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NEW YORK - Allied Gaming & Entertainment, Inc. (NASDAQ:AGAE), a global entertainment company, today announced it has received a notice from Knighted Pastures, LLC of its intention to nominate candidates for election to AGAE’s Board of Directors at the upcoming combined 2024/2025 annual stockholders meeting.
The company has expressed strong opposition to Knighted’s move, stating that the nomination aims to take control of AGAE without providing any premium to its shareholders. While AGAE’s current Board, which the company describes as highly qualified and engaged, is said to have the necessary experience to execute the company’s business strategy effectively, InvestingPro analysis indicates the company faces profitability challenges, with negative EBITDA of $9.4 million in the last twelve months. However, AGAE maintains a strong liquidity position with a current ratio of 2.57, suggesting adequate resources to meet short-term obligations.
AGAE contends that Knighted’s actions, including two recent lawsuits, have not only drained financial resources but also diverted management’s focus from business growth, potentially harming shareholder value. The company also claims that Knighted’s tactics have damaged relationships with important strategic partners, which are vital for AGAE’s long-term growth.
Despite AGAE’s efforts to reach a peaceful resolution by offering Knighted seats on the Board, the invitation was declined. Knighted instead demanded immediate and complete control, which AGAE refused, citing the need to protect shareholder interests.
AGAE stockholders have been advised that no immediate action is required on their part. The Board will review Knighted’s materials and make a recommendation in the company’s proxy statement and accompanying WHITE proxy card, to be filed with the U.S. Securities and Exchange Commission and distributed to eligible AGAE stockholders. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 12 additional exclusive tips and a detailed Pro Research Report, helping investors make more informed decisions during this period of corporate governance transition.
The company has retained Paul Hastings LLP as legal counsel, MacKenzie Partners, Inc. as proxy solicitor, and ADDO IR as strategic communications advisor in response to these events.
This announcement is based on a press release statement from Allied Gaming & Entertainment, Inc.
In other recent news, Allied Gaming & Entertainment, Inc. has received a deficiency notice from the Nasdaq Stock Market for failing to meet its financial reporting obligations. The company did not file its Quarterly Report for the quarter ending March 31, 2025, by the required deadline, nor has it filed its Annual Report for the fiscal year ending December 31, 2024. This has led to a potential delisting threat unless Allied Gaming can present an acceptable compliance plan by June 16, 2025. If the plan is approved, the company could receive an extension until October 13, 2025, to submit the overdue reports. Despite this notice, there has been no immediate impact on the trading of its common stock. Allied Gaming has stated its intention to file the missing reports before the June deadline, though there is no guarantee that Nasdaq will accept its plan. Investors and regulatory bodies are keeping a close watch on the company’s efforts to address these compliance issues.
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