Simplicity Esports and Gaming Company Signs Non-binding Letters of Intent to Acquire Four Esports Gaming Centers in All Stock Deals
Boca Raton, Florida, Sept. 08, 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 four franchisee owned esports gaming centers. These gaming centers generated over $1,000,000 in combined revenues in 2019. The closing of the acquisitions is expected to occur by September 30th, and is 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, “On the heels of the successful acquisition of PL Gaming Texas LLC in El Paso, TX, a former franchisee owned location, we continue to execute on our strategy of growing revenue via acquisitions of existing, franchisee owned gaming centers. The role of our wholly owned subsidiary, PLAYlive Nation, Inc., as franchisor gives us direct insight into the financial performance, operations, and existing customer base of these franchisee owned gaming centers. Previously, Simplicity Esports has only reported the royalties collected from these franchisee owned locations, which is a small fraction of the overall revenue. These transactions, if closed, would allow us to report the full revenues generated by these gaming centers on a consolidated basis. As a result of signing leases with significantly improved terms including percentage rents, we expect each location to be cash flow positive during calendar year 2020.”
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 a franchisor of Esports Gaming Centers 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.
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 29, 2019 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.
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