airport? According to the Daily Beast, Trump has been asking aides about the process of naming airports after former U.S. presidents. Further reading: “Jared Kushner’s family real estate business wants to raise at least $100 million in capital through Israel’s bond market… Kushner has helped spearhead a series of moves that have been applauded by the conservative pro-Israel community, including moving the U.S. Embassy to Jerusalem from Tel Aviv and recognizing Israeli sovereignty in disputed areas such as the Golan Heights. Kushner also has close ties to Israel’s prime minister, Benjamin Netanyahu.”
Miscellaneous
The Census Bureau missed it’s end-of-year deadline to produce numbers that determine representation in Congress and the Electoral College for the next decade. The agency is working toward Jan. 9 as an internal target date for completing the current stage of processing records. "If we miss Jan. 9, it's hard to envision that we would get apportionment done before inauguration," a Census employee told NPR.
The final timing of the 2020 census results' release could undermine President Trump's efforts to make an unprecedented change to who is counted in key census numbers before leaving office… If the first census results are not ready until after Trump's term ends on Jan. 20, it would be President-elect Joe Biden, not Trump, who would get control of the numbers, which are ultimately handed off to Congress for certification.
Playboy going public: Porn, Gambling, and Cannabis
NEW INFO 5 Results from share redemption are posted. Less than .2% redeemed. Very bullish as investors are showing extreme confidence in the future of PLBY. https://finance.yahoo.com/news/playboy-mountain-crest-acquisition-corp-120000721.html NEW INFO 4 Definitive Agreement to purchase 100% of Lovers brand stores announced 2/1. https://www.streetinsider.com/Corporate+News/Playboy+%28MCAC%29+Confirms+Deal+to+Acquire+Lovers/17892359.html NEW INFO 3 I bought more on the dip today. 5081 total. Price rose AH to $12.38 (2.15%) NEW INFO 2 Here is the full webinar. https://icrinc.zoom.us/rec/play/9GWKdmOYumjWfZuufW3QXpe_FW_g--qeNbg6PnTjTMbnNTgLmCbWjeRFpQga1iPc-elpGap8dnDv8Zww.yD7DjUwuPmapeEdP?continueMode=true&tk=lEYc4F_FkKlgsmCIs6w0gtGHT2kbgVGbUju3cIRBSjk.DQIAAAAV8NK49xZWdldRM2xNSFNQcTBmcE00UzM3bXh3AAAAAAAAAAAAAAAAAAAAAAAAAAAA&uuid=WN_GKWqbHkeSyuWetJmLFkj4g&_x_zm_rtaid=kR45-uuqRE-L65AxLjpbQw.1611967079119.2c054e3d3f8d8e63339273d9175939ed&_x_zm_rhtaid=866 NEW INFO 1 Live merger webinar with PLBY and MCAC on Friday January 29, 2021 at 12:00 NOON EST link below https://mcacquisition.com/investor-relations/press-release-details/2021/Playboy-Enterprises-Inc.-and-Mountain-Crest-Acquisition-Corp-Participate-in-SPACInsider-ICR-Webinar-on-January-29th-at-12pm-ET/default.aspx Playboy going public: Porn, Gambling, and Cannabis !!!WARNING READING AHEAD!!! TL;DR at the end. It will take some time to sort through all the links and read/watch everything, but you should. In the next couple weeks, Mountain Crest Acquisition Corp is taking Playboy public. The existing ticker MCAC will become PLBY. Special purpose acquisition companies have taken private companies public in recent months with great success. I believe this will be no exception. Notably, Playboy is profitable and has skyrocketing revenue going into a transformational growth phase. Porn - First and foremost, let's talk about porn. I know what you guys are thinking. “Porno mags are dead. Why would I want to invest in something like that? I can get porn for free online.” Guess what? You are absolutely right. And that’s exactly why Playboy doesn’t do that anymore. That’s right, they eliminated their print division. And yet they somehow STILL make money from porn that people (see: boomers) pay for on their website through PlayboyTV, Playboy Plus, and iPlayboy. Here’s the thing: Playboy has international, multi-generational name recognition from porn. They have content available in 180 countries. It will be the only publicly traded adult entertainment (porn) company. But that is not where this company is going. It will help support them along the way. You can see every Playboy magazine through iPlayboy if you’re interested. NSFW links below: https://www.playboy.com/ https://www.playboytv.com/ https://www.playboyplus.com/ https://www.iplayboy.com/ Gambling - Some of you might recognize the Playboy brand from gambling trips to places like Las Vegas, Atlantic City, Cancun, London or Macau. They’ve been in the gambling biz for decades through their casinos, clubs, and licensed gaming products. They see the writing on the wall. COVID is accelerating the transition to digital, application based GAMBLING. That’s right. What we are doing on Robinhood with risky options is gambling, and the only reason regulators might give a shit anymore is because we are making too much money. There may be some restrictions put in place, but gambling from your phone on your couch is not going anywhere. More and more states are allowing things like Draftkings, poker, state ‘lottery” apps, hell - even political betting. Michigan and Virginia just ok’d gambling apps. They won’t be the last. This is all from your couch and any 18 year old with a cracked iphone can access it. Wouldn’t it be cool if Playboy was going to do something like that? They’re already working on it. As per CEO Ben Kohn who we will get to later, “...the company’s casino-style digital gaming products with Scientific Games and Microgaming continue to see significant global growth.” Honestly, I stopped researching Scientific Games' sports betting segment when I saw the word ‘omni-channel’. That told me all I needed to know about it’s success. “Our SG Sports™ platform is an enhanced, omni-channel solution for online, self-service and retail fixed odds sports betting – from soccer to tennis, basketball, football, baseball, hockey, motor sports, racing and more.” https://www.scientificgames.com/ https://www.microgaming.co.uk/ “This latter segment has become increasingly enticing for Playboy, and it said last week that it is considering new tie-ups that could include gaming operators like PointsBet and 888Holdings.” https://calvinayre.com/2020/10/05/business/playboys-gaming-ops-could-get-a-boost-from-spac-purchase/ As per their SEC filing: “Significant consumer engagement and spend with Playboy-branded gaming properties around the world, including with leading partners such as Microgaming, Scientific Games, and Caesar’s Entertainment, steers our investment in digital gaming, sports betting and other digital offerings to further support our commercial strategy to expand consumer spend with minimal marginal cost, and gain consumer data to inform go-to-market plans across categories.” https://www.sec.gov/Archives/edgadata/1803914/000110465921005986/tm2034213-12_defm14a.htm#tMDAA1 They are expanding into more areas of gaming/gambling, working with international players in the digital gaming/gambling arena, and a Playboy sportsbook is on the horizon. https://www.playboy.com/read/the-pleasure-of-playing-with-yourself-mobile-gaming-in-the-covid-era Cannabis - If you’ve ever read through a Playboy magazine, you know they’ve had a positive relationship with cannabis for many years. As of September 2020, Playboy has made a major shift into the cannabis space. Too good to be true you say? Check their website. Playboy currently sells a range of CBD products. This is a good sign. Federal hemp products, which these most likely are, can be mailed across state lines and most importantly for a company like Playboy, can operate through a traditional banking institution. CBD products are usually the first step towards the cannabis space for large companies. Playboy didn’t make these products themselves meaning they are working with a processor in the cannabis industry. Another good sign for future expansion. What else do they have for sale? Pipes, grinders, ashtrays, rolling trays, joint holders. Hmm. Ok. So it looks like they want to sell some shit. They probably don’t have an active interest in cannabis right? Think again: https://www.forbes.com/sites/javierhasse/2020/09/24/playboy-gets-serious-about-cannabis-law-reform-advocacy-with-new-partnership-grants/?sh=62f044a65cea “Taking yet another step into the cannabis space, Playboy will be announcing later on Thursday (September, 2020) that it is launching a cannabis law reform and advocacy campaign in partnership with National Organization for the Reform of Marijuana Laws (NORML), Last Prisoner Project, Marijuana Policy Project, the Veterans Cannabis Project, and the Eaze Momentum Program.” “According to information procured exclusively, the three-pronged campaign will focus on calling for federal legalization. The program also includes the creation of a mentorship plan, through which the Playboy Foundation will support entrepreneurs from groups that are underrepresented in the industry.” Remember that CEO Kohn from earlier? He wrote this recently: https://medium.com/naked-open-letters-from-playboy/congress-must-pass-the-more-act-c867c35239ae Seems like he really wants weed to be legal? Hmm wonder why? The writing's on the wall my friends. Playboy wants into the cannabis industry, they are making steps towards this end, and we have favorable conditions for legislative progress. Don’t think branding your own cannabis line is profitable or worthwhile? Tell me why these 41 celebrity millionaires and billionaires are dummies. I’ll wait. https://www.celebstoner.com/news/celebstoner-news/2019/07/12/top-celebrity-cannabis-brands/ Confirmation: I hear you. “This all seems pretty speculative. It would be wildly profitable if they pull this shift off. But how do we really know?” Watch this whole video: https://finance.yahoo.com/video/playboy-ceo-telling-story-female-154907068.html Man - this interview just gets my juices flowing. And highlights one of my favorite reasons for this play. They have so many different business avenues from which a catalyst could appear. I think paying attention, holding shares, and options on these staggered announcements over the next year is the way I am going to go about it. "There's definitely been a shift to direct-to-consumer," he (Kohn) said. "About 50 percent of our revenue today is direct-to-consumer, and that will continue to grow going forward.” “Kohn touted Playboy's portfolio of both digital and consumer products, with casino-style gaming, in particular, serving a crucial role under the company's new business model. Playboy also has its sights on the emerging cannabis market, from CBD products to marijuana