Esports Entertainment Suspends Monthly Dividend

Esports Entertainment Group (EEG) has made a significant announcement, suspending the monthly cash dividend for its outstanding 10% Series A cumulative redeemable convertible preferred stock. This move, effective immediately from December, has garnered much attention in the gaming and business world.

The decision to suspend the dividend comes after EEG had paid out the monthly dividend for November 2023, in accordance with the terms of its Series A preferred stock. The unpaid dividends will continue to accumulate, providing additional resources for future investments.

EEG's CEO, Alex Igelman, explained that this strategic decision is aimed at unlocking more capital to reinvest in the company's growth. He emphasized that this move will create greater value for shareholders in the long term. Igelman stated, "This is an exciting time for EEG, as we execute on our turnaround strategy and position the company for long-term success."

This announcement follows a challenging Q1 for EEG, which saw a significant 71.9% drop in revenue to $2.7 million due to the sale of its Bethard business earlier in the year. Despite the decrease in revenue, CEO Igelman remains optimistic about the company's long-term growth plans, highlighting the recent acquisition of a 30% minority interest in esports content producer Drafted.gg as a step toward achieving these ambitions. EEG's management and board of directors will closely monitor the company's financial performance to determine the right time to reinstate the dividend.