Super League divests Minecraft asset to focus on core business

SANTA MONICA, Calif. - Super League (NASDAQ:SLE), a company specializing in playable media and content solutions, announced today the sale of its Minecraft property, InPVP, to Mineville LLC. This all-cash deal is in line with Super League’s strategy to streamline its operations and reduce costs. According to InvestingPro data, the company has been facing significant financial challenges, with revenue declining by 43% in the last twelve months and a concerning cash burn rate.

Mineville LLC, a firm already established in the Minecraft Java server space, views this acquisition as an opportunity to expand into the Bedrock version of the game, which boasts a larger player base. With this transaction, Super League will become Mineville’s exclusive partner for brand partnerships and advertising sales, boosting its reach to over 8 million monthly active users. The deal comes at a crucial time for Super League, whose stock has declined by 87% over the past year, with InvestingPro analysis indicating the stock is currently undervalued.

According to Matt Edelman, President & CEO of Super League, the sale of InPVP aligns with their goal to concentrate on providing playable media solutions to global brands. "This divestiture allows us to further reduce operational costs and is complimentary to other initiatives we have taken to focus our business," said Edelman.

The collaboration between Super League and Mineville LLC aims to deliver creatively inspired in-game programs that align with targeted campaign objectives, providing clients with measurable engagement.

Mohamed Weheba, co-founder of Mineville LLC, expressed enthusiasm for the growth prospects of InPVP, citing a decade-long history of building within the Minecraft ecosystem.

Super League, redefining brand engagement through playable media, leverages proprietary technology and a network of native creators to offer unique advertising and content experiences within mobile games and immersive gaming platforms.

This move is expected to enhance Super League’s operational efficiency and focus on its core business segments. With a current market capitalization of just $2.9 million and an overall Financial Health Score rated as "WEAK" by InvestingPro, the company faces significant challenges ahead. The information for this report is based on a press release statement and InvestingPro data, which offers 16 additional key insights about Super League’s financial position through its comprehensive Pro Research Report.

In other recent news, Super League Enterprise, Inc. announced the pricing of its public offering at $0.17 per share, with the aim of raising approximately $869,999 before fees and expenses. The offering includes 5,117,647 shares of common stock and an option for the underwriter to purchase up to an additional 767,647 shares, potentially bringing total gross proceeds to $1 million. The company plans to use the proceeds for general corporate purposes, working capital, and partial debt repayment. In another development, Super League has been notified by the Nasdaq Stock Market about its non-compliance with the minimum stockholders’ equity requirement for continued listing. The company’s equity has fallen to $170,000, significantly below the $2.5 million threshold. Super League has expressed its intention to submit a compliance plan to Nasdaq within 45 days, which could grant them up to 180 days to regain compliance if accepted. These developments come as Super League navigates challenges in maintaining its Nasdaq listing while executing its public offering.

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