Esports Entertainment Group (EEG) has suspended payment of the monthly cash dividend on its outstanding 10% Series A cumulative redeemable convertible preferred stock.
The monthly dividend was payable in December. However, EEG said its board has now confirmed this will be suspended.
The business paid the monthly dividend for November 2023, as announced last month. In line with Series A preferred stock terms, unpaid dividends will continue to be accrued.
EEG chief executive Alex Igelman said the suspension will free up more capital for EEG to reinvest in the business. He added that this would create greater value for shareholders in the long run.
