Allied Gaming Addresses Speculative Trading, Notes Share Price Divergence, Reaffirms Strong Asset Base And Strategy

Allied Gaming & Entertainment Inc. (NASDAQ:AGAE) (the "Company") today issued a statement to shareholders and the investment community regarding recent market activity and to reinforce management's confidence in the Company's financial position and strategic outlook.

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.

Current Market Valuation Is Misaligned with Financial Fundamentals

As disclosed in the Company's most recent Form 10-Q for the quarter ended September 30, 2025:

-Total assets exceed US$106.7 million

-Cash, cash equivalents and short-term investments total approximately US$53.8 million

-Shareholders' equity (net assets) is approximately US$56.9 million

By contrast, the Company's current market capitalization of approximately US$14 million 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.

Expense Changes Reflect Extraordinary Events, Not Operational Weakness

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.

Strategic Direction Is Clear and Supported by Strong Resources

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 US$53 million, management believes it is well positioned to execute its growth strategy without operational pressure from short-term market fluctuations.

Call for Rational, Long-Term Assessment by Shareholders

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

Management and the Board continue to evaluate — and when appropriate, will consider implementing — lawful and compliant measures designed to protect corporate value and shareholder interests.