The US based esports organisation, Simplicity Esports, have signed non-binding letters of intent to acquire five new esports centres.
The centres are currently franchise-owned but the acquisitions are due to be finalised by October 30th subject to completion of leases, due diligence, and execution of agreements.
“I am thrilled to continue growing our corporate-owned gaming centre 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 centres on a consolidated basis.”
This is part of a major push on the part of Simplicity to list themselves on the NASDAQ. They have recently applied to list their common stocks and warrants on the NASDAQ Capital Market. In order to prepare themselves to be listed, they have made concerted efforts to sure up their revenues and consolidate their major earners.
In order to achieve their goal, they have sold a portion of Flamengo Esports, their Brazillian operation to Redragon. This provided them with a strong foothold in the Brazilian market which allowed them to secure a franchise spot in Riot Games newly franchised League of Legends competition, Campeonato Brasileiro de League of Legends. They are now a long-term partner of Riot Games in the region.
There is currently no assurance that Simplicity will be approved to list on the NASDAQ, but their recent attempts to grow outside of the US have proven very successful. We expect to see major investment in the organisation if/when they are listed.