Statement Regarding the Company’s Attention to Unusual Short-Selling Activity and Responsive Measures

NEW YORK, April 21, 2026 (GLOBE NEWSWIRE) -- Allied Gaming & Entertainment Inc. (NASDAQ: AGAE, “Allied” or the “Company”) today announced that its Board of Directors has taken note of unusual volatility in the trading of the Company’s common stock in the secondary market and has received market analysis information from Woprai, a third-party AI and Machine Learning data analysis institution regarding short-selling activity in the Company’s stock. According to such third-party analysis, short-sale trading in the Company’s stock represented a relatively high percentage of overall trading during a certain period, and the Company has taken note of this matter with a high degree of attention.

In order to protect the lawful interests of the Company and all of its shareholders, the Board has promptly established a special committee and working mechanism, and has authorized the relevant professional teams to conduct further review and evaluation of trading activity in the Company’s stock. The Company intends to take appropriate measures to address any potentially abnormal trading activity, market manipulation, or other market conduct that may harm the interests of the Company or its investors. If, in the course of its review, the Company identifies suspicious trading activity that should be brought to the attention of regulatory authorities, the Company will promptly report such matters to, and cooperate with, the U.S. Securities and Exchange Commission (the “SEC”), Nasdaq, and other relevant regulatory or law enforcement authorities, as appropriate.

At the same time, the Company is actively evaluating and considering appropriate compliance-focused response measures in relation to unusual short-selling risks and suspicious trading activity, and will continue to engage professional service providers, including legal counsel, capital markets advisors, and other relevant professionals, to provide support with respect to market response, compliance procedures, and investor protection matters, in order to ensure that the Company is able to take appropriate action in a lawful, compliant, and timely manner.

The Board further notes that the Company’s current asset base and liquidity position remain solid. Based on the Company’s existing cash, short-term investments, marketable securities, and overall balance sheet position, the Board does not currently believe that a reverse stock split is necessary to support the Company’s listing compliance. The Company intends to continue to evaluate capital markets matters prudently and in a manner consistent with the long-term interests of shareholders, and will make such further disclosures as may be required by applicable law or deemed appropriate.

The Company reminds investors that secondary market prices and trading volume may be affected by a variety of factors, including market sentiment, changes in liquidity, speculative trading activity, and external market conditions. The Company will continue to closely monitor market trading activity and will disclose material developments to the market in a timely manner, as appropriate. Investors are urged to exercise independent judgment and to be mindful of investment risks.

Forward-Looking Statements

Some of the statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, the results of the review of the trading activity in the Company’s common stock. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including ‘believes,’ ‘estimates,’ ‘anticipates,’ ‘expects,’ ‘plans,’ ‘projects,’ ‘intends,’ ‘potential,’ ‘may,’ ‘could,’ ‘might,’ ‘will,’ ‘should,’ ‘approximately’ or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed under Item 1A. “Risk Factors” in our most recently filed Form 10-K filed with the Securities and Exchange Commission (“SEC”) and updated from time to time in our Form 10-Q filings and in our other public filings with the SEC. Any forward-looking statements contained in this release speak only as of its date. We undertake no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

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: ir@alliedgaming.gg

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