Esports Entertainment Group (EEG) has announced significant changes to its company, as its CEO has departed and it is exploring the possible sale of its igaming assets.
Beginning with EEG’s executive movements, Grant Johnson has left his position as Chairman and CEO of the company, effective December 3.
The Board of Directors has already identified several candidates as Johnson’s potential CEO successor and the evaluation process has begun.
The EEG board has also specified an interim/acting CEO and will name the individual in the coming days, pending formal approval by the Nominating and Corporate Governance Committee.
Meanwhile, Jan Jones Blackhurst will replace Johnson as the company’s new Chair of the Board of Directors. She is also a board member at Caesars Entertainment and a former mayor of Las Vegas.
“Grant recognized the value of esports and online gambling and founded EEG on that basis. On behalf of the board, we wish him well,” commented Jones Blackhurst.
“The company is looking forward to bringing in new leadership to work with Board to realize the full potential of our acquired esports businesses.”
EEG considering igaming assets sale
Regarding EEG’s igaming business, the company reflected on its progress to reduce costs in the vertical over recent months. They are also taking into consideration strategic options for assets that do not contribute to profits and cash flow. Last month, the company ceased operations of Vie.GG in New Jersey, the UK, and Spain.
One of the options is exploring the possibility of selling its igaming assets “due to increasing regulatory burdens and competition”. EEG added that one of the first tasks of its new CEO will be to assess the value and future of its igaming assets.
In other areas of its igaming business, EEG noted that it is expected to close the sale of its online casino business in Spain on December 12, with the proceeds being used “primarily to pay down the principal on the Senior Convertible Note”.
The company has also closed its Argyll iGaming operations in the UK and Ireland due to high costs and being unable to generate profits.
EEG is still pushing to remain publicly listed on Nasdaq, while also finding ways to maximize its esports assets and restructure its debt.