Allied Gaming & Entertainment Announces Purchase Agreement with Blue Planet New Energy Technology Limited

On October 18, 2024, Allied Gaming & Entertainment Inc. (NASDAQ: AGAE) entered into a Securities Purchase Agreement with Blue Planet New Energy Technology Limited for the sale and issuance of 6,000,000 shares of common stock at a purchase price of $1.10 per share. This transaction, totaling $6,600,000, also includes a warrant to purchase up to 6,000,000 shares of Common Stock at an exercise price of $1.80 per share, representing a 50% premium to the closing sales price of the Common Stock on October 17, 2024.

The Purchase Agreement stipulates that the Purchaser has the right to appoint or nominate a qualified director to the Board of Directors of Allied Gaming & Entertainment for a 30-day period following the closing of the Transaction. The agreement further restricts the Purchaser and its affiliates from beneficially owning more than 19.99% of the outstanding Common Stock after the exercise of the Warrant without obtaining shareholder approval.

Additionally, the Company has agreed to register the resale of Registrable Securities pursuant to a registration statement under the Securities Act of 1933. A press release dated October 23, 2024, was issued by the Company to announce the Purchase Agreement.

In line with the Purchase Agreement, Mr. Zongmin (Philip) Ding was appointed as a Class A director of the Board, effective upon the Transaction closing. Mr. Ding brings a wealth of experience, having held various managerial and directorial positions at Shanghai Qinshui Family Business Management Co., Shanghai Guo Chun Venture Capital, Guo Tai Jun An Securities, PricewaterhouseCoopers, Shanghai International Group Venture Capital, Seagull Kitchen and Bath Products Co., Ltd., and Datong Taicera Ceramic Industry Co., Ltd.

At present, Mr. Ding has not been assigned to any Board committees, with the Board intending to review committee memberships in due course. He will receive standard compensation for non-employee directors, and there are no familial ties between Mr. Ding and any Board members or individuals nominated to directorial or executive positions.

The full terms of the Purchase Agreement and related Warrant can be accessed in Exhibit 10.1 and Exhibit 4.1 attached to the Current Report on Form 8-K. The press release concerning the Purchase Agreement is available as Exhibit 99.1.

This report is filed in compliance with Item 1.01 and Item 5.02 of Form 8-K, detailing the Company’s entry into a material definitive agreement and the election of Mr. Ding to the Board of Directors, respectively.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Allied Gaming & Entertainment’s 8K filing here.

Allied Gaming & Entertainment Company Profile

Allied Gaming & Entertainment Inc provides entertainment and gaming products worldwide. It operates esports properties to connect players and fans through a network of connected arenas; a flagship gaming arena located at the Luxor Hotel in Las Vegas, Nevada; a mobile esports truck that serves as a battleground and content generation hub; and a studio for recording and streaming gaming events.