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NEW YORK - Allied Gaming & Entertainment, Inc. (NASDAQ:AGAE) received a delisting notice from Nasdaq on June 18 for failing to hold an annual shareholder meeting within twelve months of its fiscal year end and not filing its Q1 2025 Form 10-Q on time, the company announced Wednesday.
AGAE has requested a hearing with a Nasdaq panel and a stay on any delisting action pending the panel’s decision. The company has scheduled its combined 2024/2025 annual meeting for August 4, 2025.
The entertainment company attributed these compliance issues to disruptions caused by activist shareholder Knighted Pastures LLC, led by Roy Choi. According to the company, Knighted launched two lawsuits over the past 18 months that required "significant allocation of management’s time and legal resources" and "materially delayed" the company’s ability to organize its annual meeting.
"These administrative delays were not the result of business performance or internal deficiencies, but were the unfortunate collateral consequence of actions taken by activist shareholder Knighted Pastures LLC," the company stated in a press release.
Allied Gaming, which focuses on providing experiences for gamers and concertgoers, maintains it has made "meaningful operational progress" in 2024 and 2025, including launching new entertainment initiatives and achieving revenue growth. InvestingPro data supports this claim, showing an 18.6% revenue growth in the last twelve months, though the company remains unprofitable. The company maintains strong liquidity with a current ratio of 3.11, indicating solid financial flexibility despite operational challenges. For deeper insights into AGAE’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering over 1,400 US stocks.
The company has retained Paul Hastings LLP as legal counsel, MacKenzie Partners as proxy solicitor, and ADDO IR as strategic communications advisor as it works to maintain its Nasdaq listing. With its stock currently trading above InvestingPro’s Fair Value estimate, investors seeking detailed analysis can find 12 additional key insights about AGAE on InvestingPro, including metrics on financial health, growth potential, and market positioning.
In other recent news, Allied Gaming & Entertainment Inc. disclosed that it has received a deficiency notice from Nasdaq due to delays in filing mandatory financial reports. The company failed to meet the deadlines for its Quarterly Report for the period ending March 31, 2025, and its Annual Report for the fiscal year ending December 31, 2024. Allied Gaming has until June 16, 2025, to submit a plan to regain compliance, with a potential extension until October 13, 2025, if approved by Nasdaq. Additionally, Allied Gaming has filed a lawsuit against Knighted Pastures, LLC, and its Managing Partner Roy Choi for alleged violations of federal securities laws. The lawsuit claims that Knighted Pastures accumulated a significant portion of Allied Gaming’s stock without proper disclosure. In a related development, Knighted Pastures has announced its intention to nominate candidates for Allied Gaming’s Board of Directors, a move that the company opposes. Allied Gaming argues that Knighted’s actions, including recent lawsuits, have diverted resources and harmed strategic partnerships. The company is working with legal and strategic advisors to address these challenges.
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