Simplicity Esports and Gaming Company has acquired four franchisee owned esports gaming centers in an all stocks deal.
Roman Franklin, President of Simplicity Esports, stated, “On the heels of the successful acquisition of PL Gaming Texas LLC in El Paso, TX, a former franchisee owned location, we continue to execute on our strategy of growing revenue via acquisitions of existing, franchisee owned gaming centers. The role of our wholly owned subsidiary, PLAYlive Nation, Inc., as franchisor gives us direct insight into the financial performance, operations, and existing customer base of these franchisee owned gaming centers. Previously, Simplicity Esports has only reported the royalties collected from these franchisee owned locations, which is a small fraction of the overall revenue. These transactions, if closed, would allow us to report the full revenues generated by these gaming centers on a consolidated basis. As a result of signing leases with significantly improved terms including percentage rents, we expect each location to be cash flow positive during calendar year 2020.”
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