products geared toward sexual health and pleasure.” "If THC does become legal in the United States, we have developed certain strains to enhance your sex life that we will launch," Kohn said. https://cheddar.com/media/playboy-goes-public-health-gaming-lifestyle-focus Oh? The CEO actually said it? Ok then. “We have developed certain strains…” They’re already working with growers on strains and genetics? Ok. There are several legal cannabis markets for those products right now, international and stateside. I expect Playboy licensed hemp and THC pre-rolls by EOY. Something like this: https://www.etsy.com/listing/842996758/10-playboy-pre-roll-tubes-limited?ga_order=most_relevant&ga_search_type=all&ga_view_type=gallery&ga_search_query=pre+roll+playboy&ref=sr_gallery-1-2&organic_search_click=1 Maintaining cannabis operations can be costly and a regulatory headache. Playboy’s licensing strategy allows them to pick successful, established partners and sidestep traditional barriers to entry. You know what I like about these new markets? They’re expanding. Worldwide. And they are going to be a bigger deal than they already are with or without Playboy. Who thinks weed and gambling are going away? Too many people like that stuff. These are easy markets. And Playboy is early enough to carve out their spot in each. Fuck it, read this too: https://www.forbes.com/sites/jimosman/2020/10/20/playboy-could-be-the-king-of-spacs-here-are-three-picks/?sh=2e13dcaa3e05 Numbers: You want numbers? I got numbers. As per the company’s most recent SEC filing: “For the year ended December 31, 2019, and the nine months ended September 30, 2020, Playboy’s historical consolidated revenue was $78.1 million and $101.3 million, respectively, historical consolidated net income (loss) was $(23.6) million and $(4.8) million, respectively, and Adjusted EBITDA was $13.1 million and $21.8 million, respectively.” “In the nine months ended September 30, 2020, Playboy’s Licensing segment contributed $44.2 million in revenue and $31.1 million in net income.” “In the ninth months ended September 30, 2020, Playboy’s Direct-to-Consumer segment contributed $40.2 million in revenue and net income of $0.1 million.” “In the nine months ended September 30, 2020, Playboy’s Digital Subscriptions and Content segment contributed $15.4 million in revenue and net income of $7.4 million.” They are profitable across all three of their current business segments. “Playboy’s return to the public markets presents a transformed, streamlined and high-growth business. The Company has over $400 million in cash flows contracted through 2029, sexual wellness products available for sale online and in over 10,000 major retail stores in the US, and a growing variety of clothing and branded lifestyle and digital gaming products.” https://www.sec.gov/Archives/edgadata/1803914/000110465921005986/tm2034213-12_defm14a.htm#tSHCF Growth: Playboy has massive growth in China and massive growth potential in India. “In China, where Playboy has spent more than 25 years building its business, our licensees have an enormous footprint of nearly 2,500 brick and mortar stores and 1,000 ecommerce stores selling high quality, Playboy-branded men’s casual wear, shoes/footwear, sleepwear, swimwear, formal suits, leather & non-leather goods, sweaters, active wear, and accessories. We have achieved significant growth in China licensing revenues over the past several years in partnership with strong licensees and high-quality manufacturers, and we are planning for increased growth through updates to our men’s fashion lines and expansion into adjacent categories in men’s skincare and grooming, sexual wellness, and women’s fashion, a category where recent launches have been well received.” The men’s market in China is about the same size as the entire population of the United States and European Union combined. Playboy is a leading brand in this market. They are expanding into the women’s market too. Did you know CBD toothpaste is huge in China? China loves CBD products and has hemp fields that dwarf those in the US. If Playboy expands their CBD line China it will be huge. Did you know the gambling money in Macau absolutely puts Las Vegas to shame? Technically, it's illegal on the mainland, but in reality, there is a lot of gambling going on in China. https://www.forbes.com/sites/javierhasse/2020/10/19/magic-johnson-and-uncle-buds-cbd-brand-enter-china-via-tmall-partnership/?sh=271776ca411e “In India, Playboy today has a presence through select apparel licensees and hospitality establishments. Consumer research suggests significant growth opportunities in the territory with Playboy’s brand and categories of focus.” “Playboy Enterprises has announced the expansion of its global consumer products business into India as part of a partnership with Jay Jay Iconic Brands, a leading fashion and lifestyle Company in India.” “The Indian market today is dominated by consumers under the age of 35, who represent more than 65 percent of the country’s total population and are driving India’s significant online shopping growth. The Playboy brand’s core values of playfulness and exploration resonate strongly with the expressed desires of today’s younger millennial consumers. For us, Playboy was the perfect fit.” “The Playboy international portfolio has been flourishing for more than 25 years in several South Asian markets such as China and Japan. In particular, it has strategically targeted the millennial and gen-Z audiences across categories such as apparel, footwear, home textiles, eyewear and watches.” https://www.licenseglobal.com/industry-news/playboy-expands-global-footprint-india It looks like they gave COVID the heisman in terms of net damage sustained: “Although Playboy has not suffered any material adverse consequences to date from the COVID-19 pandemic, the business has been impacted both negatively and positively. The remote working and stay-at-home orders resulted in the closure of the London Playboy Club and retail stores of Playboy’s licensees, decreasing licensing revenues in the second quarter, as well as causing supply chain disruption and less efficient product development thereby slowing the launch of new products. However, these negative impacts were offset by an increase in Yandy’s direct-to-consumer sales, which have benefited in part from overall increases in online retail sales so far during the pandemic.” Looks like the positives are long term (Yandy acquisition) and the negatives are temporary (stay-at-home orders). https://www.sec.gov/Archives/edgadata/1803914/000110465921006093/tm213766-1_defa14a.htm This speaks to their ability to maintain a financially solvent company throughout the transition phase to the aforementioned areas. They’d say some fancy shit like “expanded business model to encompass four key revenue streams: Sexual Wellness, Style & Apparel, Gaming & Lifestyle, and Beauty & Grooming.” I hear “we’re just biding our time with these trinkets until those dollar dollar bill y’all markets are fully up and running.” But the truth is these existing revenue streams are profitable, scalable, and rapidly expanding Playboy’s e-commerce segment around the world. "Even in the face of COVID this year, we've been able to grow EBITDA over 100 percent and revenue over 68 percent, and I expect that to accelerate going into 2021," he said. “Playboy is accelerating its growth in company-owned and branded consumer products in attractive and expanding markets in which it has a proven history of brand affinity and consumer spend.” Also in the SEC filing, the Time Frame: “As we detailed in the definitive proxy statement, the SPAC stockholder meeting to vote on the transaction has been set for February 9th, and, subject to stockholder approval and satisfaction of the other closing conditions, we expect to complete the merger and begin trading on NASDAQ under ticker PLBY shortly thereafter,” concluded Kohn. The Players: Suhail “The Whale” Rizvi (HMFIC), Ben “The Bridge” Kohn (CEO), “lil” Suying Liu & “Big” Dong Liu (Young-gun China gang). I encourage you to look these folks up. The real OG here is Suhail Rizvi. He’s from India originally and Chairman of the Board for the new PLBY company. He was an early investor in Twitter, Square, Facebook and others. His firm, Rizvi Traverse, currently invests in Instacart, Pinterest, Snapchat, Playboy, and SpaceX. Maybe you’ve heard of them. “Rizvi, who owns a sprawling three-home compound in Greenwich, Connecticut, and a 1.65-acre estate in Palm Beach, Florida, near Bill Gates and Michael Bloomberg, moved to Iowa Falls when he was five. His father was a professor of psychology at Iowa. Along with his older brother Ashraf, a hedge fund manager, Rizvi graduated from Wharton business school.” “Suhail Rizvi: the 47-year-old 'unsocial' social media baron: When Twitter goes public in the coming weeks (2013), one of the biggest winners will be a 47-year-old financier who guards his secrecy so zealously that he employs a person to take down his Wikipedia entry and scrub his photos from the internet. In IPO, Twitter seeks to be 'anti-FB'” “Prince Alwaleed bin Talal of Saudi Arabia looks like a big Twitter winner. So do the moneyed clients of Jamie Dimon. But as you’ve-got-to-be-joking wealth washed over Twitter on Thursday — a company that didn’t exist eight years ago was worth $31.7 billion after its first day on the stock market — the non-boldface name of the moment is Suhail R. Rizvi. Mr. Rizvi, 47, runs a private investment company that is the largest outside investor in Twitter with a 15.6 percent stake worth $3.8 billion at the end of trading on Thursday (November, 2013). Using a web of connections in the tech industry and in finance, as well as a hearty dose of good timing, he brought many prominent names in at the ground floor, including the Saudi prince and some of JPMorgan’s wealthiest clients.” https://www.nytimes.com/2013/11/08/technology/at-twitter-working-behind-the-scenes-toward-a-billion-dollar-payday.html Y’all like that Arab money? How about a dude that can call up Saudi Princes and convince them to spend? Funniest shit about I read about him: “Rizvi was able to buy only $100 million in Facebook shortly before its IPO, thus limiting his returns, according to people with knowledge of the matter.” Poor guy :( He should be fine with the 16 million PLBY shares he's going to have though :) Shuhail also has experience in the entertainment industry. He’s invested in companies like SESAC, ICM, and Summit Entertainment. He’s got Hollywood connections to blast this stuff