- In addition, the rapid growth and popularity of gaming and cybersports during the COVID-19 pandemic spurred strategic interest in Allied Esports' cybersports business, and the Board agreed to explore strategic options for the cybersports business, including a possible sale.
- Allied Esports has engaged Lake Street Capital Markets to assist in this process. No potential or specific buyer has been identified at this time, and there are no initial or ongoing negotiations on the sale of the cybersports business.
- Following the completion of the WPT transaction and subject to the completion and completion of a possible sale of the cybersports business, Allied Esports Entertainment will continue to operate under its new name as a publicly traded holding company focused on using its cash resources to explore online opportunities, including but not limited to real money gaming and other gaming sectors.
Frank Ng, CEO of Allied Esports Entertainment, commented:
"Despite the many challenges caused by the COVID-19 pandemic, WPT's business achieved substantial and impressive results, particularly through its online platforms and services, and made a significant contribution to the company.
In addition, Allied Esports, with its world-renowned HyperX Esports Arena in Las Vegas and best-in-class services, caught the market's attention as the eSports industry gained momentum during the pandemic."
Mr. Ng continued:
"Given the impact of COVID-19 on the company's overall revenue generation and profitability schedule, we believe that the upcoming sale of the WPT business will raise significant capital and open the door to identifying new opportunities that will bring accelerated returns to our shareholders."
"I want to thank Frank Ng and the entire AESE management team for their support in enabling WPT to thrive during this period. My management team and I are very excited about this next chapter and the exciting new opportunities for the WPT brand and business."