Allied Gaming & Entertainment Announces Strategic Investment from Yellow River Global Capital
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) ha ottenuto un investimento strategico da Yellow River Global Capital, che comprende 6,6 milioni di dollari per 6 milioni di azioni ordinarie. Yellow River riceverà anche warrant per acquistare ulteriori 6 milioni di azioni a 1,80 dollari per azione nell'arco di cinque anni. Come parte dell'accordo, Yellow River ha guadagnato il diritto di nominare un Direttore di Classe A, scegliendo Zongmin (Philip) Ding, che porta con sé un'ampia esperienza da vari ruoli di direttore e gestione. La partnership mira a potenziare il potenziale di crescita di AGAE nelle catene di intrattenimento locale e nell'acquisizione di contenuti di proprietà intellettuale nel settore dell'intrattenimento.
Allied Gaming & Entertainment (NASDAQ: AGAE) ha conseguido una inversión estratégica de Yellow River Global Capital, que consiste en 6,6 millones de dólares por 6 millones de acciones ordinarias. Yellow River también recibirá opciones para comprar 6 millones de acciones adicionales a 1,80 dólares por acción durante un período de cinco años. Como parte del acuerdo, Yellow River obtuvo el derecho a nombrar un Director de Clase A, eligiendo a Zongmin (Philip) Ding, quien aporta una amplia experiencia en diversos roles de dirección y gestión. La asociación tiene como objetivo aumentar el potencial de crecimiento de AGAE en cadenas de entretenimiento basadas en la ubicación y la adquisición de propiedad intelectual en contenidos de entretenimiento.
Allied Gaming & Entertainment (NASDAQ: AGAE)는 Yellow River Global Capital로부터 전략적 투자를 확보하였으며, 이는 660만 달러에 600만 주의 보통주를 포함합니다. Yellow River는 또한 향후 5년 동안 주당 1.80달러에 추가적으로 600만 주를 구매할 수 있는 워런트를 받게 됩니다. 계약의 일환으로 Yellow River는 A급 이사 1명을 임명할 권리를 얻었으며, 이사로는 다양한 이사 및 관리 직책에서 폭넓은 경험을 가진 Zongmin (Philip) Ding을 선택했습니다. 이번 파트너십은 AGAE가 위치 기반 엔터테인먼트 체인과 엔터테인먼트 콘텐츠 IP 인수에서 성장 가능성을 높이는 것을 목표로 하고 있습니다.
Allied Gaming & Entertainment (NASDAQ: AGAE) a sécurisé un investissement stratégique de Yellow River Global Capital, comprenant 6,6 millions de dollars pour 6 millions d'actions ordinaires. Yellow River recevra également des bons pour acheter 6 millions d'actions supplémentaires à 1,80 dollar par action sur une période de cinq ans. Dans le cadre de l'accord, Yellow River a obtenu le droit de nommer un administrateur de classe A, choisissant Zongmin (Philip) Ding, qui apporte une vaste expérience acquise dans divers rôles de direction et de gestion. Le partenariat vise à renforcer le potentiel de croissance d'AGAE dans les chaînes de divertissement basées sur la localisation et l'acquisition de droits de propriété intellectuelle pour le contenu de divertissement.
Allied Gaming & Entertainment (NASDAQ: AGAE) hat eine strategische Investition von Yellow River Global Capital gesichert, die 6,6 Millionen Dollar für 6 Millionen Stammaktien umfasst. Yellow River wird auch Optionen erhalten, um in den nächsten fünf Jahren weitere 6 Millionen Aktien zu einem Preis von 1,80 Dollar pro Aktie zu erwerben. Im Rahmen der Vereinbarung erhielt Yellow River das Recht, einen Direktor der Klasse A zu ernennen, und wählte Zongmin (Philip) Ding, der umfangreiche Erfahrung aus verschiedenen Direktoren- und Managementfunktionen mitbringt. Die Partnerschaft zielt darauf ab, das Wachstumspotenzial von AGAE im Bereich der standortbasierten Unterhaltungs- und IP-Akquisition für Unterhaltungsinhalte zu steigern.
