Esports Entertainment Group announces company restructuring
Amid changes at the top, the beleaguered firm reports major progress in cost-cutting measures
Esports Entertainment Group (EEG) has announced it has made several moves to cut costs as troubles in the firm continue.
Following the rumoured departure of CEO Grant Johnson on Monday, EEG’s shares dropped 12.7% at the close of play yesterday. This comes on top of a series of struggles which has seen the firm’s share price fall by 98.06% in the last year.
EEG announced several moves it has made to cut costs.
The firm’s online casino business in Spain is to be sold, with the sale set to be closed by Monday 12 December 2022. The proceeds of the sale and the of commissions will be used to pay down the principal on the senior convertible note.
EEG also stated that it has closed all of Argyll’s igaming operations in the UK and Ireland due to high operation costs and the gaming arm’s inability to generate profit.
The firm is also in talks with its debt holder to restructure its payment obligations, including eliminating the derivative liability on its consolidated balance and addressing the company’s default status under the debt. As a result, the firm is optimistic that an agreement can be reached for the benefit of both parties in the near term.
EEG confirmed that it has received approval to continue its listing on the Nasdaq despite its recent struggles.
Alongside the announcements, EEG confirmed that Grant Johnson has left his position as CEO of the firm. In addition, it has stated that its board has identified several candidates to take over the role.
Johnson initially joined EEG as CEO in May 2014 following a lengthy career in the health and finance sectors.
The firm has appointed Jan Jones Blackhurst as chair of the board of directors. She will also act as interim CEO until a new permanent chief is found.
In a statement, Blackhurst said: “Grant recognised the value of esports and online gambling and founded EEG on that basis. On behalf of the board, we wish him well.
“The company is looking forward to bringing in new leadership to work with the board to realise the full potential of our acquired esports businesses.”
All of this news just adds to the continued downfall of EEG. After less than a year since launch, the firm recently closed its esports-dedicated sportsbook Vie.gg.
EEG currently operates Bethard and Dino Lucky Gaming