post-merger. And he’s at least partially responsible for that whole Twilight thing. I’m team Edward btw. I really like what Suhail has done so far. He’s lurked in the shadows while Kohn is consolidating the company, trimming the fat, making Playboy profitable, and aiming the ship at modern growing markets. https://www.reuters.com/article/us-twitter-ipo-rizvi-insight/insight-little-known-hollywood-investor-poised-to-score-with-twitter-ipo-idUSBRE9920VW20131003 Ben “The Bridge” Kohn is an interesting guy. He’s the connection between Rizvi Traverse and Playboy. He’s both CEO of Playboy and was previously Managing Partner at Rizvi Traverse. Ben seems to be the voice of the Playboy-Rizvi partnership, which makes sense with Suhail’s privacy concerns. Kohn said this: “Today is a very big day for all of us at Playboy and for all our partners globally. I stepped into the CEO role at Playboy in 2017 because I saw the biggest opportunity of my career. Playboy is a brand and platform that could not be replicated today. It has massive global reach, with more than $3B of global consumer spend and products sold in over 180 countries. Our mission – to create a culture where all people can pursue pleasure – is rooted in our 67-year history and creates a clear focus for our business and role we play in people’s lives, providing them with the products, services and experiences that create a lifestyle of pleasure. We are taking this step into the public markets because the committed capital will enable us to accelerate our product development and go-to-market strategies and to more rapidly build our direct to consumer capabilities,” said Ben Kohn, CEO of Playboy. “Playboy today is a highly profitable commerce business with a total addressable market projected in the trillions of dollars,” Mr. Kohn continued, “We are actively selling into the Sexual Wellness consumer category, projected to be approximately $400 billion in size by 2024, where our recently launched intimacy products have rolled out to more than 10,000 stores at major US retailers in the United States. Combined with our owned & operated ecommerce Sexual Wellness initiatives, the category will contribute more than 40% of our revenue this year. In our Apparel and Beauty categories, our collaborations with high-end fashion brands including Missguided and PacSun are projected to achieve over $50M in retail sales across the US and UK this year, our leading men’s apparel lines in China expanded to nearly 2500 brick and mortar stores and almost 1000 digital stores, and our new men’s and women’s fragrance line recently launched in Europe. In Gaming, our casino-style digital gaming products with Scientific Games and Microgaming continue to see significant global growth. Our product strategy is informed by years of consumer data as we actively expand from a purely licensing model into owning and operating key high-growth product lines focused on driving profitability and consumer lifetime value. We are thrilled about the future of Playboy. Our foundation has been set to drive further growth and margin, and with the committed capital from this transaction and our more than $180M in NOLs, we will take advantage of the opportunity in front of us, building to our goal of $100M of adjusted EBITDA in 2025.” https://www.businesswire.com/news/home/20201001005404/en/Playboy-to-Become-a-Public-Company Also, according to their Form 4s, “Big” Dong Liu and “lil” Suying Liu just loaded up with shares last week. These guys are brothers and seem like the Chinese market connection. They are only 32 & 35 years old. I don’t even know what that means, but it's provocative. https://www.secform4.com/insider-trading/1832415.htm https://finance.yahoo.com/news/mountain-crest-acquisition-corp-ii-002600994.html Y’all like that China money? “Mr. Liu has been the Chief Financial Officer of Dongguan Zhishang Photoelectric Technology Co., Ltd., a regional designer, manufacturer and distributor of LED lights serving commercial customers throughout Southern China since November 2016, at which time he led a syndicate of investments into the firm. Mr. Liu has since overseen the financials of Dongguan Zhishang as well as provided strategic guidance to its board of directors, advising on operational efficiency and cash flow performance. From March 2010 to October 2016, Mr. Liu was the Head of Finance at Feidiao Electrical Group Co., Ltd., a leading Chinese manufacturer of electrical outlets headquartered in Shanghai and with businesses in the greater China region as well as Europe.” Dr. Suying Liu, Chairman and Chief Executive Officer of Mountain Crest Acquisition Corp., commented, “Playboy is a unique and compelling investment opportunity, with one of the world’s largest and most recognized brands, its proven consumer affinity and spend, and its enormous future growth potential in its four product segments and new and existing geographic regions. I am thrilled to be partnering with Ben and his exceptional team to bring his vision to fruition.” https://www.businesswire.com/news/home/20201001005404/en/Playboy-to-Become-a-Public-Company These guys are good. They have a proven track record of success across multiple industries. Connections and money run deep with all of these guys. I don’t think they’re in the game to lose. I was going to write a couple more paragraphs about why you should have a look at this but really the best thing you can do is read this SEC filing from a couple days ago. It explains the situation in far better detail. Specifically, look to page 137 and read through their strategy. Also, look at their ownership percentages and compensation plans including the stock options and their prices. The financials look great, revenue is up 90% Q3, and it looks like a bright future. https://www.sec.gov/Archives/edgadata/1803914/000110465921005986/tm2034213-12_defm14a.htm#tSHCF I’m hesitant to attach this because his position seems short term, but I’m going to with a warning because he does hit on some good points (two are below his link) and he’s got a sizable position in this thing (500k+ on margin, I think). I don’t know this guy but he did look at the same publicly available info and make roughly the same prediction, albeit without the in depth gambling or cannabis mention. You can also search reddit for ‘MCAC’ and very few relevant results come up and none of them even come close to really looking at this thing. https://docs.google.com/document/d/1gOvAd6lebs452hFlWWbxVjQ3VMsjGBkbJeXRwDwIJfM/edit?usp=sharing “Also, before you people start making claims that Playboy is a “boomer” company, STOP RIGHT THERE. This is not a good argument. Simply put. The only thing that matters is Playboy’s name recognition, not their archaic business model which doesn’t even exist anymore as they have completely repurposed their business.” “Imagine not buying $MCAC at a 400M valuation lol. Streetwear department is worth 1B alone imo.” Considering the ridiculous Chinese growth as a lifestyle brand, he’s not wrong. Current Cultural Significance and Meme Value: A year ago I wouldn’t have included this section but the events from the last several weeks (even going back to tsla) have proven that a company’s ability to meme and/or gain social network popularity can have an effect. Tik-tok, Snapchat, Twitch, Reddit, Youtube, Facebook, Twitter. They all have Playboy stuff on them. Kids in middle and highschool know what Playboy is but will likely never see or touch one of the magazines in person. They’ll have a Playboy hoodie though. Crazy huh? A lot like GME, PLBY would hugely benefit from meme-value stock interest to drive engagement towards their new business model while also building strategic coffers. This interest may not directly and/or significantly move the stock price but can generate significant interest from larger players who will. Bull Case: The year is 2025. Playboy is now the world leader pleasure brand. They began by offering Playboy licensed gaming products, including gambling products, direct to consumers through existing names. By 2022, demand has skyrocketed and Playboy has designed and released their own gambling platforms. In 2025, they are also a leading cannabis brand in the United States and Canada with proprietary strains and products geared towards sexual wellness. Cannabis was legalized in the US in 2023 when President Biden got glaucoma but had success with cannabis treatment. He personally pushes for cannabis legalization as he steps out of office after his first term. Playboy has also grown their brand in China and India to multi-billion per year markets. The stock goes up from 11ish to 100ish and everyone makes big gains buying somewhere along the way. Bear Case: The United States does a complete 180 on marijuana and gambling. President Biden overdoses on marijuana in the Lincoln bedroom when his FDs go tits up and he loses a ton of money in his sports book app after the Fighting Blue Hens narrowly lose the National Championship to Bama. Playboy is unable to expand their cannabis and gambling brands but still does well with their worldwide lifestyle brand. They gain and lose some interest in China and India but the markets are too large to ignore them completely. The stock goes up from 11ish to 13ish and everyone makes 15-20% gains. TL;DR: Successful technology/e-commerce investment firm took over Playboy to turn it into a porn, online gambling/gaming, sports book, cannabis company, worldwide lifestyle brand that promotes sexual wellness, vetern access, women-ownership, minority-ownership, and “pleasure for all”. Does a successful online team reinventing an antiquated physical copy giant sound familiar? No options yet, shares only for now. $11.38 per share at time of writing. My guess? $20 by the end of February. $50 by EOY. This is not financial advice. I am not qualified to give financial advice. I’m just sayin’ I would personally use a Playboy sports book app while smoking a Playboy strain specific joint and it would be cool if they did that. Do your own research. You’d probably want to start here: WARNING - POTENTIALLY NSFW - SEXY MODELS AHEAD - no actual nudity though https://s26.q4cdn.com/895475556/files/doc_presentations/Playboy-Craig-Hallum-Conference-Investor-Presentation-11_17_20-compressed.pdf Or here: https://www.mcacquisition.com/investor-relations/default.aspx Jimmy Chill: “Get into any SPAC at $10 or $11 and you are going to make money.” STL;DR: Buy MCAC. MCAC > PLBY couple weeks. Rocketship. Moon. Position: 5000 shares. I will buy short, medium, and long-dated calls once available.
