Business
Simplicity Esports Signs Exchange Agreement with Software Company Diverted River Technology, LLC
Simplicity Esports Signs Exchange Agreement with Software Company Diverted River Technology, LLC.
About this update from Simplicity Esports And Gaming Company
[{"type":"text","content":"\n Diverted River is an Entertainment Technology Organization (“ETO”) started by the founders of ggCircuit. ggCircuit was sold to NASDAQ listed Esports Entertainment Group for $26,000,000 in 2021. Boca Raton, Florida, Sept. 29, 2022 (GLOBE NEWSWIRE) -- Simplicity Esports and Gaming Company (OTCQB:WINR) (“Simplicity Esports”) has entered into an exchange agreement with Diverted River Technology, LLC (“Diverted River”), pursuant to which Simplicity Esports agreed to acquire 100% of the membership interests of Diverted River in exchange for 80% of the issued and outstanding shares of Simplicity Esports’ common stock. Roman Franklin, CEO of Simplicity Esports, stated, “I am thrilled with the prospect of working together with Zack Johnson and his incredible team. Their previous company, ggCircuit, had software and services that dominated the esports gaming center industry space. Their experience, relationships, and reputation provide a solid foundation to grow Diverted River into a powerhouse company servicing the technology needs of the broader $35 billion-dollar family entertainment center industry.” Following the closing, it is expected that, Simplicity Esports’ name will be changed to Diverted River Technology, Inc., and the business of Simplicity Esports will become that of Diverted River, an ETO focused on a sustainable, high margin, recurring revenue business model that requires limited capital expenditures. It is also expected that Mr. Johnson, Diverted River’s CEO, will become CEO of the public company following the closing. Zack Johnson, CEO of Diverted River, added, \"We met Roman and Simplicity Esports three years ago when four different companies were bidding to buy our esports software company, ggCircuit. Simplicity Esports was a great client of ggCircuit and we are impressed with Roman and his business and financial intelligence in the public market. Now as we expand our platform experience into a 10x larger entertainment market, we are excited to join forces and launch our new platform together as Diverted River in 2023.\" \"Our team now boasts just shy of 80 million hours of usage on our software platforms over the past 20 years in high profile and public spaces in retail, educational, and esports venues,\" Johnson continued. \"The Family Entertainment...