Versus Systems Inc (VS)

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VERSUS SYSTEMS INC COM NPV (OTCMKTS:VRSSF) Hits the eSports Landscape Running
Versus Hits the eSports Landscape Running

VERSUS SYSTEMS INC COM NPV (OTCMKTS:VRSSF) is an extremely interesting play that is just starting to get some serious traction and attention among traders on the OTC. The company is a new player in the red hot eSports space, joining staple players such as Electronic Arts Inc. (NASDAQ:EA), Activision Blizzard, Inc. (NASDAQ:ATVI), and TENCENT HLDGS LTD UNSP ADR EACH REP 1 ORD (OTCMKTS:TCEHY). The key recent catalyst driving the action is the company’s announcement that its proprietary prizing platform will be integrated into Valhalla Games Studios International Ltd.’s “Devil’s Third Online”, in development as a free-to-play launch for PC.

According to the company’s release, “The Versus prizing platform allows video game developers and publishers, as well as advertisers and brands, to provide in-game prizing to game players and spectators. Versus takes advantage of an eSports landscape that Deloitte Consulting expects to grow at a 94% CAGR through 2018, as well as an in-game advertising market that could reach over $7.5 Billion annually in the U.S. alone. Versus offers prizes to players based on their in-game achievements and behaviors – prizes including gear, apparel, cash, concert tickets, downloadable content, and more. DLC represents another high-growth opportunity for video games, generating over $30 Billion annually.”

VERSUS SYSTEMS INC COM NPV (OTCMKTS:VRSSF) frames itself as a company developing a software platform that allows video game publishers and developers to offer prize-based matches and tournaments of their games. This proprietary technology is being integrated into select games that are planned to be in market in early 2017.

The company is trading at a current market cap value of $21.6M. VRSSF has an excellent balance sheet situation according to recent filings, with over $1.4 million in cash on the books, balanced by under $200K in total current liabilities.

The company is pre-revenue at this point. But, as noted above, they are actively cultivating some strong potential for monetization.


Direct From the Source

Recent action has seen 78% during the past month in terms of shareholder gains in the name. To frame that action, take a look at the tone of commentary from management in the company’s recent press:

“We are thrilled that ‘Devil’s Third Online’ will be able to provide a totally different type of fun for our game players through our collaboration with Versus,” said Tomonobu Itagaki, Chief Technology Officer of Valhalla Games Studios International Ltd. “DTO players can look forward to reaping real rewards for their skills, including accessories and apparel from Han Cholo; gaming gear and collectibles from Tier 1; cash and more.”

“As evidenced by their work on ‘Dead or Alive’ and ‘Ninja Gaiden’, Valhalla founders Itagaki-san and Kanematsu-san are true pioneers when it comes to online multiplayer and tournament play. Their work is a huge part of the foundation on which today’s competitive eSports space was built,” said Matthew Pierce, CEO of Versus Systems, Inc. “Together, Valhalla and Versus will bring that excitement and prizing opportunity to players at home, expanding the DTO audience and extending the DTO user experience with fresh competitions and a limitless stream of post-launch, downloadable content and prizing.”

Pierce continued, “The Versus prizing platform is a solution for video game publishers and developers, as well as major brands eager to build lasting relationships with the powerful, $100B gaming audience of consumers. We have plans to integrate Versus into multiple video games across multiple genres and game platforms throughout 2017 and beyond.”

There seems to be all sorts of momentum here at the moment. It’s clear that the strategy is to be aggressive with 2017 objectives. That should duly enrich the company’s news flow, providing a stream of coming catalysts, and the potential for more momentum to build in this story. As such, we are going to be keeping a close eye on the name.