The share price of Esports Mogul Ltd [ASX:ESH] is up 16.67%, trading at 0.7 cents.
The esports company announced today that Kate Vale was joining as a non-executive director.
The announcement wasn’t marked as price sensitive, but it just goes to show how much marquee board appointments can do for small-caps.
Esports Mogul is seeking to advance their Mogul platform.
You can see the weekly ESH share price chart below:
ESH share price potentially breaking out of downtrend
You’d think an esports company would thrive in the current environment and the increased demand for gaming experiences in lockdown.
But the ESH share price was in a long-term downtrend until today, as it threatens to snap the slide.
ESH is in the process of pivoting to an all-online approach.
The appointment of Kate Vale today was clearly greeted with enthusiasm.
Vale brings experience from YouTube, Google, and Spotify — so clearly a strong CV in the tech world.
A quick look at the ESH quarterly
Taking a quick look at the most recent quarterly, a couple things stand out:
- $61,000 in receipts from customers
- Went through $489,000 in operating expenses
- $2.43 million in cash
Now limited receipts might not be the best, but the company says they are managing cash appropriately to ensure it ‘does not need to seek additional funding from equity capital markets for the foreseeable future.’
That being said, a capital raise in the next two quarters would not be out of the question — particularly given the marketing intensive nature of getting esports competitions up and running.
Wrapping your head around the timings of capital raises is particularly important in the small-cap world.
You can find our free report on four well-positioned small-caps here.
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For Money Morning