Completion of the asset acquisition by DCB Sports
16/10/2024 07:00
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RNS Number : 3250I Guild Esports PLC 16 October 2024
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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 via Tancredi +44 207 887 7633
Non-Executive Director
Tancredi Intelligent Communication
Media Relations
Charlie Hobbs +44 7897 557 112
Antonia Williams +44 7572 188 774
guild@tancredigroup.com
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.
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