Enthusiast Gaming Holdings Inc. (TO:EGLX) - Building the largest eSports platform
📷DD (New Claims/Info)%22&restrict_sr=1) Enthusiast Gaming is a Canadian digital media company that specialises in video game journalism and esports. It was founded in 2014 by Menashe Kestenbaum, it owns the websites Destructoid and Escapist Magazine, as well the gaming convention Enthusiast Gaming Live Expo. Summary: Enthusiast Gaming is a media company active in the gaming segment. It develops internal brands, acquires websites, partners with influencers and merges with gaming teams to create the leading gaming media company. It is betting that gamers want to consume gaming-related content once they stop playing and the company seeks to corner the off-game experience. It now counts over 300m gamers and generates 4.2B monthly views at an ARPU of $ 0.4. Enthusiast Gaming is acting as the consolidator in the gaming media segment and is driven by the segment’s underlying growth as the esports market is set to grow at over 20% per year over the 2020 - 2025 period. Going forward, it plans to improve its audience’s monetization through subscription services and apps
GAMING MEDIA 🎮
The company engages with a community of 300m monthly gamers through a series of websites, YouTube channels, influencers, events and esports organisations. It generates over 4.2B views each month.
“[…] boosting its reach to a total of 300 million gamers monthly and making it thelargest gaming media platform in North America[…]”Christina Settimi for Forbes
It grows by developing original content and new concepts but also by acquiring competing websites, gaming teams and partnering with influencers. Today, the company disposes of a full-suite of video game outlets:
100 websites (Destructoid, Daily eSports, The Escapist, Nintendo Enthusiasts)
1,000 YouTube Channels (The Squad, Arcade Cloud)
A professional gaming team called Luminosity Gaming (747,000 subscribers on YouTube versus 2.3m for TSM, one of the largest gaming teams)
500 gaming influencers, gamers and content creators
An esports expo gathering 12m online viewers
🕹 FULL EXPERIENCE 🕹 Instead of developing and selling its own games, Enthusiast Gaming’s products are centred around the fan experience. The company is betting that it can deliver value to players by providing the content and media they want to consume. Enthusiast Gaming wants to corner the off-game experience and therefore provides the following possibilities to its users:
Read an article or join a forum on one of their Websites
Watch a YouTube video on one of their Channels
Follow the professional teams
Watch live streamed content from one of their I-influencers on their Twitch Channel
Attend a live or virtual event to connect with other fans and custom activations like tournaments, merchandise, player and celebrities
Going forward, the company wants to become the leading media organisation and social network in gaming.
According to Nielsen, 71% of millennial gamers watch gaming video content (GVC) on platforms like YouTube and Twitch*“In addition to watching GVC* for nearly six hours each week,this highly engaged audience also spends an average of$29 in donations each monthto their favorite content creators.”Nielsen
It doesn’t need to spend money to attract visitors and relies exclusively on organic traffic with $0 spent on SEO and $0 Cost of Acquisition
“If you have a business that requires you to reach Gen Z or millennials,you cannot avoid gaming or us*,”* Enthusiast CEO Adrian Montgomery by Christina Settimi for Forbes“[…]two-thirds of those aged 18 to 34are playingvideo games every monthand that,when they aren’t gaming, they’re watching gaming*—figures backed by Nielsen.”* Christina Settimi for Forbes“[…]two in three U.S. Millennials now playing every month.Brands and media companies should add gaming to their media plans so theyreach a highly engaged Millennial audience*.”* Nielsen
BRAND SAFE PRODUCT FOR TIER-1 PARTNERS ✅
Through its ensemble of brands, it is able to offer a brand safe advertising environment as ads are displayed in a gaming-first environment, minimising the risk of misalignment between page content and the advertiser’s message.
“For theInternet Advertising Bureau(IAB), brand safety is defined askeeping a brand’s reputation safewhen they advertise online. In practice, this meansavoiding placing ads next to inappropriate content.”BannerFlow
Through its focus on gaming, Enthusiast Gaming is able to provide the brand safe environment advertisers look for when they want to reach the millennial and Gen Z cohort. Enthusiast Gaming is then able to leverage its media advertising, custom content, esports sponsorships and influencer marketing to fulfil its partner goals. This leads TIER-1 companies interested in Enthusiast Gaming’s audience to advertise with them:
Amazon Studios
Snapchat
Twitch
Tik Tok
Gillette
Nintendo
The company recently signed adeal with Samsungto provide them with product placement and promotional activity with its influencers. Samsung will sponsor the Luminosity Gaming team and the Enthusiast Gaming expo.
“We are thrilled to announceSamsung as an Enthusiast gaming partnerand to work with them across oursuite of integrated media*, esports and entertainment assets to* create awarenessand drive share for their leading PC offerings, exclusively designed for gamers.”Enthusiast CEO Adrian Montgomery from Gaming Street
MAKING MONEY 💸
The company generates only 6% of its sales from esports and makes the bulk of its revenue from advertising contracts. In 2020, the company is expected to make $ 95m in sales which include $ 61m in revenue that is has to redistribute to its content creators. Enthusiast Gaming has a 5-steps growth plan that is meant to create value by growing their audience while growing their Average Revenue Per User (ARPU) by selling subscriptions, licenses and apps.
Build Scale / Own the Fan Experience (ARPU of $ 0.4)
Enthusiast Gaming grew its audience to 300m gamers through its network of influencers, websites and live events
Monetise through Advertising (ARPU of $ 1)
The company monetised its audience exclusively through programmatic ads, which provided low CPMs
It now seeks to optimise its programmatic ads and boost its advertising revenue through direct sales
Sell Content (ARPU of $ 1.5)
It plans to increase its subscriptions and licensing revenues in order to generate an ARPU of $ 1.5
Today, it already counts 115,000 paying subscribers and is licensing its products to Snap and Samsung
Marketplace (ARPU of $ 2)
It plans to increase its ARPU to $ 2 by launching a marketplace and monetising its apps
Social (ARPU of $ 3)
In the last phase, Enthusiast Gaming plans to reach a $ 3 ARPU by offering social networks features
Omnia Media’s produces over 30 weekly shows across AVOD and OTT channels
It represents over 500 YouTube influencers and counts over 90M unique viewers
Omnia Media’s 2019 sales increased 29% year-on-year and reached $ 59.9m
“The purchase is abargain find for Enthusiast*, which has gobbled up* 12 gaming companies in the last three years*, including paying $20 million for The Sims Resource, one of the largest female gaming destinations. TSR is visited by over 2 million monthly […]”*“Last August,Enthusiast merged with Luminosity Gaming*, the operator of seven esports teams, including the Seattle Surge of the Call of Duty League and the Vancouver Titans of the Overwatch League,* with over 70 million followers.”Christina Settimi for Forbes
THE MARKET 🌐
The esports market is growing at over 20% per year over the 2020 - 2025 period, driven by increasing smartphone penetration, a reduction in the price of mobile internet and innovations such as cloud gaming.
Driven by the growing popularity of esports on a global level and increasing game publishers support
According to Global Data, the video games market could reach $ 300B by 2025 up from $ 131B in 2018
Driven by the advent of mobile gaming, cloud gaming, virtual reality gaming and new payments model (in-game micro-payments) which boost spending*“At the same time, new technologies like 5G, cloud, and virtual reality will usher in a new phase of innovation” - Ed Thomas,* Global Data
Growing by 9.2% a year over the 2020 - 2025 period
Driven by the upgrade cycle in consoles (Sony and Microsoft), the emergence of cloud gaming and the rise of esports
FINANCIAL CHECK 💸
Revenue was $ 16.3m, an increase of 133% compared to $ 7.0m in Q2
Pro forma (including the Omnia Media acquisition) revenue was $ 31.7m for Q3 2020, an increase of 17% compared to $ 27.2m in Q2
Gross margin decreased to 24.8% in Q3 2020 from 65.1% in Q3 2019 and reached $ 4.1m
Pro forma gross margin increased to 16.8% from 16.7% in Q2 and reached $ 5.3m
Operating expenses were $ 8.2m, an increase of 5% from $ 7.8m in Q3 2019
Pro forma operating expenses were $ 9.3m, an increase of 4% compared to $ 8.9m in Q2
Net loss and comprehensive loss for Q3 was $ 8.0m, compared to a loss of $ 16.1m in Q3 2019
Pro forma total views across written and video content were 10.6B for Q3, down from 12.5B in Q2
Company has $ 27.2m in current assets and $22.3m in current liabilities and $ 22m in long-term debt
THE BOTTOM LINE ⚡️
The Good
Enthusiast Gaming is turning itself into the leading media company in the gaming sector
It is doing so by acquiring competitors, partnering with influencers and merging with leading gaming teams
The esports market is growing at a rapid pace and set to double in the coming 5 years, providing the organic market growth Enthusiast Gaming needs
Its one-stop-shop offering enables it to serve TIER-1 customers as Amazon, Snap, Tik Tok and Samsung
The Bad
Gross margins have sharply decreased in the past year and the company is significantly indebted, which may require the company toraise additional cashbefore it reaches profitability
The pandemic gave a boost to the gaming sector but negatively affected esports events, to which Enthusiast Gaming is exposed through its gaming teams and events
Red Light Holland engages in the production, cultivation, and sale of magic truffles to the legalrecreationalmarket in the Netherlands. It sells its products under the iMicrodose brand name through smart shops operators and an advanced e-commerce platform, iMicrodose.nl
In accordance with the highest standards, in compliance with all applicable laws.
