Simplicity Esports Acquires Franchisee Owned Gaming Center in St. Petersburg, Florida and Agrees to a New Lease with Landlord
Simplicity Esports and Gaming Company announced it signed a definitive agreement with one of its franchisees to acquire all of the assets of its esports gaming center including furniture, fixtures, equipment, inventory, and customer list. The franchisee owned gaming center in St. Petersburg, FL was first opened under the PLAYlive Nation brand on May 12, 2017. The full consideration for the acquisition is 29,504 shares of restricted Simplicity Esports common stock.
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Roman Franklin, President of Simplicity Esports, commented, “This is our second acquisition in the last week and we expect to continue executing our strategy of acquiring franchisee owned locations while simultaneously signing new or amended leases with significantly improved terms. Our renegotiated lease agreement with this landlord requires us to pay rent as a percentage of gross sales along with a small fixed payment for taxes and maintenance. St. Petersburg becomes the sixth corporate owned gaming center in our growing nationwide footprint.”
“The city of St. Petersburg is home to over 265,000 residents, of which over 66,000 are under the age of 24. We believe there is a tremendous opportunity in the local market to expand the reach of our gaming center. The current staff will remain in their roles as we move to grow Simplicity Esports’ customer base in the area.”
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Simplicity Esports’ acquisition of franchisee owned esports gaming centers allows Simplicity Esports to report the full revenues generated by the gaming centers on a conslidated basis. Previously, Simplicity Esports only reported the franchise royalty fee, calculated as 6% of gross sales, paid by franchisees.