Allied Esports Entertainment withdraws proposed public offering of common stock

Allied Esports Entertainment, an esports entertainment company, announced that it will not proceed with the public offering of its common stock previously announced on 29 January 2020. The Company will withdraw its registration statement on Form S-1 (File No. 333-235602) relating to the proposed offering, which had previously been filed with the U.S. Securities and Exchange Commission but has not yet become effective. In addition, Allied Esports also announced that the chairman of its board of directors, Lyle Berman, has committed to purchase newly issued shares of Allied Esports common stock. Pursuant to an agreement, the company may sell Berman shares for aggregate gross proceeds of up to $2.0 million upon exercising an option to do so prior to 9April 2020. Berman has agreed not to sell, pledge, transfer or otherwise dispose of these shares for a period of six months commencing on the date of issuance. The Company has no obligation to sell shares to Berman under this arrangement. To the extent it exercises its option, the Company plans to use the proceeds from the common stock sale for working capital and general corporate purposes. This press release shall not constitute an offer to sell or the solicitation of an offer to buy common stock or any other securities of Allied Esports in any jurisdiction.