Global esports and entertainment company Allied Gaming and Entertainment, the parent company of Allied Esports, has announced a $6.6m (~£5m) strategic investment from private equity manager Yellow River Global Capital.
Alongside the investment, a new ‘strategic relationship’ between both companies will see Yellow River provide Allied Gaming with strategic resources, networking opportunities and industry expertise, according to a release.
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The investment from Yellow River will see the private equity manager subscribe to 6m shares of Allied Gaming’s common stock, par value $0.0001 per share.
Yellow River will also receive a ‘warrant’ which will enable the company to purchase up to 6m shares of Common Stock over the next five years at a 50% premium of Allied Gaming’s closing price as of October 17th, 2024.
The final part of the arrangement sees Yellow River receive the right to appoint a Class A Director to the Allied Gaming and Entertainment’s Board of Directors. Yellow River has selected Zongmin (Philip) Ding to fill that role.
Allied Esports, the company’s esports business unit, operates HyperX Esports Arena Las Vegas, an esports facility and the company’s global flagship venue. The company also operates Allied Esports Trucks, an 18-wheel mobile gaming arena.
Founded in 2016, Yellow River Global Capital is described as an ‘alternative private equity firm’ based in Asia. According to a release, the company specialises in development-focused investments in digital technologies, telecommunications, new energy and entertainment.
Yinghua Chen, CEO of Allied Gaming and Entertainment commented on the investment: “We are very excited to close this investment from Yellow River, who has expertise across a variety of industries and is adept at connecting, and growing businesses.
“Yellow River’s investment in AGAE will further enhance our ability to identify growth opportunities in location-based entertainment chains and the creation and acquisition of entertainment content intellectual property (IP). We are extremely confident that this partnership will bolster our growth potential as we continue building out the Allied ecosystem.”
