Allied Esports Entertainment, Inc., on Tuesday said its virtual special meeting of stockholders, scheduled for June 28, was convened and adjourned without any business being conducted – mainly the proposed sale of the World Poker Tour – due to the lack of a quorum.
As previously reported by Gaming America, the meeting was supposed to allow stockholders to consider and approve AESE’s sale of 100% of the outstanding capital stock of Club Services, Inc., (CSI) to Element Partners, LLC.
CSI is an indirect wholly owned subsidiary of AESE that directly or indirectly owns 100% of the outstanding capital stock of each of the legal entities that collectively operate or engage in the company’s poker-related business and assets.
Allied Esports Entertainment was formed by the combination of Allied Esports and the World Poker Tour via a stock purchase agreement announced in March.
On June 11, AESE released a notice stating Ourgame International Holdings Limited, the company’s largest stockholder, beneficially owning approximately 30.6% of AESE’s outstanding common stock through Primo Vital Limited, its wholly owned subsidiary, had advised the company that the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited, on which Ourgame’s stock is listed, required Ourgame to obtain approval from its stockholders prior to voting its shares of AESE’s common stock owned by Primo at the special meeting.
Ourgame scheduled an extraordinary general meeting of its stockholders to consider the approval of the WPT sale transaction, but that meeting was scheduled to take place on June 30, Hong Kong time, after the date of the AESE special meeting.
Because there were insufficient votes to approve the WPT sale transaction at the special meeting, AESE was forced to adjourn the special meeting to a date after the Ourgame meeting.
On Tuesday, AESE said the special meeting now is scheduled to reconvene on July 1. The company said the delay will allow more opportunity for stockholders to vote on the proposals described in the AESE’s definitive proxy statement filed with the Securities and Exchange Commission (SEC) on June 1.
The record date for the special meeting remains May 27. Stockholders of record as of that date may vote at the reconvened special meeting, either by proxy or via the internet. Stockholders who previously submitted their proxy or otherwise voted and who do not want to change their vote need not take any action, the company said.
