Gamer Pakistan Inc. (NASDAQ: GPAK) will become both the first AI-based esports firm to become a listed company in the United States and the first Pakistani company to trade on the National Association of Securities Dealers Automated Quotations Stock Market (NASDAQ).
Last Monday, the company priced its first public offering, selling 1.7 million shares for $4 apiece in order to raise $6.8 million. After the transaction closes, there will be 25.6 million shares outstanding, making the company’s value $102.4 million.
Gamer Pakistan is run by CEO James Knopf, a 58-year-old entertainment sales expert with over 25 years of experience navigating large-scale content distribution partnerships across platforms like TV, web, mobile, and over-the-top, or OTT services. Notably, in 2019, ESPN worked with Knopf and his Pinstripe Entertainment Consulting company to host the first NCAA College Esports Championship, which was shown on ESPN3.
K2 Gamer, in which Gamer Pakistan owns a 90% stake, is its operating platform.
This business produces no money or profit in the meantime. The company’s auditor, Mercurius & Associates LLP, claims the gap casts serious doubt on the organization’s capacity to continue as a going concern.
In order to make up for its revenue shortfall in 2023, GPAK intends to host 12 or more events. The company plans to concentrate on colleges and institutions for the time being, but it hopes to expand into other industries and perhaps look at live sports in the future.
According to GPAK’s prospectus, Pakistan is a market where mobile phone subscriptions have expanded at a breakneck speed, covering almost 80 percent of the population in 2020, up from 0.2 percent in 2000.
In 2022, it is anticipated that 36.8 million individuals in Pakistan will play games, with that figure expected to rise to 50.9 million by 2026. Revenue in the video game business is predicted to be around $208.7 million in 2022 and then $227.4 million by 2026.