OverActive Media Secures $1 Million From Chairman-Linked Entity

OverActive Media Corp. has raised 1 million Canadian dollars (US$720,000) through debt financing from an entity controlled by its chairman, Sheldon Pollack, as the Toronto-based esports company works to expand its artificial-intelligence localization technology while absorbing recent competitive setbacks.

The six-month secured promissory note, disclosed Wednesday, carries a 12% annual interest rate and includes 330,000 common share purchase warrants exercisable at C$0.30 (US$0.22) per share for one year. The financing will support working capital and the expansion of ActiveVoices, the company's AI-powered content localization platform unveiled at the China Esports Conference in August.

"This financing gives us the flexibility to aggressively pursue that growth engine while continuing to execute on our disciplined path to profitability," said Chief Executive Adam Adamou. He described ActiveVoices as a potential global platform serving content creators, brands and media partners.

The transaction is classified as a related-party deal under Canadian securities regulations. OverActive invoked valuation and minority-approval exemptions permitted for such arrangements, according to the disclosure.

OverActive Media Faces Esports Setbacks While Expanding AI Platform

The capital infusion comes as OverActive navigates a turbulent period in competitive gaming. Riot Games recently terminated the Valorant Champions Tour partnership slot held by the company's Spanish franchise, Movistar KOI, forcing a team restructuring. The company's Toronto Ultra franchise will continue competing in the Call of Duty League next season.

Despite the setbacks, OverActive reported 26% year-over-year revenue growth in its fiscal second quarter of 2025, accompanied by reduced operating expenses. The company, which operates teams across Toronto, Madrid and Berlin, is attempting to broaden its business model beyond esports franchise ownership into digital media and creator services.

The relatively high interest rate and warrant sweetener suggest OverActive faces constraints in accessing traditional capital markets, though management frames the terms as reflecting confidence in the ActiveVoices platform's growth potential. The company previously held franchises in Blizzard Entertainment's Overwatch League before that competition's dissolution.