Victory Square Technologies is incubating the next generation of technology companies

Incubation firm developing tech-focused entrepreneurs Focus on online gaming and sports betting Mission to "live in the future" with its roster of companies What Victory Square Technologies does: Victory Square Technologies Inc (CSE:VST) (OTC:VSQTF) (FRA:6F6) is a technology-focused incubation firm that looks to invest in and develop game-changing entrepreneurs, building toward what it calls the “fourth industrial revolution.” Based in Vancouver, the company provides its investees with access to its education programs, a global network of mentors, distribution partners, creative workspaces, resources and operational support to help them scale internationally. The Victory Square Technologies Portfolio includes: FansUnite, a sports and entertainment company focused on technology related to online sports betting. Its technology includes fixed/parimutuel odds, in-stream betting, live betting, casino-style games, cryptocurrency wallet and news content. GameOn Entertainment Technologies, which delivers sports and entertainment content providers access to what it calls "the world’s simplest and most accessible gamification platform." Whether its clients are TV networks, over-the-top platforms, sportsbooks or leagues, GameOn helps its partners turn their content into interactive and social experiences through mobile and TV apps. Stardust Solar which installs solar PV systems in the US and Canada and touts itself as one of the largest renewable energy education providers in Canada, providing CSA/NABCEP approved design and installation training with hands-on experience. The firm also has over 2,000 certified solar installers in its network and over 100 requests for franchisee licences in Canada. ASPEN, a software company that aims to provide end-to-end digital security and privacy to internet users. ASPEN offers a free VPN software solution and is working to develop an enterprise application related to cybersecurity Immersive Tech, which delivers a blend of video game development, theme park engineering and the latest VR/AR/MR technologies to its roster of global clients to help them with brand engagement, revenue generation and corporate training. With clients like Intel, Ardbeg and Scotiabank, it has executed on projects ranging from brick-and-mortar escape rooms to team-building experiences How is it doing: Victory Square Technologies has continued to make strong progress so far in 2021. On June 1, the incubator filed its first-quarter results, which saw positive net income for a record fifth consecutive period. The company recorded an adjusted net income of more than C$5.1 million and diluted earnings of C$0.05 per share. It ended the quarter with cash and equivalents of more than C$10.1 million on hand.  The company said it expects one of its portfolio companies, Fantasy 360 Technology Inc - doing business as Immersive Tech - to publicly list in 2021. Future investments are planned for additional ventures in electric vehicles, renewable energy, digital asset management, mental health and more sectors, it added.  A day earlier, Victory Square had provided a corporate update for its shareholders reflecting on a successful fiscal 2020, in which the company reported record net income of $19,733,031, or $0.30 per share, representing four consecutive quarters of positive net income and earnings per share. “While 2020 represented an ‘Inflection Point’ in the Victory Square business model, 2021 can be labelled the Harvest,” Victory Square Technologies CEO Shafin Diamond Tejani said in the statement. “Following the successful spin-off of FansUnite in 2020, we’ve got GameOn, Immersive and potentially three more portfolio companies teed up to be spun off in the next 12 months,” Diamond Tejani added.   The company also noted it has seen “significant growth” in 2021 from its other portfolio companies, including Covalent, Hydreight and the recent launch of DiscreetCare.com. On June 8, Victory Square announced that it had finalized its investment in Stardust Solar. Under the terms of the share deal, Victory Square has acquired 20% of Stardust shares in exchange for shares of Victory Square equal to C$600,000, which works out to just over 674,000 shares of VST. In addition, Victory Square agreed to provide Stardust with up to $100,000 in the form of convertible notes that are secured against the resale of Victory Square shares. The company may also assign or dividend up to 15% of its interest in Stardust to Victory Square shareholders. Stardust will retain a right of first refusal to Victory Square with respect to any future financings or listings. Then, in July, Stardust Solar revealed that it has become the first and only coast to coast authorized Canadian dealer of the highly sought after solar and energy services provider, SunPower. As an Authorized SunPower Dealer, Stardust will offer its SunPower solar solutions to residential customers including SunPower’s DC solar panels and InvisiMount mounting hardware for faster installation and design. California-based SunPower has been in the business since 1985 with over 360,000 homeowners using its systems. Victory Square calls SunPower's solar panels the most efficient, durable and best looking available in the industry, supported by one comprehensive warranty. In the same month, portfolio company GameOn Entertainment Technologies announced a partnership with NFT platform Blockparty to launch a first-of-its-kind NFT Predictor product.  Victory Square said the NFT Predictor, spearheaded by Santiago Jaramillo, former Head of Sports at Dapper Labs (NBA Top Shot), enables fans of rights holders, who partner with GameOn to build up their collection by acquiring NFTs -- images, video, or audio -- by either purchasing packs or via a marketplace. The previous month GameOn Entertainment also announced an exclusive partnership with Indian video streaming app MX Player that will introduce cricket prediction games for mobile. The free games will be available to MX Player’s large and diverse user base for domestic and international cricket events, tournaments and leagues, the company said. And in May GameOn Entertainment received approval to list on the Canadian Securities Exchange (CSE) and started trading on under the symbol ‘GET’ at the market open on June 1. Victory Square said it plans to pay out about 12.4% of its holdings in GameOn Entertainment to its shareholders as a special dividend. In May, Vicory Square also provided an update on its wholly-owned portfolio company IV Hydreight Inc, which saw rapid growth in the first quarter of 2021. Since January, Victory Square noted that Hydreight has expanded its product offerings and locations with an additional 30 outlets across the United States. There has been a great demand from potential franchisee partners across the US, the company said, and Hydreight is streamlining the process to continue the rapid growth of its mobile and telehealth business model. New US outlets include New York, Washington DC, Arkansas, Alabama and Nebraska, bringing its state total to 31, and Hydreight expects to be in operation in all 50 states by the end of 2021. In March, Victory Square announced that IV Hydreight Inc and Victory Square Health Inc (VSH) were combining resources to create and expand Telehealth product offerings throughout Brazil. Together, it said, the partnership gives VSH the opportunity to expand upon its successful products through on-demand services, mobile services and cosmetic procedures throughout Brazil and its 213 million residents. And in April portfolio company Fantasy 360 Technologies Inc - dba Immersive Tech  -revealed that was boosting the size of a previously announced financing due to “strong investor demand.”  The offering, consisting of subscription receipts of Immersive, is increasing from the original C$1.5 million, according to a statement.  Each subscription receipt will be sold at C$0.35 and governed by a subscription receipt agreement between Immersive and an escrow agent appointed by Immersive before the closing date of the offering. Immersive plans to use the proceeds from the offering to fund new acquisitions and support its own organic growth, according to Victory Square. Inflection points: $5 million targeted at ventures including EVs and renewables Explore new ventures with Immersive Tech Utilize GameOn’s cash infusion What the boss says: Posting Q1 results on June 1, Victory Square Technologies CEO Shafin Diamond Tejani said: "Q1 2021 was once again an excellent quarter for Victory Square in which we achieved a record fifth consecutive quarter with positive net income and earnings per share, [as well as] demonstrating the power of our diversified portfolio during challenging times. "In addition to closing the acquisition of Hydreight, we closed oversubscribed financings for Fansunite and GameOn, completed a $6 million sale of our software, and issued a share dividend."  “Victory Square focuses on identifying, building and investing in exceptional startups, each led by a strong management team and engaged in global market opportunities,” Tejani added. “With our portfolio companies curated to provide our investors with the best possible exposure to the next generation of technology giants, we are now prioritizing maximal value creation within each venture.” Contact the author at jon.hopkins@proactiveinvestors.com