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HomeNFTThe NFT Gaming Company (NFTG) Launches $7 Million Micro IPO

The NFT Gaming Company (NFTG) Launches $7 Million Micro IPO

Dakku

What is NFT Gaming Company?

Roseland, New Jersey-based NFT Gaming Company (NFTG) was founded to develop unique games and related NFT (Non-Fungible Token) technology to provide unique experiences for game players around the world.

The management team is headed by the chairman CEO Vadim Mats, who has been with the company since 2022 and was previously CFO of DatChat (DATS) and before that, was the CFO of Grand Private Equity, a fintech-focused family office.

The company’s main product in development is Gaxos, which brings gamers, publishers and developers together on the platform to earn rewards and “join other opportunities.”

The platform will initially be built on the Polygon Network (MATIC).

As of June 30, 2022, NFT Gaming has a fair market value investment of $2.1 million as of June 30, 2022 reserved from investors.

The company has not yet booked or earned any revenue, but may sell its platform through digital media and online and offline events.

NFT Gaming Market and Competition

According to the market in 2022 investigation report According to SkyQuest Technology, the global market for NFTs is estimated at $15.7 billion in 2021 and is projected to reach $122 billion by 2028.

This represents a projected CAGR of 34.1% from 2022 to 2028.

The main drivers of this expected growth will be the growing demand for both visual and audio digital artwork, increasing awareness of technology among wider consumer groups, and ease of access to information and purchasing capabilities. It’s a transformation.

However, market growth has been remarkably volatile, with strong growth seen in the summer of 2021 followed by a sharp decline in interest by the summer of 2022.

Major competitors or other industry participants are:

  • coin base

  • high seas

  • Larva Research Institute

  • cloudflare

  • dapper lab

  • binance

  • skill lab

  • others

NFT Gaming IPO Dates and Details

An initial public offering (IPO) date for The NFT Gaming Company has not yet been announced by the company or its underwriters.

(Warning: Compared to more historic stocks, IPOs typically provide less information for investors to review and analyze. Investment in IPO, or immediately after the IPO. Investors are also aware that many IPOs are heavily marketed, that past company performance is no guarantee of future results, and that potential risks may be underestimated. You have to keep that in mind. )

NFT Gaming plans to offer approximately 1.7 million shares at an asking price of $4.15, raising a total of $7 million from its common stock IPO.

Existing shareholders have shown no interest in buying shares at the IPO price.

Assuming a successful IPO, the company’s enterprise value at IPO would be approximately $43.1 million, excluding the impact of the underwriter’s over-allotment option.

The float ratio (excluding underwriters’ over-allotment) to shares outstanding is approximately 13.93%. Figures below 10% are generally considered “low float” stocks and may be subject to significant price fluctuations.

Management has said it will use the net proceeds from the IPO as follows:

Net proceeds from this offering will be used for product development, marketing, working capital and general corporate purposes.

(Source – SEC)

Company roadshow executive presentations are not available.

Regarding pending legal proceedings, management has stated that the company is not currently involved in legal proceedings that have a material adverse effect on its operations or financial condition.

The only listed bookrunner for the IPO is EF Hutton.

How to Invest in Company Stock: 7 Steps (with Pictures)

Investors can purchase shares in the usual way. buy stocks of another publicly traded company or as part of a pre-IPO allocation.

Note: This report is not a recommendation to purchase stocks or other securities. For investors interested in pursuing potential investments after the IPO is complete, the following steps for buying shares may be helpful.

Step 1: Understand your company’s financial history

Although not much public financial information has been released about the company, investors can view the company’s financial history on Form S-1 or F-1 SEC filings (sauce).

Step 2: Evaluate the Company’s Financial Statements

Key financial statements available to listed companies include: Profit and loss statement, Balance sheetWhen cash flow statementThese financial statements help investors to learn about a company’s cash market capitalization structure, cash flow trends, and financial position.

Here is my summary of the company’s recent financial results:

The company’s finances have been non-revenue since its inception, with significant R&D and administrative expenses associated with its platform development efforts.

Free cash flow was negative ($587,536) for the six months ended June 30, 2022.

The company does not currently plan to pay dividends on its common stock and intends to retain future earnings for reinvestment in the company’s growth initiatives.

Step 3: Evaluate company potential relative to investment scope

When evaluating a stock that an investor may purchase, it is important to consider the time horizon and risk tolerance before purchasing the stock. For example, swing he traders may be interested in short-term growth potential, while long-term investors may prioritize strong financial conditions over short-term price action.

Step 4: Choose a broker

Investors who do not yet have a trading account start with choosing a brokerage firm.Commonly used account types for trading stocks include standard brokerage account Or a retirement account like an IRA.

Investors who prefer fee advice can open a trading account with a full-service broker or independent investment advisor. Also, those who want to manage their portfolio at low cost can opt for a discount brokerage firm.

Step 5: Choose your investment size and strategy

An investor who decides to buy stock in a company should consider the number of shares to be purchased and the investment strategy to be adopted for the new position. An investment strategy guides an investor’s holding period and exit strategy.

Many investors choose to buy stocks and hold them for the long term. Examples of basic investment strategies include: swing tradingshort-term trading or investments over a long holding period.

Investors wishing to obtain a pre-IPO allotment of shares at the IPO price will “show interest” to a broker prior to the IPO. Showing interest does not guarantee that an investor will receive a pre-IPO share allotment.

Step 6: Choose your order type

Investors have many options for placing orders to buy stocks, including market orders, limit orders, and stop orders.

  • Market Order: This is the most common type of order placed by retail traders.a market order Execute trades instantly at the best available trade prices.

  • Limit Order: When an investor places a limit order buy limit orderwhich specifies the maximum price paid for the stock.

  • Stop Order: A buy stop order is an order to buy at a specified price (called the stop price), above the current market price. For buy stops, the stop price is lower than the current market price.

Step 7: Submit your transaction

After depositing cash into their accounts, investors can decide on their investment size and order type, submit trades and place orders. If the trade is a market order, it will be immediately filled at the best available market price.

However, if an investor submits a limit or stop order, the investor may have to wait until the stock reaches the target price or stop loss price for the trade to be completed.

Conclusion

NFTG seeks funding from public capital markets to develop its NFT gaming platform and related technology.

The company enjoys strong growth dynamics in the industry as the market opportunity for NFT products and services is large and is expected to grow at a very high rate in the coming years.

EF Hutton is the sole underwriter, and the IPOs it led over the last 12 months have posted negative average returns (68%) since IPO. This is the worst performance for any major underwriter for the period.

The main risks to the company’s outlook are its lack of revenue track record and significant competition in the form of major exchanges and incumbent platforms.

In terms of valuation, management is asking investors to pay out an IPO valued at around $43 million, but with no earnings and an incomplete platform.

While the NFT space has seen impressive growth recently, it has also created very high volatility, with the NFT market currently producing a fraction of the number of users compared to summer 2021.

The stock’s low nominal price, coupled with the company’s focus on the crypto space, may attract volatility-seeking day traders.

However, given the company’s revenue shortfall, an IPO is purely speculative at this stage, pending my opinion on it.

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