Nucor earnings beat by $0.08, revenue fell short of estimates
NEW YORK - Allied Gaming & Entertainment, Inc. (NASDAQ: AGAE), a global experiential entertainment company, has publicly addressed recent demands from stockholder Ourgame International Holdings Limited and a request from Knighted Pastures LLC regarding the acquisition of additional shares and changes to the company's governance.
Today, AGAE released a statement confirming it had received a letter from Ourgame, which holds shares in the company, demanding the right to purchase more shares and amend AGAE's Bylaws in line with a 2018 merger agreement. AGAE's Board of Directors has rejected these demands, citing that they are not in the best interest of the company and its stockholders, and that they are inconsistent with Ourgame's legal rights and the terms of the merger agreement. AGAE has sent a detailed response to Ourgame explaining the legal and fiduciary reasons for this rejection.
Additionally, Ourgame has proposed two candidates for AGAE's Board of Directors. The company's Nominating and Corporate Governance Committee is set to review the qualifications of these nominees and will announce its findings in the future.
Knighted Pastures LLC has also filed a Schedule 13D, requesting AGAE to schedule its 2024 Annual Meeting of Stockholders. In compliance with Nasdaq's listing requirements, AGAE plans to hold this meeting by December 31, 2024, and will inform its stockholders of the date through its definitive proxy statement.
AGAE's Board remains committed to acting in the best interests of the company and its shareholders, aiming for long-term success. The company's next steps include reviewing the director candidates and preparing for the upcoming Annual Meeting.
This information is based on a press release statement from Allied Gaming & Entertainment, Inc.
"In other recent news, Allied Gaming & Entertainment Inc. reported mixed results for Q2 2024. An 11% increase in revenue from Q1 was noted, yet a significant 19% decline from the same period the previous year was reported. The company also experienced a net loss of $3.9 million and an adjusted EBITDA loss of $1.4 million due to increased expenses, primarily from litigation costs from a hostile takeover attempt by Knighted Pastures.
In other developments, Allied Gaming reached a settlement agreement with BPR Cumulus LLC, an affiliate of Brookfield Property Partners (NASDAQ:BPY), terminating their previous share purchase agreement. This decision led to the release of $5 million held in escrow, with $3 million returning to the Investor and $2 million to Allied Gaming.
Allied Gaming also launched the World Mahjong Tour and received positive feedback on Z-Tech's new mobile game, Balloon Pop Mania. The company's cash and short-term investments totaled $95.2 million, thanks to loans from Morgan Stanley Bank Asia Limited. These are the recent developments for Allied Gaming & Entertainment."
InvestingPro Insights
As Allied Gaming & Entertainment (AGAE) navigates these governance challenges, InvestingPro data offers additional context to the company's financial position. AGAE's market capitalization stands at $48.3 million, reflecting its current valuation in the market.
InvestingPro Tips highlight that AGAE holds more cash than debt on its balance sheet, which could be a strategic advantage as it deals with stockholder demands and potential governance changes. This strong liquidity position is further supported by the fact that AGAE's liquid assets exceed its short-term obligations.
However, investors should note that AGAE is quickly burning through cash and has not been profitable over the last twelve months. This financial strain may influence the company's decision-making process regarding stockholder requests and board composition.
The stock has experienced a large price uptick over the last six months, with a 28.57% total return. This positive momentum could attract more attention from investors and potentially impact the upcoming Annual Meeting discussions.
For those interested in a deeper analysis, InvestingPro offers 5 additional tips that could provide further insights into AGAE's financial health and market position.
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