- Secured $6.6 million strategic investment from Yellow River Global Capital
- Potential for additional $10.8 million through warrant exercise ($1.80 x 6M shares)
- Strategic partnership provides access to industry expertise and networking opportunities
- Addition of experienced board member with M&A background
- Share dilution through issuance of 6 million new shares
- Additional potential dilution from 6 million warrant shares
Insights
This strategic investment marks a significant development for AGAE, bringing in
The warrant structure suggests long-term commitment while providing potential upside for both parties. The premium pricing indicates confidence in AGAE's growth trajectory. The strategic partnership goes beyond capital injection, offering valuable industry connections and expertise that could accelerate AGAE's expansion plans in entertainment content IP and location-based entertainment chains.
“We are very excited to close this investment from Yellow River, who has expertise across a variety of industries and is adept at connecting, and growing businesses,” said Yinghua Chen, CEO of AGAE. “Yellow River’s investment in AGAE will further enhance our ability to identify growth opportunities in location-based entertainment chains and the creation and acquisition of entertainment content intellectual property (IP). We are extremely confident that this partnership will bolster our growth potential as we continue building out the Allied ecosystem.”
Terms of Investment
AGAE and Yellow River Capital Group have entered into a strategic relationship, including an investment of
Allied Gaming & Entertainment Board of Directors
Effective as of October 22, 2024, Mr. Zongmin (Philip) Ding was appointed as a Class A Director on the Company’s Board. Mr. Ding is a highly experienced board member and has been the Director of Guangzhou Seagull Kitchen and Bath Products Co., Ltd. (SZ Stock Exchange: 002084.SZ) since 2015. He also serves as Director and General Manager of Shanghai Guo Chun Venture Capital, a role he has held since 2013, and as Director of Shanghai International Group Venture Capital since 2012. Additionally, Mr. Ding is a Director of Datong Taicera Ceramic Industry Co., Ltd. and General Manager of Shanghai Qinshui Family Business Management Co. Earlier in his career, he was the Director of Mergers & Acquisitions at Guo Tai Jun An Securities from 2010 to 2012, and from 2006 to 2010, he worked as a Manager of Outbound M&A at PricewaterhouseCoopers (PwC). Mr. Ding holds a Master's degree from Shanghai Jiao Tong University. Mr. Ding is a valuable addition to the Board that will enhance the Board’s ability to provide effective oversight and management as the Company continues to execute its growth strategies.
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.
About Yellow River Global Capital
Yellow River Global Capital Limited, founded in 2016, is a leading alternative private equity firm based in
Forward Looking Statements
This communication contains certain forward-looking statements under federal securities laws. Forward-looking statements include, but are not limited to, statements regarding the benefit of strategic investment by Yellow River Global Capital and potential growth opportunities. 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. Important factors, among others, that may affect actual results or outcomes include: risks associated with the future direction or governance of the Company; our ability to execute on our strategic and business plans; the substantial uncertainties inherent in the acceptance of existing and future products and services; the ability to retain key personnel; potential litigation; general economic and market conditions impacting demand for our services; our inability to enter into one or more future acquisition or strategic transactions; and our ability, or a decision not to pursue strategic options for the esports business. You should consider the areas of risk described in connection with any forward-looking statements that may be made herein. The business and operations of AGAE are subject to substantial risks, which increase the uncertainty inherent in the forward-looking statements contained in this communication. Except as required by law, we undertake no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Further information on potential factors that could affect our business and results is described under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on March 28, 2024, as amended by the Form 10-K/A filed with the SEC on April 29, 2024, as well as subsequent reports we file with the SEC. Readers are also urged to carefully review and consider the various disclosures we made in such Annual Report on Form 10-K and in subsequent reports with the SEC.
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Investor Contact:
Addo Investor Relations
ir@alliedgaming.gg
Source: Allied Gaming & Entertainment, Inc.
FAQ
How much did Yellow River Global Capital invest in Allied Gaming & Entertainment (AGAE)?
What warrants did Yellow River receive in the AGAE investment deal?
Who was appointed as the new Class A Director of AGAE on October 22, 2024?
What is the exercise price premium of AGAE warrants compared to the closing price?
