Simplicity Esports and Gaming Company Signs Non-binding Letters of Intent to Acquire Five Additional Esports Gaming Centers in All Stock Deals

Rhea-AI Summary

Simplicity Esports and Gaming Company (OTCQB:WINR) announced non-binding letters of intent to acquire five franchisee-owned esports gaming centers, expected to close by October 30, 2020. These centers generated over $2 million in revenue in 2019. President Roman Franklin expressed optimism about expanding their corporate footprint and increasing revenues through these acquisitions. Notably, the acquisition structure involves franchisees receiving restricted stock as payment. Additionally, the company has applied for NASDAQ uplisting and recently secured a League of Legends franchise.

Positive

• Acquisition of five esports gaming centers expected to generate over $2 million in revenue.
• Franchisees receiving restricted stock indicates confidence in the business model.
• Recent League of Legends franchise acquisition enhances market position.

Negative

• No assurance of NASDAQ uplisting approval.
• Acquisitions subject to standard due diligence and execution of definitive agreements, introducing potential delays.

Boca Raton, Florida, Oct. 07, 2020 (GLOBE NEWSWIRE) -- Simplicity Esports and Gaming Company (OTCQB:WINR) (“Simplicity Esports”), announced today that it has signed non-binding letters of intent (“LOIs”) to acquire five franchisee owned esports gaming centers. These gaming centers, combined with other acquisition targets previously announced, generated over $2,000,000 in combined revenues in 2019. The closings of the acquisitions are expected to occur by October 30, 2020, and are subject to standard due diligence, execution of definitive agreements, and completion of leases with improved terms with the respective landlords.

Roman Franklin, President of Simplicity Esports, stated, “I am thrilled to continue growing our corporate owned gaming center footprint and increasing our expected revenues through the acquisition of additional franchisee owned locations. We value all of our franchisee and landlord relationships. The fact that franchisees are receiving restricted shares of stock as payment for the acquisitions, and landlords are agreeing to percentage rent leases is a testament to their confidence in our business model and the future for Simplicity Esports. These transactions, if closed, would allow Simplicity Esports to report the full revenues generated by these gaming centers on a consolidated basis.”

The new LOIs come on the heels of the announcement that Simplicity Esports has applied to uplist its common stock and warrants for trading on the NASDAQ Capital Market, and the award of a League of Legends franchise by Riot Games last week. There is no assurance that our listing application will be approved by the NASDAQ Capital Market.

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' new acquisitions?

The acquisitions aim to enhance revenue by consolidating franchisee-owned gaming centers, generating over $2 million in 2019.

When are the acquisitions expected to close?

The acquisitions are expected to close by October 30, 2020, pending due diligence and agreements.

What are the terms of payment for the franchisees?

Franchisees will receive restricted shares of stock as payment for the acquisitions.

What is the potential impact of the NASDAQ uplisting application?

If approved, uplisting could enhance visibility and access to capital for Simplicity Esports.

How does the League of Legends franchise affect Simplicity Esports?

The franchise enhances the company's offerings and competitive position in the esports industry.