ST. JULIANS, MALTA–(Newsfile Corp. – December 7, 2022) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLP) (NASDAQ: GMBLW) (NASDAQ: GMBLZ) (“Company” or (“EEG”) today announced that Grant Johnson will step down as Chairman and CEO, effective December 3, 2022. evaluation process. The Company has identified a preferred candidate for Interim/Acting CEO. Pending formal approval by the Nominating and Corporate Governance Committee, we will make a formal announcement in the coming days of nominating this individual. Announced Jan Jones Blackhurst as Chairman of the Board.
“Grant recognized the value of esports and online gambling and founded EEG on that basis. On behalf of the Board, I wish him every success,” said Jones Blackhurst. “We look forward to working with the board to bring in new leadership to help maximize the potential of our acquired esports business.”
Sale and restructuring of the iGaming business
The company has made significant strides in recent months, cutting costs and considering strategic options for iGaming assets that don’t contribute to profits and cash flow. Progress includes:
Sale of our online casino business in Spain. The sale of the online casino business in Spain is expected to close on December 12, 2022. Proceeds from the sale, less fees, will be used primarily to pay down principal on the Senior Convertible Notes.
Argyll iGaming operations in the UK and Ireland will end on December 7, 2022. This is because the operating costs in these markets are high and they are unable to generate profits.
Commencement of the process of evaluating strategic options for the iGaming business, including considering the sale of iGaming assets due to increased regulatory burden and competition. The new CEO will be tasked with assessing the value of iGaming assets and determining next steps.
Other important notices
The company continues to execute its plans to go public on the Nasdaq while restructuring its debt and leveraging its esports assets.
The company announced that it has received approval to continue listing on the Nasdaq. Our continued listing on the Nasdaq must demonstrate compliance with Nasdaq requirements by March 31, 2023.
The Company is in discussions with debt holders to restructure their payment obligations, including, but not limited to, elimination of derivative liabilities in consolidated balances and addressing default conditions. We are optimistic that we will be able to reach an agreement in the near future that will benefit both parties.
We recently received a non-binding letter of consent from a third party offering to integrate assets, including intellectual property, with our assets. The combined company will focus on increasing esports revenue. This proposal is currently under consideration by the Company.
About Esports Entertainment Group
Esports Entertainment Group (NASDAQ: GMBL) (EEG) is a full-service esports and online betting company. EEG focuses on his three areas of gaming, iGaming and technology. EEG Games offers a wide range of services and infrastructure to participate in the global esports and gaming community, including the Esports Gaming League (EGL), which hosts a community of over 350,000 gamers on its proprietary tournament platform EGL.tv. provided to companies. EEG iGaming includes a number of award-winning brands and multinational casino operators covering the wagering needs of traditional online sportsbooks. EEG Technology is building next-generation platforms, features, and services for millennials, Gen Z consumers, and brands looking to connect with these demographics. EEG has offices in New Jersey, Estonia, United Kingdom and Malta. For more information, please visit www.esportsentertainmentgroup.com.
The information contained herein contains forward-looking statements. These statements relate to future events or our future financial performance and are subject to known and unknown risks, uncertainties and our actual results, level of activity, performance or achievements. , along with other factors that may cause the level of performance to differ materially. activities, performance or achievements expressed or implied by these forward-looking statements; Forward-looking statements are subject to known and unknown risks, uncertainties and, in some cases, beyond our control, which may materially affect our actual results, level of activity, and actual impact. undue reliance should not be placed on these statements, as they include other factors that are likely to give performance or achievement. Forward-looking statements reflect our current view of future events and are subject to these and other risks, uncertainties and assumptions relating to our business, results of operations, growth strategy and liquidity. affected by We undertake no obligation to publicly update or revise these forward-looking statements for any reason, even if new information becomes available in the future, or that actual results may not be expected in these forward-looking statements. We undertake no obligation to update reasons that may differ materially from those presented. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for forward-looking statements if they comply with the requirements of the Act.
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