Simplicity Esports and Gaming Company has signed definitive documents to acquire three additional franchisee-owned esports gaming centers in California and Washington.
The closing of these acquisitions gives Simplicity a total of nine corporate-owned and 20 franchisee-owned gaming centers open and operational. 12 other franchisee-owned gaming centers remain closed due to government-imposed restrictions.
“COVID-19 related social distancing and capacity restrictions have had a negative impact on traffics counts for some of our gaming centers, but other locations are having record setting months for membership sales. One of our corporate owned gaming centers in Texas sold a record number 37 new memberships so far during the month of October,” Roman Franklin, President of Simplicity Esports, said.
“2020 has presented us with an amazing opportunity to invest in the acquisition of gaming centers while simultaneously capitalizing on disruptions in commercial real estate that allow us to sign new five to 10 year leases with rent calculated as a percentage of gross sales. The EBITDA profile of the acquisitions is attractive to Simplicity because of the reduction of the largest fixed expense through the signing of new percentage rent leases. These acquisitions allow Simplicity Esports to report the full revenues generated by these gaming centers on a consolidated basis,” Roman Franklin added.