Red Light Holland is strategically based in the Netherlands, an area with a long-standing, established legal magic truffles market.
What sets Red Light Holland apart from competition?
Unique approach of recreational market first, medicinal after. The medicinal route requires large amounts of capital and time to acquire the data needed for an FDA approval. Red Light Holland plans to be IN STORES and is currently generating revenue with their iMicrodose product online and in smart shops in Netherlands.
EU GMP Facility Red Light Holland is starting to build out its potential EU-GMP facility which aims to pioneer and lead EU-GMP in the naturally occurring PSILOCYBIN category with the strictest legal compliance measures.
a proposed plan to seek a EU-GMP certification for its production facility in the Netherlands in order to also produce and supply medical grade, EU-GMP certified premium magic truffles within the Netherlands (in addition to a non-EU-GMP grade of premium magic truffles), in a clean room facility.
This is the beginning of entering into the medicinal side of things.
Red Light Holland ‘s management and advisory members are comprised of a core group of highly skilled individuals with the wealth of combined knowledge and experience (relating to growing, mass-producing, compliance, distributing, marketing and managing, etc.) necessary to help fix Red Light Holland as a leader in this early-stage, emerging field.
Todd Shapiro (CEO)
after being a top rated Radio Show host & a brilliant Marketing Entrepreneur with over 20 years of experience, he has recently moved on from mainstream media to concentrate his efforts on being the CEO of Red Light Holland.
Shapiro also has an incredible history as one of North America's most professional & effective Brand Ambassadors and Influencers having worked with Canopy Growth, Samsung, Canada Goose, Canadian Tire & Boveda Inc.
Russell Peters (CCO)
Russell Peters was recently named as one of Rolling Stone’s 50 Best Comics of All Time. He started doing stand-up at the age of nineteen at open mics in his native Toronto, and spent the next fifteen years honing his craft at clubs across Canada and the UK. In 2004, Peters gained critical and global recognition for his CTV “Comedy Now!” special and soon became the first comedian to sell-out Toronto’s Air Canada Centre in 2007. Peters went on to set attendance records at venues from Madison Square Garden to the Sydney Opera House to London’s O2 Arena – where he broke the UK attendance record for highest number of tickets sold for an individual comedy show.
Peters has been awarded Gemini, Peabody, Emmy and Canadian Screen Awards for his hosting, producing and acting talents. His last TV series, the Indian Detective set a Canadian viewership record for Bell Media /CTV in 2017 and was released globally on Netflix.
Hans Derix (President)
Hans is a certified Substance Abuse therapist (APCB) and member of the Association of Addiction Professionals (NAADAC) with over a decade of experience in the field of addiction treatment. He is the founder and managing director of Sensum, Asia’s first and only addiction treatment provider specialized in round-the-clock, one on one, in-home rehab services.
As a founding member of the New Life Foundation and former, senior member of Asia’s largest rehab center the Cabin, Hans has been instrumental in promoting third wave, mindfulness based therapies to the field of addiction recovery in Asia. Hans recognizes the huge potential of natural remedies, including magic truffles, in treating individuals suffering from mental health disorders such as addiction. He is a strong advocate of further, clinical research and his aim is to achieve such with Red Light Holland.
Hans was born and raised in the south of Holland in an area known for its mushroom production. He is very well connected within the Netherlands psychedelia community.
Bruce Linton (Chair of Advisory Board)
Founder & former Chairman, CEO and Co-CEO of Canopy Growth Corporation (CGC) formerly Tweed Marijuana Incorporated, a cannabis company based in Smiths Falls, Ontario, Canada. Bruce founded Tweed in 2013 and renamed it Canopy Growth Corporation in 2015. Canopy Growth Corporation was the first cannabis company in North America to be listed on a major stock exchange (TSX-V in April 2014 and TSX in July 2016) and to be included on a major stock index (S&P/TSX Composite Index in March 2017). Bruce led CGC from a TSX-V listed start-up company with an $80 million market cap to a NYSE/TSX listed company (S&P/TSX60) including more than 30 M&A activities. Ranking number one on the TSX30 with a market cap of over $20 billion by the summer of 2019.
Bruce’s experience as a founder, CEO, and board member across a diversity of sectors was a huge influence for the success of CGC. Earning market support for capital raises of over $6 billion in public capital markets and private placements, the company funded capacity growth and opened new markets, including a $5 billion CAD investment by Fortune 500 beverage company, Constellation Brands (NYSE:STZ).
Why are a radios show host and comedian starting a psychedelic company? Im sure many are wondering why Todd Shapiro and Russell Peters are important factors and why they are management of a psychedelic focused company. The simple answer is they are marketing geniuses. Both Todd and Russell have built a brand out of themselves and have incredible expertise in marketing. Russell Peters has 4M twitter followers, an absolute massive following. Todd has had an extensive career in the radio show business and has his own SiriusXM show. They are targeting the adult recreational market with a small, legal micro dose kit. Marketing this kit will be essential to their success as it needs to be appealing and gain traction within the public audience. Having outside-the-box thinking heads working together to create a uniquely special niche product will prove to be a game changer. "Red Light Holland’s goal is to, over time, help make the relatively unknown ‘magic truffle’ a familiar name across the world. We are currently setting up to grow, distribute and market a premium brand of magic truffles to the legal, recreational market within the Netherlands, and we can't wait to shift the existing paradigm to direct further attention to the legal and responsible use of magic truffles.“ -Todd Shapiro CEO, Red Light Holland Red Light Holland Verticals and Products
Red Light Holland intends to, in the future, establish Scarlette Lillie Science and Innovation, a business segment to supplement its core business. Scarlette Lillie Science and Innovation's goal will be to supply the medical market, with naturally occurring, nonsynthetic psilocybin as current research shows clinical trials are using a synthetic pro-drug compound. Red Light Holland hopes to explore the entourage effect of whole fungi medicine and to establish itself as a pioneering company with the capability to grow medical grade truffles which will potentially help discover more about the entire psilocybin Truffle.
Red Light Holland has developed iMicrodose, a non-synthetic premium truffle microdosing kit to promote responsible use. Microdosing involves taking a much smaller dose on a scheduled routine, compared to that of a recreational dose. The magic truffles are sold in their natural, raw and unprocessed form, and need to be refrigerated prior to use. the iMicrodose kits are currently only available for purchase in the Netherlands.
Red Light Holland has released a line of custom merchandise for supporters and fans to enjoy globally. Merch includes Red Light Holland branded; Toques, fitted hats, trucker hats and baseball jerseys. Most merch items are printed with the company logo, name and ticker symbol ($TRIP) and will be available fo purchase through the company website .
Why is merch important? INSTANT REVENUE. Selling something as simple as merch is an easy stream of income for a company looking to expand. This is something unique about Red Light Holland that almost all other psychedelic comapanies have not done yet.
Financials
Total Common Shares Outstanding (Fully Diluted): 289,923,964
Float: 192.09M
Market Capitalization: $92.37M
Share Price: $0.41
Future Growth The legal psilocybin market is expected to reach$7 billion by 2027. I personally think this is a rather conservative estimate and as we advance in research, we will begin to see the full potential psychedelics could provide to the medical field (PTSD, addiction disorders, anxiety, eating disorders, depression, ADD/ADHD, migraines, etc.) Microdosing is a popular trend and is continuing to gain traction.
Risks The fate of this company lies in the hands of governments around the world to create a legal, recreational marketplace for adult psychedelic use. Although this subject is gaining traction everyday, it will take time and science to prove the worthiness. Luckily, Netherlands recreational truffle market is already legal and operating currently. I have not been able to find the balance sheet and do not know current debt, revenue, or cash-on-hand numbers. As soon as i find that information I plan to add it in an edit. Recent News
Conclusion With Red Light Holland beginning operations in an already legal market, this gives them the ability to establish their brand before going global since their isn't a global market, YET... and Unlike most psychedelic stocks, Red Light Holland does not have to burn cash like crazy up front to fund pre-clinical/clinical trials to acquire the data needed for FDA Approval. Their capital goes directly into marketing their iMicrodose Kit, expanding production capabilities, and potential M&A possibilities. The unique approach this company is taking, along with the strategic assembly of the management and advisory board is why I plan to hold a small position long term 5-10% of my portfolio. My position: 2250 shares @ $0.37 This is not financial advice. Penny stocks are extremely volatile and risky. Only risk what you are willing to lose! Please do not use this DD as conviction, do your own research!
