Business
Simplicity Esports and Gaming Company Acquires One of Its Top Performing Franchisee-Owned Esports Gaming Centers and Signs a Percentage Rent Lease
Simplicity Esports and Gaming Company Acquires One of Its Top Performing Franchisee-Owned Esports Gaming Centers and Signs a Percentage Rent Lease.
About this update from Simplicity Esports And Gaming Company
[{"type":"text","content":"\n 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 partner 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, reg...