Simplicity Esports and Gaming Company Acquires Esports Gaming Center in Salinas California

Rhea-AI Summary

Simplicity Esports and Gaming Company (WINR) has acquired a gaming center from a PLAYlive Nation franchisee at Northridge Mall, Salinas, California. This center, operational since 2018, features 24 gaming stations and a tabletop area. With this acquisition, Simplicity now owns 16 corporate gaming centers and has 12 franchise-owned locations. CEO Roman Franklin highlighted a revenue generation of approximately $3 million from acquisitions in 2019. The company plans to incorporate crypto mining at the new location and aims for a NASDAQ or NYSE American listing.

Positive

• Acquisition of new gaming center enhances presence in the esports market.
• Total of 16 corporate gaming centers and 12 franchise locations increases market footprint.
• Potential for revenue growth through crypto mining during idle gaming periods.
• Historical sales of approximately $3 million from prior acquisitions in 2019 suggest strong revenue potential.

Negative

• No guarantee of NASDAQ or NYSE American listing approval poses uncertainty for investors.

Simplicity now has corporate owned gaming centers at malls owned and managed by Simon Property Group, Brookfield Properties, Jones Lang LaSalle Inc (“JLL”), and others.

Boca Raton, Florida, July 27, 2021 (GLOBE NEWSWIRE) -- Simplicity Esports and Gaming Company (OTCQB:WINR) (“Simplicity Esports”), announced that it acquired 100% of the assets of an esports gaming center owned by a PLAYlive Nation franchisee. The gaming center located at Northridge Mall in Salinas, California, was opened in mid 2018 with 24 gaming stations and a separate tabletop space to accommodate up to 30 players of card games such as Pokémon and Magic: The Gathering. The location in Salinas is expected to reopen this week with all existing staff being retained by Simplicity. Simplicity Esports now owns a total of 16 gaming centers, and also has 12 operational franchisee owned gaming center locations at various capacities.

Roman Franklin, CEO of Simplicity Esports, stated, “I am excited to continue executing our growth strategy of acquiring existing gaming centers and signing percentage rent leases with landlords. As we have previously stated, our gaming center acquisitions generated approximately $3,000,000 in sales in 2019, and all of our corporate owned gaming centers currently operate with percentage rent leases. We plan to include the Salinas location in our crypto mining program, that mines crypto currency during periods when gaming stations are idle, once the location is fully operational with its PCs. Assuming no new COVID-19 related restrictions, I expect customers to continue returning to our gaming centers and revenues to continue growing as a result of the increased traffic.”

Simplicity Esports intends to list its common stock and warrants on The NASDAQ Capital Market or the NYSE American. There is no guarantee that the listing application will be approved by The Nasdaq Capital Market or the NYSE American.

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 is also in the process of designing, minting, and selling non-fungible tokens (NFTs) for the esports and gaming industries. Simplicity Esports also owns 16 esports gaming centers, and is the franchisor for 17 esports gaming centers, providing the public an opportunity to experience gaming and esports in competitive and casual social settings, regardless of skill or experience. Simplicity Esports also organizes and hosts various in-person events and play from home, online tournaments. Simplicity Esports also owns a Riot Games League of Legends franchise and top Brazilian esports organization, Flamengo Esports.

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
Chief Executive Officer
Roman@SimplicityEsports.com 
561-819-8586

FAQ

What is the recent acquisition by Simplicity Esports?

Simplicity Esports acquired a gaming center from a PLAYlive Nation franchisee located at Northridge Mall, Salinas, California.

How many gaming centers does Simplicity Esports now operate?

Simplicity Esports now operates a total of 16 corporate gaming centers.

What were the sales figures for Simplicity Esports' acquisitions?

The acquisitions generated approximately $3 million in sales in 2019.

What plans does Simplicity Esports have for the new location in Salinas?

The new location will include a crypto mining program and is expected to reopen soon with retained staff.

Is there a potential for Simplicity Esports to list on a major stock exchange?

Simplicity Esports intends to list its common stock and warrants on NASDAQ or NYSE American, though approval is not guaranteed.