Red Light Holland engages in the production, cultivation, and sale of magic truffles to the legalrecreationalmarket in the Netherlands. It sells its products under the iMicrodose brand name through smart shops operators and an advanced e-commerce platform, iMicrodose.nl
In accordance with the highest standards, in compliance with all applicable laws.
Red Light Holland is strategically based in the Netherlands, an area with a long-standing, established legal magic truffles market.
What sets Red Light Holland apart from competition?
Unique approach of recreational market first, medicinal after. The medicinal route requires large amounts of capital and time to acquire the data needed for an FDA approval. Red Light Holland plans to be IN STORES and is currently generating revenue with their iMicrodose product online and in smart shops in Netherlands.
EU GMP Facility Red Light Holland is starting to build out its potential EU-GMP facility which aims to pioneer and lead EU-GMP in the naturally occurring PSILOCYBIN category with the strictest legal compliance measures.
a proposed plan to seek a EU-GMP certification for its production facility in the Netherlands in order to also produce and supply medical grade, EU-GMP certified premium magic truffles within the Netherlands (in addition to a non-EU-GMP grade of premium magic truffles), in a clean room facility.
This is the beginning of entering into the medicinal side of things.
Red Light Holland ‘s management and advisory members are comprised of a core group of highly skilled individuals with the wealth of combined knowledge and experience (relating to growing, mass-producing, compliance, distributing, marketing and managing, etc.) necessary to help fix Red Light Holland as a leader in this early-stage, emerging field.
Todd Shapiro (CEO)
after being a top rated Radio Show host & a brilliant Marketing Entrepreneur with over 20 years of experience, he has recently moved on from mainstream media to concentrate his efforts on being the CEO of Red Light Holland.
Shapiro also has an incredible history as one of North America's most professional & effective Brand Ambassadors and Influencers having worked with Canopy Growth, Samsung, Canada Goose, Canadian Tire & Boveda Inc.
Russell Peters (CCO)
Russell Peters was recently named as one of Rolling Stone’s 50 Best Comics of All Time. He started doing stand-up at the age of nineteen at open mics in his native Toronto, and spent the next fifteen years honing his craft at clubs across Canada and the UK. In 2004, Peters gained critical and global recognition for his CTV “Comedy Now!” special and soon became the first comedian to sell-out Toronto’s Air Canada Centre in 2007. Peters went on to set attendance records at venues from Madison Square Garden to the Sydney Opera House to London’s O2 Arena – where he broke the UK attendance record for highest number of tickets sold for an individual comedy show.
Peters has been awarded Gemini, Peabody, Emmy and Canadian Screen Awards for his hosting, producing and acting talents. His last TV series, the Indian Detective set a Canadian viewership record for Bell Media /CTV in 2017 and was released globally on Netflix.
Hans Derix (President)
Hans is a certified Substance Abuse therapist (APCB) and member of the Association of Addiction Professionals (NAADAC) with over a decade of experience in the field of addiction treatment. He is the founder and managing director of Sensum, Asia’s first and only addiction treatment provider specialized in round-the-clock, one on one, in-home rehab services.
As a founding member of the New Life Foundation and former, senior member of Asia’s largest rehab center the Cabin, Hans has been instrumental in promoting third wave, mindfulness based therapies to the field of addiction recovery in Asia. Hans recognizes the huge potential of natural remedies, including magic truffles, in treating individuals suffering from mental health disorders such as addiction. He is a strong advocate of further, clinical research and his aim is to achieve such with Red Light Holland.
Hans was born and raised in the south of Holland in an area known for its mushroom production. He is very well connected within the Netherlands psychedelia community.
Bruce Linton (Chair of Advisory Board)
Founder & former Chairman, CEO and Co-CEO of Canopy Growth Corporation (CGC) formerly Tweed Marijuana Incorporated, a cannabis company based in Smiths Falls, Ontario, Canada. Bruce founded Tweed in 2013 and renamed it Canopy Growth Corporation in 2015. Canopy Growth Corporation was the first cannabis company in North America to be listed on a major stock exchange (TSX-V in April 2014 and TSX in July 2016) and to be included on a major stock index (S&P/TSX Composite Index in March 2017). Bruce led CGC from a TSX-V listed start-up company with an $80 million market cap to a NYSE/TSX listed company (S&P/TSX60) including more than 30 M&A activities. Ranking number one on the TSX30 with a market cap of over $20 billion by the summer of 2019.
Bruce’s experience as a founder, CEO, and board member across a diversity of sectors was a huge influence for the success of CGC. Earning market support for capital raises of over $6 billion in public capital markets and private placements, the company funded capacity growth and opened new markets, including a $5 billion CAD investment by Fortune 500 beverage company, Constellation Brands (NYSE:STZ).
Why are a radios show host and comedian starting a psychedelic company? Im sure many are wondering why Todd Shapiro and Russell Peters are important factors and why they are management of a psychedelic focused company. The simple answer is they are marketing geniuses. Both Todd and Russell have built a brand out of themselves and have incredible expertise in marketing. Russell Peters has 4M twitter followers, an absolute massive following. Todd has had an extensive career in the radio show business and has his own SiriusXM show. They are targeting the adult recreational market with a small, legal micro dose kit. Marketing this kit will be essential to their success as it needs to be appealing and gain traction within the public audience. Having outside-the-box thinking heads working together to create a uniquely special niche product will prove to be a game changer. "Red Light Holland’s goal is to, over time, help make the relatively unknown ‘magic truffle’ a familiar name across the world. We are currently setting up to grow, distribute and market a premium brand of magic truffles to the legal, recreational market within the Netherlands, and we can't wait to shift the existing paradigm to direct further attention to the legal and responsible use of magic truffles.“ -Todd Shapiro CEO, Red Light Holland Red Light Holland Verticals and Products
Red Light Holland intends to, in the future, establish Scarlette Lillie Science and Innovation, a business segment to supplement its core business. Scarlette Lillie Science and Innovation's goal will be to supply the medical market, with naturally occurring, nonsynthetic psilocybin as current research shows clinical trials are using a synthetic pro-drug compound. Red Light Holland hopes to explore the entourage effect of whole fungi medicine and to establish itself as a pioneering company with the capability to grow medical grade truffles which will potentially help discover more about the entire psilocybin Truffle.
Red Light Holland has developed iMicrodose, a non-synthetic premium truffle microdosing kit to promote responsible use. Microdosing involves taking a much smaller dose on a scheduled routine, compared to that of a recreational dose. #e magic truffles are sold in their natural, raw and unprocessed form, and need to be refrigerated prior to use. the iMicrodose kits are currently only available for purchase in the Netherlands.
Red Light Holland has released a line of custom merchandise for supporters and fans to enjoy globally. Merch includes Red Light Holland branded; Toques, fitted hats, trucker hats and baseball jerseys. Most merch items are printed with the company logo, name and ticker symbol ($TRIP) and will be available fo purchase through the company website .
Why is merch important? INSTANT REVENUE. Selling something as simple as merch is an easy stream of income for a company looking to expand. This is something unique about Red Light Holland that almost all other psychedelic comapanies have not done yet.
Financials
Total Common Shares Outstanding (Fully Diluted): 289,923,964
Float: 192.09M
Market Capitalization: $92.37M
Share Price: $0.41
Future Growth The legal psilocybin market is expected to reach$7 billion by 2027. I personally think this is a rather conservative estimate and as we advance in research, we will begin to see the full potential psychedelics could provide to the medical field (PTSD, addiction disorder, anxiety, eating disorder, depression, etc.) Microdosing is a popular trend and is continuing to gain traction.
Risks The fate of this company lies in the hands of governments around the world to create a legal, recreational marketplace for adult psychedelic use. Although this subject is gaining traction everyday, it will take time and science to prove the worthiness. Luckily, Netherlands recreational truffle market is already legal and operating currently. I have not been able to find the balance sheet and do not know current debt, revenue, or cash-on-hand numbers. As soon as i find that information I plan to add it in an edit. Recent News
Conclusion With Red Light Holland beginning operations in an already legal market, this gives them the ability to establish their brand before going global since their isn't a global market, YET... and Unlike most psychedelic stocks, Red Light Holland does not have to burn cash like crazy up front to fund pre-clinical/clinical trials to acquire the data needed for FDA Approval. Their capital goes directly into marketing their iMicrodose Kit, expanding production capabilities, and potential M&A possibilities. The unique approach this company is taking, along with the strategic assembly of the management and advisory board is why I plan to hold a small position long term 5-10% of my portfolio. My position: 2250 shares @ $0.37 This is not financial advice. Penny stocks are extremely volatile and risky. Only risk what you are willing to lose! Please do not use this DD as conviction, do your own research!
