Enthusiast Gaming Advances Strategic Objectives with C$4.1 Million Sale of Select Non-Core Assets
01 Abril 2024 - 8:00AM
Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the
“Company”) (TSX: EGLX), a leading gaming and media company, today
announced it has entered into a definitive agreement (the “Asset
Sale Agreement”) for the divestment of certain non-core and
non-profitable casual gaming assets (the “Assets”) for a purchase
price of approximately C$4.1 million.
The Assets comprise a subset of Enthusiast
Gaming’s casual gaming business, and the divestment is a
continuation of a number of recent strategic actions designed to
enhance the Company’s operational efficiency while emphasizing
high-margin revenue growth and sustainable profitability. Other
recent actions include a C$10 million cost reduction program, and a
multi-year partnership with Playwire to improve programmatic yield
and unlock additional revenue streams, both actioned in March
(announced on March 7 and March 28, 2024, respectively).
“We are swiftly executing on our strategic
objectives including operational efficiency, enhancing liquidity,
and building a platform of sustainable profitability,” said Adrian
Montgomery, Board Chair and Interim CEO of Enthusiast Gaming. “This
sale of a subset of non-core and non-profitable assets for C$4.1
million underscores our dedication to strengthening our balance
sheet while simultaneously reducing operating costs. Further, this
allows us to focus our efforts on core business opportunities,
including TheSimsResource, U.GG, PocketGamer, Icy-Veins, Luminosity
Gaming, NFL TNG, and our many other assets and properties that
boast substantial audiences, drive direct sales, and present
significant subscription opportunities.”
The Asset Sale Agreement is expected to close in
10 business days and is subject to customary closing conditions.
Among the Assets included as part of the divestment are Shockwave,
LittleBigSnake, MathGames.com, and TypeRacer.com.
Contacts
Enthusiast Gaming: Felicia DellaFortuna,
CFOInvestors: FNK IR, Matt Chesler, CFA
– investor@enthusiastgaming.comMedia: press@enthusisatgaming.com
About Enthusiast Gaming
Enthusiast Gaming is a leading gaming media and
entertainment company, building the largest platform for video game
enthusiasts and esports fans to connect and compete worldwide.
Combining the elements of its five core pillars: creators, content,
communities, games, and experiences, Enthusiast Gaming provides a
unique opportunity for marketers to create integrated brand
solutions to connect with coveted Gen Z and Millennial audiences.
Through its proprietary mix of digital media, content and gaming
assets, Enthusiast Gaming continues to grow its network of
communities, reflecting the scale and diversity of gaming
enthusiasts today.
Forward Looking Information
This news release contains certain statements
that may constitute forward-looking information under applicable
securities laws. All statements, other than those of historical
fact, which address activities, events, outcomes, results,
developments, performance or achievements that Enthusiast Gaming
anticipates or expects may or will occur in the future (in whole or
in part) should be considered forward-looking information. Often,
but not always, forward-looking information can be identified by
the use of words such as “plans”, “expects”, “is expected”,
“budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates”, or “believes” or variations (including negative
variations) of such words and phrases, or statements formed in the
future tense or indicating that certain actions, events or results
“may”, “could”, “would”, “might” or “will” (or other variations of
the forgoing) be taken, occur, be achieved, or come to pass.
Forward-looking statements in this news release include, but are
not limited to, statements regarding the closing of the Asset
Purchase Agreement including timing, the impact and potential use
of the proceeds from the sale of the Assets, and the Company’s
future financial performance and strategic objectives.
Forward-looking statements are based on
assumptions and analyses made by the Company in light of its
experience and its perception of historical trends, current
conditions and expected future developments, including, but not
limited to, expectations and assumptions concerning interest and
foreign exchange rates; capital efficiencies, cost saving and
synergies; growth and growth rates; the success in the esports and
media industry; and the Company’s growth plan. While Enthusiast
Gaming considers these assumptions to be reasonable, based on
information currently available, they may prove to be incorrect.
Readers are cautioned not to place undue reliance on
forward-looking statements. In addition, forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with general economic conditions; the
timing and filing of the final base shelf prospectus and
corresponding Registration Statement; the potential offering of any
Securities by the Company; uncertainty with respect to the
completion of any future offering; the ability to obtain applicable
regulatory approvals for any contemplated offerings; the ability of
the Company to negotiate and complete future funding transactions;
adverse industry events; and future legislative, tax and regulatory
developments. Readers are cautioned that the foregoing list is not
exhaustive. For more information on the risk, uncertainties and
assumptions that could cause anticipated opportunities and actual
results to differ materially, please refer to the public filings of
Enthusiast Gaming which are available on SEDAR+ at
www.sedarplus.ca. Readers are further cautioned not to place undue
reliance on forward-looking statements as there can be no assurance
that the plans, intentions or expectations upon which they are
placed will occur. Such information, although considered reasonable
by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement and reflect our
expectations as of the date hereof, and thus are subject to change
thereafter. Enthusiast Gaming disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable law.
Neither the TSX Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Exchange) accepts responsibility for the adequacy or accuracy
of this release.
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