LONDON, UK: Blue Star Capital plc (AIM: BLU), a prominent investment firm specializing in esports, technology, and related media and gaming sectors, has disclosed its annual financial results for the year concluding on September 30, 2023. The company reported a substantial pretax loss of £6,329,473, a stark increase from the previous year’s £1,301,008.
The considerable deficit is primarily attributed to the devaluation of investments in Dynasty Media & Gaming and Sthaler, coupled with losses from the liquidation of quoted investments. Despite the financial setback, Blue Star Capital has managed to significantly curtail its operating expenses from £517,003 to £201,118.
As of September 30, 2023, the company’s cash reserves stood at £63,158, showing a slight decrease from the preceding period’s £86,575. In the interim, Blue Star Capital maintains a 27.9% stake in SatoshiPay, currently valued at approximately £4.65 million based on the last external fundraising event in 2019. The ongoing sales process for SatoshiPay continues, with updates to be provided to shareholders in due course.
The Net Asset Value (NAV) per share of Blue Star Capital is currently 0.11p. Following the fiscal year’s end, Dynasty Media & Gaming, one of the company’s key investments, decided to merge with Googly. To support Dynasty during this transition, Blue Star Capital contributed US$75,000 to a US$3 million fundraising initiative in November 2023. The Convertible Loan Note issued is set to expire in two years, carries no interest, and is convertible at a 50% discount to the valuation of Dynasty’s forthcoming funding round.
Tony Fabrizi Executive Chairman of Blue Star Capital plc, commented: “The last year was one of considerable disappointment for all those connected with Blue Star. The material and unexpected write down in value in our investment in Dynasty has had a significantly detrimental impact on the Company’s net asset value and this has obviously impacted sentiment towards the Company. Our focus is on securing an attractive offer for our shareholding in SatoshiPay later this year at which point the Board will consult with shareholders over the Company’s future.”
Blue Star Capital plc (“the Company” or “Blue Star”) provides investors with exposure to a portfolio of geographically diverse companies in high-growth, disruptive technology sectors.
During the period, the Company’s Net Asset Value (“NAV”) decreased by 53% to £5,329,347 (2022: £11,414,507) with the Company incurring a pre-tax loss of £6,328,408 (2022: loss £1,301,008). The significant decline in NAV and loss for the year principally reflect the write down of our investments in Dynasty Media & Gaming and Sthaler plus the losses incurred on the realisation of the Company’s quoted investments. The Company ended the year with cash of £63,158 (2022: £86,575).
In September 2022, the Board set out its strategy for the next two years. The key components were to refrain from making any new investments while it sought offers for its shareholdings in SatoshiPay and Dynasty. The Board also advised that, if possible, it would endeavour to manage the business without any further equity raises.
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