- The stock price of Allied Esports Entertainment Inc (NASDAQ: AESE) has increased by over 50% pre-market. This is why it happened.
The stock price of Allied Esports Entertainment Inc (NASDAQ: AESE) has increased by over 50% pre-market as of 5:30 AM ET. The last major announcement from Allied Esports was from mid-January so it appears that external factors are at play.
Investors appear to be responding to a sympathy play around the e-sports market. Yesterday the stock price of Super League Gaming, Inc. (NASDAQ: SLGG) increased by 29.93% and it is also up over 33% pre-market this morning as of 5:40 AM ET.
In January, Allied Esports Entertainment had announced that privately-held investment vehicle Element Partners was buying its poker-related business and assets, including the entities comprising the World Poker Tour. As part of the agreement, Element would acquire World Poker Tour for a total of $78.25 million, consisting of a $68.25 million upfront payment and a fully guaranteed revenue share of 5% of WPT-branded tournament entry fees on Element-owned or licensed gaming platforms, up to a maximum of $10 million, payable over three years after closing. And the Allied Esports Entertainment’s Board of Directors has approved the transaction, which was expected to close in late January or early February 2021 assuming that stockholders consent to the approval of the sale.
Allied Esports had filed a Schedule 14A with the SEC earlier this week. The Consent Solicitation Statement was sent to stockholders of Allied Esports Entertainment to approve the sale of 100% of the outstanding capital stock of Club Services, Inc. (CSI) to Element Partners. CSI is an indirect wholly-owned subsidiary of Allied Esports that directly or indirectly owns 100% of the outstanding capital stock of each of the legal entities that collectively operate or engage in the Allied Esports’ poker-related business and assets. And a press release was attached to the SEC filing about WPTDeepStacks announcing three series to take place on the 888poker European and global networks.
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