Early Equity Plc - Trading Update and Strategic Investment PR Newswire

21 October 2020

Early Equity PLC

(“Early Equity” or “the Company”)

Trading Update and Strategic Investment

Early Equity Plc (AQSE: EEQP), is pleased to provide an update on trading. 

As reported at the time of the Interim Results, the Company’s operations in Malaysia have been adversely affected by Covid-19, which has resulted in lower than expected merchants and sales on the Meihome e-commerce platform and reduced sales of products sourced by Yicom Global Sdn Bhd for sale through Early Infinity Sdn Bhd’s direct sales agents. Malaysia, where Early Equity’s business is primarily operational, announced the reintroduction of movement restriction measures in several areas including the capital city of Kuala Lumpur in a bid to contain the recent spike of COVID-19 cases from 12 October 2020. The Company are working with a life science company that has created a range of seaweed and plant based formulations that benefit human health, being high in vitamins and antioxidants which help boost immune support. We believe these products will be well received in Asia, particularly at this time and expect initial stock to arrive early in 2021. The Company are optimistic that these products will help reinvigorate sales in Malaysia when available and once restrictions are lifted.

Concurrently, the Board have been actively seeking to diversify the Company’s activities and have been exploring opportunities in the UK within sectors that can flourish during and beyond these unprecedented times.  As a first stage in this strategy, the Company has acquired 8,803 ordinary shares in Lotto Studios Limited (“Lotto Studios”), representing 1% of Lotto Studios issued share capital, for the sum of £50,000.

Lotto Studios is a London-based development company formed in December 2018, which licenses major entertainment and sports brands to create lottery, social casino and mobile augmented reality games using regulated third-party lottery and casino platforms. Already the developer of a UK-wide lottery platform, Lotto Studios has recently entered into licenses for three highly popular global TV gameshows, to create exciting and immersive social and real-money games, launching in early 2021. Lotto Studio’s mission is to be the number one choice for rights holders to deliver dynamic and innovative high-yield online games.

Whilst only taking a small initial stake, the Board intends to work actively with the directors of Lotto Studios to maximise the potential of these valuable licenses and explore opportunities to further exploit the intellectual property via Early Equity’s extensive network in South East Asia. Following this initial investment, the Board intends to develop a more formal working relationship and closer collaboration with Lotto Studios and further announcements in this respect will be made in due course.

This announcement contains information which, prior to its disclosure, was inside information for the purposes of Article 7 of EU Regulation 596/2014. 

The directors of Early Equity Plc accept responsibility for this announcement.


Enquiries:

Early Equity Plc
Greg Collier
Tel: +44 (0)7830 182501

Novum Securities Limited
AQSE Corporate Adviser
David Coffman / Daphne Zhang
Tel: +44 (0)207 399 9400


About Early Equity plc:

Early Equity is an e-commerce focused group primarily based in Malaysia whose Ordinary Shares are admitted to trading on the AQSE Growth Market in London with the trading symbol EEQP.