Business
Simplicity Esports and Gaming Company Acquires Three Esports Gaming Centers and Signs Percentage Rent Leases with Landlord
Simplicity Esports and Gaming Company Acquires Three Esports Gaming Centers and Signs Percentage Rent Leases with Landlord.
About this update from Simplicity Esports And Gaming Company
[{"type":"text","content":"\n Boca Raton, Florida, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Simplicity Esports and Gaming Company (OTCQB:WINR) (“Simplicity Esports”), announced today that it has signed definitive documents to acquire three additional franchisee owned esports gaming centers in California and Washington. These gaming centers, combined with other acquisition targets previously announced, generated over $2,000,000 in combined revenues in 2019. The closing of these acquisitions gives Simplicity a total of nine corporate owned, and 20 franchisee owned gaming centers open and operational. 12 other franchisee owned gaming centers remain closed due to government imposed restrictions. Roman Franklin, President of Simplicity Esports, stated, “COVID-19 related social distancing and capacity restrictions have had a negative impact on traffics counts for some of our gaming centers, but other locations are having record setting months for membership sales. One of our corporate owned gaming centers in Texas sold a record number 37 new memberships so far during the month of October. 2020 has presented us with an amazing opportunity to invest in the acquisition of gaming centers while simultaneously capitalizing on disruptions in commercial real estate that allow us to sign new five to 10 year leases with rent calculated as a percentage of gross sales. The EBITDA profile of the acquisitions is attractive to Simplicity because of the reduction of the largest fixed expense through the signing of new percentage rent leases. These acquisitions allow Simplicity Esports to report the full revenues generated by these gaming centers on a consolidated basis.” In addition to these closed acquisitions, Simplicity has six additional executed non-binding letters of intent for the acquisition of esports gaming centers with new percentage rent leases from landlords. The six additional acquisitions are expected to close by November 15, 2020. 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 tourna...