Esports Entrainment share price dives after it suspends dividend
Esports Entertainment Group announced that its Board of Directors has suspended payment of the monthly cash dividend on the Company’s outstanding 10% Series A convertible preferred stock.
Alex Igelman, CEO of Esports Entertainment stated, “We are temporarily suspending the dividend on our 10% Series A Cumulative Redeemable Convertible Preferred Stock, as we believe we can effectively reinvest the capital in the business in order to drive the greatest return on capital for shareholders. This is an exciting time for Esports Entertainment, as we execute on our turnaround strategy and position the Company for long-term success. Management and the board of directors will continue to monitor the financial performance of the company to determine the appropriate time to reinstate the dividend.”
The Company has paid the monthly dividend for November 2023 as previously announced on November 3, 2023. In accordance with the terms of the Series A Preferred Stock, unpaid dividends will continue to be accrued.