Allied Gaming & Entertainment Announces Postponement of its 2024 Annual Meeting of Stockholders

Rhea-AI Summary

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.

Positive

• None.

Negative

• Ongoing legal dispute preventing normal corporate governance procedures
• Potential hostile takeover attempt below cash value
• Uncertainty regarding Annual Meeting timeline

Insights

Legal Expert

The postponement of AGAE's annual meeting amid ongoing litigation with Knighted Pastures represents a complex corporate governance challenge. The lawsuit's interference with standard shareholder proceedings highlights significant control and valuation disputes. Of particular concern is the allegation that Knighted aims to acquire control below the company's cash value, which could potentially trigger additional securities law implications.

The timing and nature of this dispute is especially notable given AGAE's current market capitalization of <money>$31.1 million</money>. The company's defensive posture suggests management believes they're protecting substantial underlying asset value. This situation could evolve into a broader battle over corporate control mechanisms and fiduciary responsibilities, potentially leading to prolonged legal proceedings that may impact shareholder value and corporate governance structures.

Corporate Governance Analyst

This postponement signals deeper institutional challenges beyond mere scheduling conflicts. The prevention of a routine annual meeting through legal action represents a material disruption to standard corporate governance processes. For retail investors, this development raises red flags about potential board instability and management effectiveness.

The conflict centers on valuation disputes, with management claiming defense against opportunistic takeover attempts below cash value. This suggests AGAE may be trading at a discount to its liquid assets, a situation that typically attracts activist investors. The inability to hold the annual meeting could delay important strategic decisions and shareholder votes, potentially impacting the company's operational efficiency and market perception.

NEW YORK--(BUSINESS WIRE)-- Allied Gaming & Entertainment, Inc. (NASDAQ: AGAE) (the “Company” or “AGAE”), a global experiential entertainment company, announced today the postponement of its 2024 Annual Meeting of Stockholders (“Annual Meeting”), originally scheduled for December 30, 2024, due to the previously disclosed lawsuit filed by Knighted Pastures LLC (“Knighted”) against the Company which prevents the Annual Meeting from being held prior to its conclusion. The Company believes that the lawsuit is yet another attempt by Knighted and its Managing Partner, Roy Choi, to pursue their scheme to gain control of the Company at a discounted price below the Company’s cash value to further their own short-term interests, while destroying long-term value for all stockholders of AGAE.

As a result of this pending lawsuit and in accordance with the litigation schedule order, the Company must reschedule its previously scheduled Annual Meeting, along with all related deadlines, until after the lawsuit is resolved. The Company currently is unable to determine the exact date of the Annual Meeting. The Company will provide an update to stockholders as soon as it is able to set the Annual Meeting date.

About Allied Gaming & Entertainment

Allied Gaming & Entertainment Inc. (Nasdaq: AGAE) is a global experiential entertainment company focused on providing a growing world of gamers and concertgoers with unique experiences through renowned assets, products and services. For more information, visit alliedgaming.gg.

Forward Looking Statements

This communication contains certain forward-looking statements under federal securities laws. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “intend” or “continue,” the negative of such terms, or other comparable terminology. These statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results to be materially different from those contemplated by the forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our control, that could cause actual results or outcomes to differ materially from those discussed in these forward-looking statements. The inclusion of such information should not be regarded as a representation by the Company, or any person, that the objectives of the Company will be achieved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241223048971/en/

Investor Contact:

Addo Investor Relations

ir@alliedgaming.gg

Source: Allied Gaming & Entertainment, Inc.

FAQ

Why did AGAE postpone its 2024 Annual Meeting of Stockholders?

AGAE postponed its 2024 Annual Meeting due to a lawsuit filed by Knighted Pastures , which prevents the meeting from being held until the legal matter is resolved.

What is the nature of the lawsuit against AGAE by Knighted Pastures?

According to AGAE, the lawsuit is an attempt by Knighted Pastures and Roy Choi to gain control of the company at a price below its cash value, potentially harming long-term stockholder value.

When was AGAE's 2024 Annual Meeting originally scheduled?

The Annual Meeting was originally scheduled for December 30, 2024.

When will AGAE's rescheduled Annual Meeting take place?

AGAE is currently unable to determine the exact date of the rescheduled Annual Meeting and will provide updates to stockholders once a new date can be set after the lawsuit's resolution.