New Risk • Oct 24
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 20% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (34% average weekly change). Negative equity (-CA$2.5m). Minor Risks Shareholders have been diluted in the past year (20% increase in shares outstanding). Revenue is less than US$5m (CA$5.8m revenue, or US$4.2m). Market cap is less than US$100m (CA$18.2m market cap, or US$13.0m). Announcement • Oct 17
ESE Entertainment Inc. announced that it has received CAD 0.75 million in funding On October 16, 2025, ESE Entertainment Inc. closed the transaction. The company issued 3,698,166 common shares at an issue price of CAD 0.06 for gross proceeds of CAD 221,889.96 in its second and final tranche. To date, the company has raised aggregate gross proceeds of CAD 750,000 through the sale of 12,500,000 shares. In connection with the second tranche, the company paid cash commissions of CAD 15,532.30 to certain finders and issued 258,872 non-transferable finder’s warrants. Each finder’s warrant entitles the holder thereof to purchase one share at an exercise price of CAD 0.06 per share for a period of 24 months from the date of issuance. The offering remains subject to final acceptance from the TSX Venture Exchange. All securities issued or issuable in connection with the second tranche will be subject to applicable hold periods imposed under applicable securities legislation, including a hold period of 4 months and one day from the date of issuance. Reported Earnings • Sep 25
Third quarter 2025 earnings released: CA$0.005 loss per share (vs CA$0.016 loss in 3Q 2024) Third quarter 2025 results: CA$0.005 loss per share (improved from CA$0.016 loss in 3Q 2024). Revenue: CA$3.98m (up 1.6% from 3Q 2024). Net loss: CA$594.3k (loss narrowed 55% from 3Q 2024). Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has fallen by 52% per year, which means it is significantly lagging earnings. 
