The information contained within this
announcement is deemed by the Company to constitute inside
information stipulated under the Market Abuse Regulation (EU) No.
596/2014, as retained as part of the law of England and Wales. Upon
the publication of this announcement via the Regulatory Information
Service, this inside information is now considered to be in the
public domain.
Press
release
16 October 2024
Guild Esports PLC
("Guild Esports",
"Guild" or "the Company")
Completion of the asset acquisition by
DCB Sports LLC
Board change
Change of Name
Further to the announcement of 5 August 2024,
the Directors of Guild Esports (LSE: GILD) inform shareholders that
DCB Sports LLC ("DCB Sports") has acquired 100% of the assets of
Guild Esports in exchange for assuming all disclosed liabilities of
the Company, which stand in excess of £2 million, and an immediate
cash payment of £100,000 to the PLC ("the Transaction").
DCB Sports will assume and run the Guild brand
through a new entity, Guild Esports and Gaming Ltd., and will be
responsible for providing the necessary future working capital to
allow the business to operate from a stable financial platform, and
further develop its existing partnerships with studios and
creatives domestically and abroad. The £100,000 cash payment will
be used as working capital for Guild Esports PLC while the
Directors review and consider the next steps for the Company.
Further announcements will be made, as appropriate, in due
course.
Background
On 28 June 2024, Guild announced a material
uncertainty that cast significant doubt on the Company's ability to
continue as a going concern. This uncertainty was despite a
successful cost-cutting programme which saw costs fall 38% year on
year, and following Guild cutting £3.5m of costs between 2022 and
2023 (as announced on 31 January 2024).
The Directors took decisive measures to
safeguard the Company's position and future prospects through
immediately enacting a strategic review into Guild's financial
position with a view to protecting shareholder value. On 1 August
2024, Guild announced the preliminary results of the review, and
that the Company was exploring a range of options to allow Guild to
meet its liabilities as they fell due. These options have included
equity fundraising (both from external investors and Guild
management), the securing of loans, proactive revenue-generation
strategies and aggressive cost-cutting measures.
However, despite continued efforts, Guild has
exhausted all alternative fundraising and financing opportunities
which would allow the Company's continued operation in its current
form. The Board of Directors therefore believe that the Transaction
is the best course of action available for the Company given its
current financial position and the anticipated future capital needs
of the business. The Transaction also provides certainty to the
Company's staff, customers and suppliers which have been integral
to the development of the Guild brand and business.
Board
change
With effect from completion of the Transaction,
Guild's Chief Executive, Jasmine Skee, has taken the decision to
resign from the Company and step down from the Board of Directors
with immediate effect to pursue new opportunities. The Board
sincerely thanks Ms Skee for her significant contributions and
strategic leadership of the Company under difficult conditions, and
in particular, her efforts in completing the Transaction. Following
Ms Skee's resignation, the board will comprise Derek Lew and Brian
Stockbridge, the Company's non-executive directors.
Change of
Name
The Board has resolved to change the name of
the Company to Cassel Capital PLC to avoid confusion with Guild
Esports and Gaming Ltd following completion. A further announcement
will be made when the name change becomes effective.
For further information, please
contact:
Guild
Esports
|
|
Brian
Stockbridge
Non-Executive Director
|
via Tancredi
+44 207 887 7633
|
Tancredi
Intelligent Communication
Media Relations
|
|
Charlie
Hobbs
Antonia
Williams
guild@tancredigroup.com
|
+44 7897 557
112
+44 7572 188
774
|
About Guild
Esports:
Guild Esports PLC is a global gaming-focused
media business that fields professional players in gaming
competitions under the Guild banner. Our in-house training academy
aims to attract and nurture the best esports talent, and our goal
is to provide the ultimate entertainment experience alongside a
distinctive lifestyle brand authentic to the esports community
worldwide. Guild is led by an experienced management team of
entertainment sector and esports veterans and co-owned by David
Beckham. The Company is headquartered in the UK and its shares are
listed on the Main Market of the London Stock Exchange (ticker:
GILD). Please visit www.guildesports.com for more
information.
About DCB
Sports:
DCB Sports, LLC is a global holding company
dedicated to sports ownership. We invest in early and growth stage
sport teams, leagues and sports-adjacent companies with strong
leadership, clear vision, game changing product differentiation and
identifiable competitive advantage. We believe sports, media,
entertainment, music, film and fashion are all converging, creating
new opportunities for collaboration and experiential innovation for
the consumer. The Company is headquartered in La Jolla, California
in the USA. Please visit www.dcbsportsllc.com for more
information.