The CDC has officially recommended ACIP's vaccine distribution plan that deprioritizes the elderly, even though they estimate this will save less lives, in part because more elderly people are white
ACIP is the Advisory Committee on Immunization Practices, an independent committee of experts that makes recommendations regarding vaccines which then become the CDC's own recommendations once the CDC director signs off on them. Here are the slides from the ACIP meeting December 20th, which the CDC director signed off on December 22 to become the CDC's recommendations as seen on their website. This subreddit previously discussed ACIP's recommendations from the November 23rd meeting, see these slides and this explanation regarding them. It placed those 65+ after "essential workers" and in the same priority as those with pre-existing conditions, despite their own estimates this would cost thousands of lives, because of "Ethics" concerns including the fact that those over 65 are more likely to be white. The December 20th revision is more complicated and should result in less unnecessary deaths but still has the same fundamental problem and still explicitly justifies that decision with arguments including (pages 32-34 of the December 20 slides):
Racial and ethnic minority groups under-represented among adults >65
Racial and ethnic minority groups disproportionately represented in many essential industries
~1/4 of essential workers live in low-income families
Increased prevalence of some medical conditions in race/ethnic minority groups & persons in rural areas
The "Evidence Table" linked by the official recommendation on the CDC website uses somewhat different race-based justifications, such as this one:
Adults >65 years of age are a heterogenous population; a strict age-based criterion could inadvertently increase disparities due to racial and social inequities, such as occupation, income, and access to health care.
The new recommendations split essential workers into "frontline essential workers" (30 million people) and other essential workers (57 million people). Note that despite the term "frontline" it includes some very broad categories like "Food & Agriculture" and "Manufacturing". Stage 1b is both "Frontline Essential Workers" and those 75 years or older, while 1c has both those 65-74 years and "Essential workers not recommended in Phase 1b" (like Media, Finance, Legal, and IT). Since the stages are large they will take months to get through. 1a-1c includes almost 2/3 of the U.S. population, we're talking about many 65-74 year olds who happen to get vaccinated in the later part of 1c getting it after the majority of the country. Unlike the November 23 slides, which included (on page 20-21) estimates from their modeling of how many lives the decision would cost, the December 20 slides include no such estimates. However they still admit that prioritizing by age would save more lives (page 23) - they describe the difference as "slight" but they also described it as "minimal" in the November 23 slides which included estimates that came to thousands of additional deaths. They implicitly argue that this is balanced by "slightly more infections" being averted by vaccinating the young, but the only reason to care about non-fatal infections is long-term side effects and they never make any attempt whatsoever to estimate whether the QALY (Quality Adjusted Life Year) loss from those could possibly balance out the QALY loss from thousands of deaths. Instead they leave the decision to "Ethical principles and implementation considerations", and since they estimate the implementation for vaccinating the elderly would actually be easier the deciding factor is "Ethical principles" like the racial demographics of the people they're letting die. This is in contrast to the UK where they're prioritizing very strongly by age, as well as the recommendations from organizations such as the WHO and the National Academy of Sciences. Now, it's possible it's correct to prioritize essential workers or people with preexisting conditions for other reasons. The CDC doesn't even talk about QALYs, just lives. However the UK's modeling did use QALYs and still found that vaccinating by age was best:
Mathematical modelling indicates that the optimal strategy for minimising future deaths or quality adjusted life year (QALY) losses is to offer vaccination to older age groups first
This is despite the elderly obviously having less life-years left, the mortality rate by age is extreme enought to make them the estimated best targets anyway. Their modeling is much less opaque that whatever ACIP is using, and you can read details here. It's also possible that long-term side effects could be common and severe enough to justify such a strategy, however neither the CDC nor anyone else has produced an estimate indicating this. Instead their actual reasoning was that the elderly are more likely to be white so it's preferable if they die, even if it's more deaths overall. State Adoption of Recommendations Now, ultimately these are just recommendations to states and healthcare providers. The only list I've found listing exactly which states have adopted which recommendations is this one from Forbes. According to it as of December 24 (2 days after it became the official CDC recommendation) 3 states have chosen to follow these new recommendations (Alabama, Maine, South Carolina). 15 states are prioritizing essential workers over the elderly entirely, similar to the worse ACIP recommendations from November 23 (Alaska, Arizona, Arkansas, Idaho, Kentucky, Michigan, Nebraska, New Jersey, New York, Virginia, West Virginia, New Hampshire, Vermont, Massachusetts, and Nevada). 3 states have chosen to prioritize by age primarily, the plan that would save as many lives as possible according to every estimate I've seen (Texas, Florida, Hawaii). 16 hadn't announced plans as of December 24 and the others have adopted other plans like sticking seniors and essential workers in a single giant category. However double-checking every state in the first 3 categories I mentioned found that the article was inaccurate about some of them. Hawaii isn't actually prioritizing primarily by age, I'm not sure where he got that. Alaska seems to be following the December 20 guidelines instead, as is Michigan, Kentucky is mixing those 70 and older and certain essential workers, and Vermont is putting those with underlying conditions first and then sticking essential workers and the elderly in one big category. Arizona used to be accurate but December 28 they updated their plan and now put those 75+ ahead of some but not all essential workers, while those 65-74 are still behind all essential workers. Similarly December 28 Utah removed essential workers from their prioritization. If you look at their current timeline they put "certain underlying medical conditions" before those 65-74, so it will depend on some extent on what those end up being. Ironically they're one of the states to explicitly use race-based prioritization, putting "Racial and ethnic groups at higher-risk" second-last before "All Utahns". This seems difficult to justify since from what I've read race-based COVID-19 risk is entirely explainable by other factors like class or obesity, so it would be better-targeted to put some group like essential workers there instead. But since it comes after all the age-based prioritization it shouldn't cost nearly as many lives as the states following either the December 20 or November 23 ACIP recommendations, it's mostly troubling in what it indicates regarding their decision-making. I haven't seen a decent list of which states are explicitly prioritizing by race, there's this Daily Mail article but it doesn't provide links, is from December 19, and makes it sometimes hard to distinguish between the states saying something vague about vaccinating minorities being very important and those with more specific plans. Articles/Blog Posts Note most of these articles are from before the December 20 meeting. Most well-known is the article from the New York Times regarding the November 23 meeting: New York Times: The Elderly vs. Essential Workers: Who Should Get the Coronavirus Vaccine First?
Historically, the committee relied on scientific evidence to inform its decisions. But now the members are weighing social justice concerns as well, noted Lisa A. Prosser, a professor of health policy and decision sciences at the University of Michigan. “To me the issue of ethics is very significant, very important for this country,” Dr. Peter Szilagyi, a committee member and a pediatrics professor at the University of California, Los Angeles, said at the time, “and clearly favors the essential worker group because of the high proportion of minority, low-income and low-education workers among essential workers.”
The NYTimes also gets some quotes from non-CDC experts, like Harald Schmidt:
“Older populations are whiter,” Dr. Schmidt said. “Society is structured in a way that enables them to live longer. Instead of giving additional health benefits to those who already had more of them, we can start to level the playing field a bit.”
To account for the disparity, [Tennessee] state officials are doing something unusual. They are taking a portion of their share of shots off the top and rushing it to places beset by poverty, poor housing and other factors most linked to the pandemic’s disproportionate toll on people of color.
Enthusiast Gaming Holdings Inc. (TO:EGLX) - Building the largest eSports platform - Indefinite Growth
*not a financial advisor - just my personal opinion* Summary: Enthusiast Gaming is a media company active in the gaming segment. It develops internal brands, acquires websites, partners with influencers and merges with gaming teams to create the leading gaming media company. It is betting that gamers want to consume gaming-related content once they stop playing and the company seeks to corner the off-game experience. It now counts over 300m gamers and generates 4.2B monthly views at an ARPU of $ 0.4. Enthusiast Gaming is acting as the consolidator in the gaming media segment and is driven by the segment’s underlying growth as the esports market is set to grow at over 20% per year over the 2020 - 2025 period. Going forward, it plans to improve its audience’s monetization through subscription services and apps
GAMING MEDIA 📷
The company engages with a community of 300m monthly gamers through a series of websites, YouTube channels, influencers, events and esports organisations. It generates over 4.2B views each month.
“[…] boosting its reach to a total of 300 million gamers monthly and making it thelargest gaming media platform in North America[…]”Christina Settimi for Forbes
It grows by developing original content and new concepts but also by acquiring competing websites, gaming teams and partnering with influencers. Today, the company disposes of a full-suite of video game outlets:
100 websites (Destructoid, Daily eSports, The Escapist, Nintendo Enthusiasts)
1,000 YouTube Channels (The Squad, Arcade Cloud)
A professional gaming team called Luminosity Gaming (747,000 subscribers on YouTube versus 2.3m for TSM, one of the largest gaming teams)
500 gaming influencers, gamers and content creators
An esports expo gathering 12m online viewers
📷 FULL EXPERIENCE 📷 Instead of developing and selling its own games, Enthusiast Gaming’s products are centred around the fan experience. The company is betting that it can deliver value to players by providing the content and media they want to consume. Enthusiast Gaming wants to corner the off-game experience and therefore provides the following possibilities to its users:
Read an article or join a forum on one of their Websites
Watch a YouTube video on one of their Channels
Follow the professional teams
Watch live streamed content from one of their I-influencers on their Twitch Channel
Attend a live or virtual event to connect with other fans and custom activations like tournaments, merchandise, player and celebrities
Going forward, the company wants to become the leading media organisation and social network in gaming.
