Simplicity Esports and Gaming Company Acquires One of Its Top Performing Franchisee-Owned Esports Gaming Centers and Signs a Percentage Rent Lease
Boca Raton, Florida, June 29, 2020 (GLOBE NEWSWIRE) -- Simplicity Esports and Gaming Company (OTCQB:WINR) (“Simplicity Esports”), announced today that it formed a new, majority owned subsidiary and acquired all of the assets of PL Gaming Texas LLC, one of the most successful franchisee-owned esports gaming centers in its nationwide footprint. The consideration paid for the acquisition was a combination of cash and restricted shares of common stock. Additionally, Simplicity Esports executed a lease assignment and amendment with the landlord that does not require a specified fixed rent, but instead determines rent as a percentage of gross sales.
Roman Franklin, President of Simplicity Esports, stated, “Our franchisee has done an excellent job building, staffing, and growing this location. The gaming center consists of over 30 gaming stations, gaming related merchandise and accessories for sale, and a quality staff that will remain in place after the acquisition to continue serving the center’s thousands of existing customers. The percentage rent lease structure gives us the necessary flexibility to navigate COVID-19 related impacts on customer traffic counts by reducing fixed costs. As previously announced, we continue to use the strength of our corporate guarantee to prtner with landlords on percentage rent leases. Prior to this acquisition, Simplicity Esports only reported the royalty fees collected from the franchisee in its financial statements. However, because financial reporting for majority owned gaming centers is consolidated, as a result of this acquisition, 100% of this gaming center’s revenue will now be included in Simplicity Esports’ financial statements.”
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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