AGAE News & Events

Allied Gaming & Entertainment provided an update to shareholders regarding a January 5, 2026 order issued by the United States District Court for the Central District of California in the Company's litigation against Knighted Pastures, and related parties. In its order, the Court granted Allied's unopposed motion for leave to amend its complaint, permitting the Company to proceed with its amended pleadings, and denied as moot all pending motions to dismiss previously filed by the defendants. The Court also granted Allied's unopposed motion to modify the previously issued preliminary injunction. Specifically, the Court vacated those provisions of the injunction that had temporarily restricted the holding of a board election and required compliance with certain external orders, noting that the defendants had ended their proxy contest and that the underlying purpose of those provisions had therefore been served. All remaining provisions of the preliminary injunction remain in effect until further order of the Court.

Allied Gaming & Entertainment acknowledged its awareness of a recent public disclosure issued by Ourgame International Holdings Limited concerning legal actions and investigations involving Frank Ng, a former chief executive officer of AGAE. "AGAE takes such disclosures seriously and will continue to closely monitor the development and outcomes of any related investigations and legal proceedings as information becomes available through public and lawful channels. In addition, AGAE confirms that it will review and investigate, as appropriate, any matters potentially relevant to the period during which Ng served as Chief Executive Officer of AGAE, including during the construction and development phase of the Company's flagship esports arena in Las Vegas. Any review will be conducted in accordance with applicable laws, governance standards, and the advice of independent legal and professional advisers," the company said

The company said, "The Company has observed unusually elevated levels of short-selling and speculative trading activity in recent periods, resulting in a share price that management believes has diverged materially from Allied's asset base and intrinsic value. To ensure transparency and avoid market misinterpretation, the Board of Directors and management issue the following update. As disclosed in the Company's most recent Form 10-Q for the quarter ended September 30, 2025: Total assets exceed $106.7M; Cash, cash equivalents and short-term investments total approximately $53.8M; Shareholders' equity is approximately $56.9M; By contrast, the Company's current market capitalization of approximately $14M represents: Roughly 25% of its net asset value; and Less than 30% of the value of its cash and short-term investments This valuation disparity highlights a disconnect between trading behavior and underlying fundamentals, which management believes is largely influenced by short-term transactional dynamics rather than long-term business performance. Some investors may have noted higher operating expenses during the reporting period. To clarify: 1.The increase primarily reflects costs associated with a prolonged shareholder control dispute, 2.Which is exceptional and non-recurring, and 3.Does not reflect deterioration in operating capability. Despite this external pressure, management has: Continued optimizing its cost structure; Improved efficiency of strategic capital deployment; and Maintained stable operational progress. Additionally, through disciplined asset management, the Company generated more than US$3.5 million in interest and investment income during the first nine months, demonstrating a resilient financial foundation capable of supporting growth initiatives. The Company remains focused on: Expanding higher-margin experiential and live entertainment businesses; Advancing monetization models and digital-first initiatives; Pursuing selective, synergistic investment opportunities. With liquidity of over $53M, management believes it is well positioned to execute its growth strategy without operational pressure from short-term market fluctuations. Short-selling and market volatility frequently reflect emotional short-term trading behavior. Accordingly, the Company advises shareholders and investors to: Exercise caution toward unverified commentary or rumors; Evaluate Allied based on official disclosures, asset strength, and strategic direction; Focus on long-term value rather than short-term price movement."

Allied Gaming & Entertainment provided an update regarding its litigation against Knighted Pastures, Roy Choi, his mother Naomi Choi, and Yiu-Ting So, a long-time business associate of Choi. On August 12, the United States District Court for the Central District of California issued its full order on preliminary relief. In that order, the Court stated that "Allied has demonstrated it is reasonably likely to establish the Knighted Parties formed a group with Naomi Choi and Yiu-Ting So, under Section 13(d), and succeed on the merits of its claims." Based on the findings reflected in the Court's order, the company's board of directors has made a preliminary determination that the Knighted Group, including Knighted and Roy Choi, triggered the company's shareholder rights plan, which was adopted and announced on February 9, 2024. In response to inquiries and requests from multiple shareholders of the company regarding the implications of the Court's order and the rights plan, the board of directors currently intends to include a proposal at the next annual meeting seeking stockholder approval to confirm and ratify the board's preliminary determination that Knighted and Roy Choi triggered the rights plan and authorize the board of directors to determine and implement any appropriate actions or mechanics related to the enforcement of the rights plan. The board's determination is preliminary and will fully consider and take into account the views of shareholders and relevant professional advisors. The board ultimately may not include a proposal at the annual meeting regarding the rights plan.