Esports Entertainment suspends the disbursement of monthly cash dividends on its outstanding 10% Series A stock. These stocks are redeemable, collectible, and convertible.
It was December when the monthly dividend was due. Nevertheless, EEG announced that the suspension had been approved by its board of directors. As previously reported, the company paid the monthly dividend for November 2023.
In tandem with the Series A preferred stock agreement, dividends that have not been released will remain collected. As per the Chief Executive of EEG, Alex Igelman, the suspension will help in increasing capital for EEG to invest back into the company. In the future, the value of shareholders will witness a rise.
According to Igelman, this is a deliberate decision by the corporation to achieve long-term goals that the company has set. Meanwhile, Management and the Board of Directors will be responsible for monitoring its financial standing in order to determine whether to resume the policy of paying monthly dividends.
The suspension occurs during an uncertain first quarter for EEG. The company’s revenue collection dropped by 71.9% in November. Following the sale of its Bethard setup, it stood at $2.2 million in the first quarter of 2023.
In February, the Group decided to sell the Bethard online casino and sportsbook operations for 9.5 million euros. The final hand was dealt near the end of the month.
EEG also went through the closure and liquidation of Argyll enterprises. All revenue-generating enterprises are being seized in December. As a result, costs were reduced. However, the deficit grew from $4.2 million to $4.8 million. Per the latest sports news, the adjusted EBITDA loss increased from $1.0 million to $358,870.
After all is said and done, CEO Igelman remains optimistic about the future and announced the agreement to acquire a 30% minority stake in Esports content creator Drafted.gg.