Esports Entertainment puts online gaming assets up for sale
Esports Entertainment Group to announced the departure of Grant Johnson from his position as Chairman and Chief Executive Officer, effective December 3, 2022.
The Board of Directors has identified several candidates to be the Company’s next CEO, and these candidates are currently going through the evaluation process. The Company has identified a preferred candidate for interim/acting CEO, and we will make a formal announcement naming this individual in the coming days pending a formal approval by the Nominating and Corporate Governance Committee. The Company has also announced Jan Jones Blackhurst as Chair of the Board of Directors.
“Grant recognized the value of esports and online gambling and founded EEG on that basis. On behalf of the Board, we wish him well,” said Ms. Jones Blackhurst. “The Company is looking forward to bringing in new leadership to work with Board to realize the full potential of our acquired esports businesses.”
The Company has made significant progress in recent months reducing costs and considering strategic options for iGaming assets that do not contribute to profits and cash flow. The progress includes:
Sale of the Company’s online casino business in Spain. The sale of the online casino business in Spain is expected to close on December 12, 2022. The proceeds from the sale, net of commissions, will be used primarily to pay down the principal on the Senior Convertible Note.
Closing of the Argyll iGaming operations in the United Kingdom and Ireland on December 7, 2022, due to high costs to operate in these markets and an inability to generate profits.
Initiation of a process to evaluate the strategic options for the iGaming business, including exploring a sale of iGaming assets due to increasing regulatory burdens and competition. Our new CEO will be tasked with assessing the value of the iGaming assets and determining next steps.