Allied Esports Entertainment, Inc. - AGAE STOCK NEWS

Allied Gaming & Entertainment (NASDAQ: AGAE) has successfully concluded its first World Mahjong Tour (WMT) beginner-level tournament at HyperX Arena in Las Vegas on February 2nd. The event drew over 150 participants and featured three rounds of competition, with the top four winners receiving cash prizes.

CEO Yinghua Chen emphasized the event's success in building a connected mahjong community, highlighting the company's commitment to elevating mahjong as a global experience that combines competition, tradition, and entertainment.

The World Mahjong Tour aims to create an inclusive community through themed parties, tournaments, mobile games, and content creation. This inaugural tournament marks the beginning of WMT's expansion plans, with more events scheduled throughout 2025 and beyond.

Allied Gaming & Entertainment (NASDAQ: AGAE) has announced the postponement of its 2024 Annual Meeting of Stockholders, originally scheduled for December 30, 2024. The delay is due to an ongoing lawsuit filed by Knighted Pastures . AGAE claims the lawsuit is an attempt by Knighted and its Managing Partner, Roy Choi, to gain control of the company at a price below its cash value, potentially harming long-term stockholder value. The company cannot currently determine the new meeting date but will update stockholders once it can be rescheduled following the lawsuit's resolution.

Allied Gaming & Entertainment (NASDAQ: AGAE) responds to a derivative lawsuit filed by Knighted Pastures, against the company's directors regarding the Yellow River strategic investment. The company states the lawsuit is without merit and views it as an attempt by Knighted and Roy Choi to gain control at a discounted price. Seven of eight AGAE board members are independent directors who thoroughly vetted the Yellow River transaction. The company previously offered Knighted a board seat, which was rejected in favor of demanding four out of seven board seats. AGAE maintains these actions aim to protect long-term stockholder value while executing announced business strategies.

Allied Gaming & Entertainment (NASDAQ: AGAE) reported Q3 2024 financial results with total revenues of $2.2 million, up 93% year-over-year. The increase was driven by a $0.2 million rise in In-person event revenues at HyperX arena and $0.8 million growth in casual mobile gaming revenues. The company reported a net loss of $4.0 million, primarily due to a $3.0 million settlement with BPR and $1.2 million in unrealized foreign currency losses. HyperX Arena hosted 61 event days, and the company maintained a strong cash position of $80.2 million. AGAE also announced a strategic investment from Yellow River Global Capital to enhance growth opportunities.

Allied Gaming & Entertainment (NASDAQ: AGAE) has announced it will release its third quarter 2024 financial results after market close on Thursday, November 14th. The company will host a conference call at 2:00 p.m. PT / 5:00 p.m. ET on the same day to discuss the results. Investors can join via phone or watch the live webcast on the company's Investor Relations site. A replay will be available until November 28, 2024.

Allied Gaming & Entertainment (NASDAQ: AGAE) has secured a strategic investment from Yellow River Global Capital, comprising $6.6 million for 6 million shares of common stock. Yellow River will also receive warrants to purchase an additional 6 million shares at $1.80 per share over five years. As part of the agreement, Yellow River gained the right to appoint one Class A Director, selecting Zongmin (Philip) Ding, who brings extensive experience from various director and management roles. The partnership aims to enhance AGAE's growth potential in location-based entertainment chains and entertainment content IP acquisition.

Allied Gaming & Entertainment (NASDAQ: AGAE) has responded to recent Schedule 13D filings by stockholders Ourgame International Holdings and Knighted Pastures Ourgame demanded permission to acquire additional shares and amend AGAE's Bylaws, citing a 2018 merger agreement. AGAE's Board rejected these demands, deeming them contrary to the company's and stockholders' interests. Ourgame also recommended two candidates for the Board, which will be reviewed by the Nominating and Corporate Governance Committee.

Knighted Pastures requested AGAE to hold its 2024 Annual Meeting of Stockholders. In compliance with Nasdaq requirements, AGAE plans to hold the meeting by December 31, 2024. The Board reaffirms its commitment to serving the best interests of the company and all stockholders, focusing on AGAE's long-term success.

Allied Gaming & Entertainment (NASDAQ: AGAE) acknowledges a recent filing by shareholder Ourgame International Holdings , which includes a legal letter sent to AGAE's Board of Directors. Ourgame expresses opposition to certain actions taken by AGAE's Board and management, citing concerns over the impact on their interests as a shareholder.

AGAE respects shareholder opinions and is committed to open engagement. While actively responding to the letter's requests, AGAE disagrees with Ourgame's characterization of the Board's recent decisions. The company affirms that its Board has always acted, and will continue to act, in a manner that is transparent, fair, and consistent with its fiduciary duties, prioritizing the best interests of the Company and all shareholders.

Allied Gaming & Entertainment (NASDAQ: AGAE) reported Q2 2024 financial results, showing mixed performance. Total revenues increased 11% quarter-over-quarter to $2.6 million but decreased 19% year-over-year. The company announced the launch of the World Mahjong Tour, set to debut in spring 2025. Net loss for Q2 2024 was $3.9 million, compared to a $0.7 million loss in the prior year period. Adjusted EBITDA loss was $1.4 million. The company's cash position strengthened to $95.2 million as of June 30, 2024. HyperX Arena hosted 65 event days in Q2, including 25 proprietary and 40 third-party events. AGAE faces challenges with increased costs, primarily due to legal expenses related to an activist shareholder.