Completion of the asset acquisition by DCB Sports

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.