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Esports Entertainment cancels the monthly dividend

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Esports Entertainment Group has suspended the payment of monthly cash dividends on its Series A Cumulative Redeemable Convertible Preferred Stock.

Dividends were due in December. EEG has confirmed that this dividend will now be suspended.

As announced by the company last month, it paid its monthly dividends for November 2023. According to the Series A preferred stocks terms, any unpaid dividends continue to accrue.

Alex Igelman, chief executive of EEG, said that the suspension would allow EEG to invest more money in its business. He said that the suspension would result in greater long-term value for investors.

Igelman stated that “We have temporarily suspended the dividends on our Series A cumulative redeemable convertible preferred stock of 10%, because we feel we can reinvest capital into the business to maximize the return for the shareholders.”

This is an exciting period for EEG as we implement our turnaround strategy to position the firm for long-term growth.

The board and management will monitor the performance of the business to decide when it is appropriate to restore the dividend.

Esports Entertainment’s revenue drops by 71.9% during the first quarter

EEG had a difficult Q1. The business announced last month that its revenue in Q1 fell by 71.9% to $2.7m ($2.2m/£2.5m) after selling Bethard earlier this year.

In February, the group decided to sell Bethard’s online sportsbook and casino for EUR9.5m. EEG completed the sale in February, selling the entire business.

EEG has also reported the liquidation and winding-down of Argyll companies. In December, revenue-producing activities ceased. This had an impact on comparisons between years.

Costs were reduced due to the sale and dismantling, yet net loss still increased from $4.2m up to $4.8m. The adjusted EBITDA losses improved, from $1.0m down to $344.870.

Igelman, CEO of Igelman Group Inc. said that he is still optimistic about the long-term plans for growth. He cited the recent acquisition of a 30% interest in Drafted.gg esports, which he said would further support his long-term goals.

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