According to Nielsen, 71% of millennial gamers watch gaming video content (GVC) on platforms like YouTube and Twitch*“In addition to watching GVC* for nearly six hours each week,this highly engaged audience also spends an average of$29 in donations each monthto their favorite content creators.”Nielsen
It doesn’t need to spend money to attract visitors and relies exclusively on organic traffic with $0 spent on SEO and $0 Cost of Acquisition
“If you have a business that requires you to reach Gen Z or millennials,you cannot avoid gaming or us*,”* Enthusiast CEO Adrian Montgomery by Christina Settimi for Forbes“[…]two-thirds of those aged 18 to 34are playingvideo games every monthand that,when they aren’t gaming, they’re watching gaming*—figures backed by Nielsen.”* Christina Settimi for Forbes“[…]two in three U.S. Millennials now playing every month.Brands and media companies should add gaming to their media plans so theyreach a highly engaged Millennial audience*.”* Nielsen
Through its ensemble of brands, it is able to offer a brand safe advertising environment as ads are displayed in a gaming-first environment, minimising the risk of misalignment between page content and the advertiser’s message.
“For theInternet Advertising Bureau(IAB), brand safety is defined askeeping a brand’s reputation safewhen they advertise online. In practice, this meansavoiding placing ads next to inappropriate content.”BannerFlow
Through its focus on gaming, Enthusiast Gaming is able to provide the brand safe environment advertisers look for when they want to reach the millennial and Gen Z cohort. Enthusiast Gaming is then able to leverage its media advertising, custom content, esports sponsorships and influencer marketing to fulfil its partner goals. This leads TIER-1 companies interested in Enthusiast Gaming’s audience to advertise with them:
Amazon Studios
Snapchat
Twitch
Tik Tok
Gillette
Nintendo
The company recently signed adeal with Samsungto provide them with product placement and promotional activity with its influencers. Samsung will sponsor the Luminosity Gaming team and the Enthusiast Gaming expo.
“We are thrilled to announceSamsung as an Enthusiast gaming partnerand to work with them across oursuite of integrated media*, esports and entertainment assets to* create awarenessand drive share for their leading PC offerings, exclusively designed for gamers.”Enthusiast CEO Adrian Montgomery from Gaming Street
The company generates only 6% of its sales from esports and makes the bulk of its revenue from advertising contracts. In 2020, the company is expected to make $ 95m in sales which include $ 61m in revenue that is has to redistribute to its content creators.
Enthusiast Gaming has a 5-steps growth plan that is meant to create value by growing their audience while growing their Average Revenue Per User (ARPU) by selling subscriptions, licenses and apps.
Build Scale / Own the Fan Experience (ARPU of $ 0.4)
Enthusiast Gaming grew its audience to 300m gamers through its network of influencers, websites and live events
Monetise through Advertising (ARPU of $ 1)
The company monetised its audience exclusively through programmatic ads, which provided low CPMs
It now seeks to optimise its programmatic ads and boost its advertising revenue through direct sales
Sell Content (ARPU of $ 1.5)
It plans to increase its subscriptions and licensing revenues in order to generate an ARPU of $ 1.5
Today, it already counts 115,000 paying subscribers and is licensing its products to Snap and Samsung
Marketplace (ARPU of $ 2)
It plans to increase its ARPU to $ 2 by launching a marketplace and monetising its apps
Social (ARPU of $ 3)
In the last phase, Enthusiast Gaming plans to reach a $ 3 ARPU by offering social networks features
Omnia Media’s produces over 30 weekly shows across AVOD and OTT channels
It represents over 500 YouTube influencers and counts over 90M unique viewers
Omnia Media’s 2019 sales increased 29% year-on-year and reached $ 59.9m
“The purchase is abargain find for Enthusiast*, which has gobbled up* 12 gaming companies in the last three years*, including paying $20 million for The Sims Resource, one of the largest female gaming destinations. TSR is visited by over 2 million monthly […]”*“Last August,Enthusiast merged with Luminosity Gaming*, the operator of seven esports teams, including the Seattle Surge of the Call of Duty League and the Vancouver Titans of the Overwatch League,* with over 70 million followers.”Christina Settimi for Forbes
6. THE MARKET 📷
The esports market is growing at over 20% per year over the 2020 - 2025 period, driven by increasing smartphone penetration, a reduction in the price of mobile internet and innovations such as cloud gaming.
Driven by the growing popularity of esports on a global level and increasing game publishers support
According to Global Data, the video games market could reach $ 300B by 2025 up from $ 131B in 2018
Driven by the advent of mobile gaming, cloud gaming, virtual reality gaming and new payments model (in-game micro-payments) which boost spending*“At the same time, new technologies like 5G, cloud, and virtual reality will usher in a new phase of innovation” - Ed Thomas,* Global Data
Growing by 9.2% a year over the 2020 - 2025 period
Driven by the upgrade cycle in consoles (Sony and Microsoft), the emergence of cloud gaming and the rise of esports
FINANCIAL CHECK 📷
Revenue was $ 16.3m, an increase of 133% compared to $ 7.0m in Q2
Pro forma (including the Omnia Media acquisition) revenue was $ 31.7m for Q3 2020, an increase of 17% compared to $ 27.2m in Q2
Gross margin decreased to 24.8% in Q3 2020 from 65.1% in Q3 2019 and reached $ 4.1m
Pro forma gross margin increased to 16.8% from 16.7% in Q2 and reached $ 5.3m
Operating expenses were $ 8.2m, an increase of 5% from $ 7.8m in Q3 2019
Pro forma operating expenses were $ 9.3m, an increase of 4% compared to $ 8.9m in Q2
Net loss and comprehensive loss for Q3 was $ 8.0m, compared to a loss of $ 16.1m in Q3 2019
Pro forma total views across written and video content were 10.6B for Q3, down from 12.5B in Q2
Company has $ 27.2m in current assets and $22.3m in current liabilities and $ 22m in long-term debt
7. THE BOTTOM LINE ⚡️
The Good
Enthusiast Gaming is turning itself into the leading media company in the gaming sector
It is doing so by acquiring competitors, partnering with influencers and merging with leading gaming teams
The esports market is growing at a rapid pace and set to double in the coming 5 years, providing the organic market growth Enthusiast Gaming needs
Its one-stop-shop offering enables it to serve TIER-1 customers as Amazon, Snap, Tik Tok and Samsung
The Bad
Gross margins have sharply decreased in the past year and the company is significantly indebted, which may require the company to raise additional cash before it reaches profitability
The pandemic gave a boost to the gaming sector but negatively affected esports events, to which Enthusiast Gaming is exposed through its gaming teams and events
Hip hop stars Roddy Ricch, Lil Baby and Doja Cat are among the entertainment world figures to make the Forbes 30 Under 30 list. Taylor Swift was among the judges for the magazine’s annual list of rising stars in business, science, activism and the arts. It's pretty rare to amass a billion dollars before the age of 30, but the eight youngest people on Forbes World Billionaires list have earned the bragging rights. Five of them inherited the bulk ... Some 11 UK tech entrepreneurs have been honored in this year’s Forbes 30 Under 30 list, featuring 300 young innovators, entrepreneurs and leaders from across Europe. Covering 10 different categories including the arts, entertainment and finance industries, the list includes entrepreneurs vetted by a panel of expert judges in their respective fields. Marvel stars Letitia Wright and Tom Holland are among the UK celebrities named on Forbes magazine's 30 Under 30 Europe list for 2019. It's a list that recognises young talent and is released every ... Cambridge Judge Business School PhD candidate Joe Gladstone has been named in the Forbes 30 Under 30 Europe Finance List 2017, an annual list that selects young “stars” who help shape the world of finance. Cofounder, Lendable; Under 30 Class of 2018 Van Lennep and her team at Lendable remain one of the hottest fintech startups in Europe. In 2019 they agreed on a £200m deal with Goldman Sachs in a ... 10 women in finance and tech make it on Forbes’ top 30 under 30. HR & Management. 10 women in finance and tech make it on Forbes’ top 30 under 30. Alice Yehia - February 5, 2014 September 11, 2016. Share; Share via. Pinterest; LinkedIn ; Copy Link; But who are the ones to have pushed this year’s boundaries of finance and technology and make it onto Forbes’ top? 1. Lucy Baldwin – 29 ... UK and EU restart face-to-face Brexit negotiations in London. Talks were paused last week after an outbreak of COVID-19 in the EU team . Yahoo Finance Canada. B.C. teen makes Forbes' 30 Under 30 list for incredible inventions. Read full article. Tori Floyd · Editor. 4 January 2017, 7:20 am [19-year-old UBC student Ann Makosinski has made Forbes’ annual Top 30 Under 30 list. (CBC)] Each year ... Young entrepreneurs, a golfer, a businessman and a boyband member all with one thing in common – being Irish – have made the Forbes 30 under 30 list of people to watch. Limerick entrepreneurs... Christian Arnstedt (MSc Finance 2010) has been named one of Forbes’ 30 under 30 for Europe in 2018. The prestigious list, compiled by business magazine Forbes, features 300 young visionaries, entrepreneurs and leaders has across a diverse list of categories, including finance, technology and entertainment.
