NIP Group (NIPG) Registration Filing summary

Company overview and business model

• Operates as a leading global esports organization with brands Ninjas in Pyjamas and eStar Gaming, fielding teams in 14 titles across Asia, Europe, and South America.

• Business model includes esports teams, talent management, event production, creative studios, and advertising, with a focus on the “esports +” model for diversified revenue.

• Recent expansion includes esports education, digital collectibles, and IP collaborations, aiming to reach 50 educational institutions and 40 IP partnerships by 2025.

• Completed the largest merger in esports history in January 2023, integrating Ninjas in Pyjamas and eStar Gaming.

Financial performance and metrics

• Net revenues grew from $65.8 million in 2022 to $83.7 million in 2023; gross profit increased from $3.7 million to $7.2 million, with margins rising from 5.7% to 8.6%.

• Net loss widened from $6.3 million in 2022 to $13.3 million in 2023, reflecting increased investments and share-based compensation.

• Adjusted EBITDA was negative $1.7 million in 2023, compared to negative $648,000 in 2022.

• Cash and cash equivalents were $7.6 million as of December 31, 2023; total assets $313.8 million, total liabilities $61.1 million, and mezzanine equity $322.5 million.

Use of proceeds and capital allocation

• Estimated net proceeds of $16.24 million (at $10.00/ADS midpoint), with 50% for strategic acquisitions/investments, 30% for marketing and fan base growth, 20% for expanding esports teams, talent management, and event production, and the remainder for working capital.

• Proceeds may be invested in short-term, interest-bearing instruments pending use.