NEW YORK, April 16, 2026 (GLOBE NEWSWIRE) — Allied Gaming & Entertainment Inc. (NASDAQ: AGAE, “Allied” or the “Company”) today issued this supplemental update in light of the elevated trading volume in the Company’s common stock following its previously announced strategic transformation update. The Board of Directors is providing additional information regarding the Company’s shareholder value protection principles, the current status of certain strategic initiatives, and related market and execution risks. As previously disclosed, the Company’s strategic transformation remains focused on two principal areas: Digital Infrastructure and Token-Enabled Asset Platforms and AI-Driven Consumer and Token-Enabled Ecosystem.
Board Position on Shareholder Value Protection and Future M&A-Related Issuance Pricing
The Board has considered the relationship between the Company’s current market trading price and its view of the Company’s underlying value, including its net asset position, creditor-related value, public company platform value, and the potential value associated with its strategic transformation initiatives. Consistent with its responsibility to protect the interests of existing shareholders, the Board has determined that, in evaluating any future issuance of equity securities in connection with potential mergers, acquisitions, asset integrations, or similar strategic transactions, it intends to apply a disciplined and shareholder-focused approach to pricing.
Based on the Board’s current assessment, the Board does not currently expect to approve future M&A-related share issuances below $2.00 per share, a level it believes better reflects the Company’s net asset value, creditor-related value, and overall public company platform value, and implies a pre-transaction equity value of at least $80 million.
The Company cautions, however, that the foregoing reflects the Board’s current internal reference position for purposes of evaluating future potential transactions and should not be interpreted as a commitment to consummate any transaction, a representation regarding the intrinsic value of the Company, or a prediction, guarantee, or commitment with respect to the market price of the Company’s securities. The pricing of any future transaction will depend on a variety of factors, including, without limitation, transaction structure, the nature and quality of the target assets or businesses, due diligence findings, prevailing market conditions, Board approval, and applicable legal and regulatory requirements.
Update on Strategic Transaction Activity
With respect to the Company’s fiber-optic network infrastructure, optical communications, and computing power resources strategic track, the Company has entered into a non-binding letter of intent with respect to a defined acquisition opportunity and is actively proceeding with related due diligence, valuation analysis, and transaction structuring. The related work is being conducted with the assistance of the Company’s investment banking and legal advisors. Because the contemplated opportunity involves high-value fiber-optic network infrastructure assets and a complex transaction structure, including diligence, valuation, structuring, and documentation matters, the process remains subject to ongoing review. The Company currently expects to provide an update on progress by the end of April, although no assurance can be given as to timing, outcome, or whether definitive agreements will be entered into.
With respect to the Company’s AI-driven consumer applications and token-enabled ecosystem strategic track, the Company is in active discussions with multiple AI-related projects that the Company believes have mature product profiles, existing user bases, and meaningful commercialization potential. Areas under discussion include, among others, AI application platforms, user-growth-oriented digital products, AI education-related initiatives, and token-enabled ecosystem models. The Company currently expects the due diligence, negotiations, and documentation work presently underway in respect of such opportunities to progress substantially during May 2026.
The Company intends to provide further updates regarding these strategic initiatives if and when material developments occur and to the extent required by applicable law and Nasdaq listing requirements.
Market Activity and Risk Disclosure
The Company notes that trading volume in its common stock increased materially following the release of its prior strategic transformation announcement. The Company reminds investors that market price and trading volume may be affected by a variety of factors, including, without limitation, investor sentiment, liquidity conditions, speculative or momentum-driven trading activity, macroeconomic conditions, industry developments, and short-term reactions to public disclosures, and may not reflect the Company’s underlying business fundamentals, the status of strategic discussions, or future operating performance.
The Company further cautions that the potential transactions, strategic initiatives, and development plans referenced above — including potential acquisitions, asset integrations, strategic partnerships, digital asset platform initiatives, and Allied Coin-related plans — may involve significant legal, financial, tax, technical, operational, data, intellectual property, securities, digital asset, antitrust, cross-border regulatory, national security, and other review and compliance considerations. Accordingly, there can be no assurance as to whether any such matter will proceed, whether definitive documentation will be executed, whether required approvals will be obtained, or whether implementation will occur within any expected timeframe or at all.
Investors are urged to exercise caution, to consider the risks associated with unusual market volatility, and not to make investment decisions based solely on short-term trading activity or market sentiment.
Ongoing Disclosure
The Company will continue to comply with applicable laws, regulations, and Nasdaq listing requirements and will make such further disclosures regarding material developments, definitive agreements, approvals, and other required matters as and when appropriate.
About Allied Gaming & Entertainment Inc.
Allied Gaming & Entertainment Inc. (NASDAQ: AGAE) is a global experiential entertainment company undergoing a strategic transformation into an integrated digital ecosystem platform, with a focus on digital infrastructure, artificial intelligence, and technology-enabled growth opportunities.
Contact:
Investor relations: [email protected]
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