Esports Entertainment Group CEO Grant Johnson Leaving; company escapes Nasdaq delisting

Esports Entertainment Group has announced the departure of Grant Johnson as Chief Executive Officer of the company, a decision that took effect earlier this month, on December 3. In a press release, the online esports and betting company said its The board of directors has identified “several candidates” to be the next CEO of EEG, and that these candidates are currently going through the evaluation process. The operator was confronted a turbulent time in recent years amid brand closures and significant operating losses.

The company has identified a preferred candidate for the interim/interim CEO position, and we will make a formal announcement naming that person in the coming days. pending formal approval by the Nominating and Corporate Governance Committee,” the company said last week. “The company also announced the appointment of Jan Jones Blackhurst as Chairman of the Board..”

“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 Jones Blackhurst.. “The company looks forward to bringing in new leaders to work with the board to realize the full potential of our acquired esports businesses.”

News of Johnson’s departure comes as the company progresses with cost reduction plans and considers strategic options for iGaming assets that do not contribute to profits and cash flow. The company recently sold its online casino business in Spain, which is expected to close today, Monday; and closed Argyll iGaming operations in the UK and Ireland on December 7 due to high operating costs in those markets and an inability to generate profits.

But EEG is also considering exiting the iGaming vertical altogether and has initiated a process to assess strategic options, including a sale. iGaming assets due to “increased regulatory burdens and competition”. The new CEO will be responsible for assessing the value of online gambling assets and determining next steps, the company said.

The operator also escaped Nasdaq delisting this month and will continue to list on the condition that it drastically increases its share price. by February. EEG is looking to continue executing on its IPO plan while restructuring its debt and capitalizing on its esports assets.

The Nasdaq Hearings Panel granted EEG’s application for continued listing on November 30, subject to it proving compliance with the minimum offering price requirement by February 7.attesting to meeting the capital requirement of a minimum of $2.5 million by March 31, and meeting “certain other conditions and requirements.”

The company is also in talks with its creditor to restructure its payment obligations, including, but not limited to, eliminating the derivative liability on its consolidated balance and resolving the company’s default status under debt. “The company is optimistic that an agreement can be reached to benefit both parties in the near term,” the company said.

Additionally, EEG announced that it recently received a non-binding letter of intent from a third party proposing to merge its assets., including intellectual property, with that of the operator. “The combined company would be focused on growing esports revenue,” EEG noted, noting the proposal is currently “under study”.

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