Simplicity Esports Acquires Franchisee Owned Gaming Center in St. Petersburg, Florida and Agrees to a New Lease with Landlord

Rhea-AI Summary

Simplicity Esports and Gaming Company (OTCQB:WINR) has signed a definitive agreement to acquire the assets of a franchisee-owned esports gaming center in St. Petersburg, FL. The acquisition includes furniture, fixtures, equipment, inventory, and a customer list, valued at 29,504 shares of restricted common stock. This is the second acquisition within a week, aimed at expanding its footprint. St. Petersburg's population includes over 66,000 residents under 24, offering potential market growth. The acquisition allows full revenue reporting from gaming centers, enhancing financial consolidation.

Positive

• Expansion into St. Petersburg, increasing corporate-owned locations to six.
• Full revenue reporting from gaming centers enhances financial performance.
• Opportunity to tap into a young demographic of over 66,000 residents.

Negative

• None.

Boca Raton, Florida, Oct. 05, 2020 (GLOBE NEWSWIRE) -- Simplicity Esports and Gaming Company (OTCQB:WINR) (“Simplicity Esports”) announced today it signed a definitive agreement with one of its franchisees to acquire all of the assets of its esports gaming center including furniture, fixtures, equipment, inventory, and customer list. The franchisee owned gaming center in St. Petersburg, FL was first opened under the PLAYlive Nation brand on May 12, 2017. The full consideration for the acquisition is 29,504 shares of restricted Simplicity Esports common stock.

Roman Franklin, President of Simplicity Esports, commented, “This is our second acquisition in the last week and we expect to continue executing our strategy of acquiring franchisee owned locations while simultaneously signing new or amended leases with significantly improved terms. Our renegotiated lease agreement with this landlord requires us to pay rent as a percentage of gross sales along with a small fixed payment for taxes and maintenance. St. Petersburg becomes the sixth corporate owned gaming center in our growing nationwide footprint.”

“The city of St. Petersburg is home to over 265,000 residents, of which over 66,000 are under the age of 24. We believe there is a tremendous opportunity in the local market to expand the reach of our gaming center. The current staff will remain in their roles as we move to grow Simplicity Esports’ customer base in the area.”

Simplicity Esports’ acquisition of franchisee owned esports gaming centers allows Simplicity Esports to report the full revenues generated by the gaming centers on a conslidated basis. Previously, Simplicity Esports only reported the franchise royalty fee, calculated as 6% of gross sales, paid by franchisees.

About Simplicity Esports and Gaming Company:

Simplicity Esports and Gaming Company (WINR) is an established brand within the esports industry, competing and streaming in popular games across different genres, including Apex Legends^®, PUBG Mobile^®, Overwatch^®, League of Legends^®, and various EA Sports^® titles. Simplicity Esports also organizes and hosts various online play from home tournaments in the U.S. and Brazil. Simplicity Esports also operates as an owner and franchisor of the largest footprint of Esports Gaming Centers in North America, that provide the public an opportunity to experience and enjoy gaming and esports in a social setting, regardless of skill or experience. Additionally, Simplicity Esports is an organizer and host of paid entry, online, play from home tournaments.

Apex Legends^®, PUBG Mobile^®, Overwatch^®, League of Legends^®, Fortnite^®, EA Sports^® and Free Fire^® are registered trademarks of their respective owners.

Forward-Looking Statements:

This press release contains statements that constitute “forward-looking statements.” Forward-looking statements are subject to numerous conditions, many of which are beyond Simplicity Esports’ control, including those set forth in the Risk Factors section of Simplicity Esports’ Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on August 31, 2020 and our subsequent SEC filings, as amended or updated from time to time. Copies of Simplicity Esports’ filings with the SEC are available on the SEC’s website at www.sec.gov. Simplicity Esports undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Simplicity Esports Contact:

Roman Franklin
President
Roman@SimplicityEsports.com
561-819-8586

FAQ

What is the significance of Simplicity Esports acquiring the St. Petersburg gaming center?

The acquisition allows Simplicity Esports to grow its corporate-owned locations to six and report full revenues from the center.

How many residents are in St. Petersburg, and how does it impact Simplicity Esports?

St. Petersburg has over 265,000 residents, with more than 66,000 under 24, presenting a significant market opportunity for Simplicity Esports.

What are the terms of the asset acquisition by Simplicity Esports?

The acquisition includes furniture, fixtures, equipment, inventory, and a customer list, compensated with 29,504 shares of restricted common stock.

What is Simplicity Esports' strategy regarding franchisee locations?

Simplicity Esports aims to acquire franchisee-owned locations while improving lease terms for its gaming centers.

When was the St. Petersburg gaming center first opened?

The St. Petersburg gaming center was opened on May 12, 2017, under the PLAYlive Nation brand.