North American organisation Team Reciprocity is downscaling its business, which includes the release of its staff.
The move was made public by Chad Larsson, Founder and President of Team Reciprocity, on Twitter.
RELATED: Team Reciprocity enters letter of intent with Rainy Hollow Ventures
As part of the downscaling, Team Reciprocity will only retain its teams in Crossfire, which was established in partnership with LGD Gaming, and in League of Legends, in partnership with Rainbow7.
In February, Team Reciprocity announced that it had entered a letter of intent with Rainy Hollow Ventures that would see the latter acquire all issued and outstanding securities of the former. The organisation is planning to still go through with the agreement.
RELATED: Team Reciprocity enters Latin America with Rainbow7 alliance
Larsson spoke on the decision in a video on Twitter: “As some of you are aware, Reciprocity is working towards an RTO – being listed on the TSXV – and during that process, we were raising interim financing. This financing has since dissolved, given the astronomical crash on the global capital markets, this has positioned Reciprocity to scale down to its bare bones in order to survive the current market conditions.
“As such, what my team and I have built over the last couple of years – pouring blood, sweat, and tears into this since inception – is being dismantled in a matter of weeks. We will be releasing all staff and scaling down to our CrossFire franchise and our co-ownership with Rainbow7. The company will continue to raise funds and still work towards an RTO on the TSXV.”
Esports Insider says: It’s a shame to see a casualty in the esports industry, especially including an organisation that employed plenty of staff and housed plenty of teams. The future of Team Reciprocity appears to be very much up in the air at the moment; we wish everybody affected by the downscaling the very best.