U.S. based esports organisation Simplicity Esports has signed non-binding letters of intent to acquire five franchisee-owned esports centres.
The acquisitions are due to be closed by October 30, subject to due diligence, execution of definitive agreements, and completion of leases with improved terms with the respective landlords.
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The latest acquisitions come amid a period of rapid activity from Simplicity Esports. Revenues of the newly acquired esports and gaming centres along with the company’s other recent purchased combined for a total of over $2M (~£1.533M) in 2019.
Other recent moves include selling off a portion of its Brazilian venture, Flamengo Esports, and securing a franchise spot in Riot Games‘ newly franchised Brazilian League of Legends competition CBLoL. Additionally, Simplicity Esports has applied to have its stock uplisted on the NASDAQ Capital Market – although there is no assurance that the company’s application will be approved.
RELATED: Simplicity Esports set to purchase four esports centres in Florida
Roman Franklin, President of Simplicity Esports, noted that he is “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.”
Esports Insider says: The activity from Simplicity in recent months is a strong indicator that the company is seeking to sure up its base. Of particular interest is the motivation to be able to report the full revenues of these centres. Having a more complete set of books will aid Simplicity’s NASDAQ aspirations.
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Read the original post: Simplicity Esports to acquire five additional gaming centres
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