Diverted River is an entertainment technology organization (“ETO”) created by the founders ofggCircuit.ggCircuitwas sold toListed on NASDAQEsports Entertainment Group for $26,000,000 in 2021.
Boca Raton, Fla., Sept. 29, 2022 (GLOBE NEWSWIRE) — Simplicity Esports and Gaming Company ( OTCQB:WINR ) (“Simplicity Esports”) entered into an exchange agreement with Diverted River Technology, LLC (“Diverted River”), pursuant to which Simplicity Esports agreed to acquire 100% of the interests of Diverted River in exchange for 80% of the issued and outstanding shares of Simplicity Esports common stock.
Roman Franklin, CEO of Simplicity Esports, said, “I am thrilled at the prospect of working with Zack Johnson and his incredible team. Their previous company, ggCircuit, had software and services that dominated the esports game center industry space. Their experience, relationships and reputation provide a solid foundation to build Diverted River into a powerful company that serves the technology needs of the broader $35 billion family entertainment center industry.
Post-closing, it is expected that Simplicity Esports’ name will be changed to Diverted River Technology, Inc., and Simplicity Esports’ business will become that of Diverted River, an ETO focused on a sustainable, high-margin, and recurring revenue. model that requires limited capital expenditure. It is also expected that Mr. Johnson, CEO of Diverted River, will become CEO of the public company after closing.
Zack Johnson, CEO of Diverted River, added, “We met Roman and Simplicity Esports three years ago when four different companies offered to buy our esports software company, ggCircuit. Simplicity Esports was a great client of ggCircuit and we are impressed with Roman and his business and financial intelligence in the public market. Now that we are expanding our platform experience to a 10x larger entertainment market, we are excited to join forces and launch our new platform together as Diverted River in 2023.”
“Our team now has just under 80 million hours of use on our software platforms over the past 20 years in public and high-level spaces across retail, educational and esports venues. “, continued Johnson. “The family entertainment center (“FEC”) industry is technologically fragmented and uses 15-17 software tools per company to manage their backend and customer experience. They are served by slow software vendors using outdated technology stacks that are holding these companies hostage with hardware and software. We plan to turn this industry around and provide solutions that allow sites to have open-market hardware choices and robust integration points with software platforms. synergistic.
The transaction, which is expected to close before the end of the year, is subject to standard closing conditions, including the repayment of certain debts and the achievement of a minimum amount of working capital.
About Simplicity Esports and Gaming Company:
Simplicity Esports and Gaming Company (WINR) owns 5 esports gaming centers and is the franchisor of 12 esports gaming centers that provide the public with the opportunity to experience gaming and esports in competitive and casual social settings, whatever regardless of their skills or experience. Simplicity-branded teams compete in popular games like Heroes of the Storm®. Simplicity Esports also organizes and hosts various in-person events and plays at home, online tournaments.
Heroes of the Storm® is a registered trademark of its owner.
About Diverted River Technology LLC:
Diverted River is an ETO for the location-based entertainment (“LBE”) industry. Diverted River provides integration through its proprietary cloud-based user platform called Takoha into a host of entertainment, business, data and management systems to help LBE managers and owners deliver a seamless experience to their customers while compiling all of their customer data into a single analytical system.
This press release contains statements that constitute “forward-looking statements”. Forward-looking statements are subject to numerous conditions, many of which are beyond Simplicity Esports’ control, including those set forth in the Risk Factors section of Simplicity Esports’ Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on September 27, 2022 and our subsequent SEC filings, as amended or updated from time to time. Copies of Simplicity Esports’ filings with the SEC are available on the SEC’s website. at the address www.sec.gov. Simplicity Esports assumes no obligation to update these statements for revisions or changes after the date of this posting, except as required by law.
Contact Simplicity Esports:
Chief executive officer
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