TORONTO, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. ("Enthusiast Gaming" or the "Company") (TSX:EGLX) today announced that it has completed its previously announced transaction (the "Transaction") with Vertiqal Studios Corp. ("VSC") for the sale of its direct sales business line and related entities (the "Direct Sales Business Line"). The Transaction closed on August 30, 2025.
"This transaction is a significant step forward and marks the beginning of a new era for Enthusiast Gaming," said Alex Macdonald, Chief Executive Officer of Enthusiast Gaming. "We know who we are and our strategy is clear: we build the tools, platforms, and experiences that make every moment of play more meaningful, and we will win by investing in properties that serve gamers directly, expanding our IP, and continuing to execute on our product-first vision. With our business now aligned around our core strengths, and with a strengthened balance sheet, we are now fully focused on executing this strategy and capitalizing on the many core growth opportunities we have already identified across both audience and revenue."
As disclosed in the Company's August 19, 2025, press release, under the terms of the Transaction, VSC acquired the Direct Sales Business Line, including Omnia Media Inc. and GameCo Esports Canada Inc. (collectively, the "Acquired Entities"), for cash consideration of C$900,000, which had been paid to the Company as a non-refundable deposit to secure the Transaction, as well as the assumption of all existing and ongoing liabilities of the Direct Sales Business Line and Acquired Entities as of closing. As of June 30, 2025, the net liability position of the Direct Sales Business Line and acquired entities being assumed by VSC would have been approximately US$2.6 million.
The Transaction is expected to result in approximately C$10 million of cost savings on an annual basis, resulting in material improvements in Adjusted EBITDA, while providing over C$4.5 million of balance sheet improvement and other significant working capital benefits to the Company.
Following the closing of the Transaction, the Company remains focused on operating and expanding its profitable portfolio of digital assets, including leading gaming properties such as U.GG, Icy-Veins, TheSimsResource, Addicting Games, PocketGamer, Fantasy Football Scout, LiveFPL, GameKnot, PoE-Vault, ProBuildStats, TrackLock.gg, EV.IO, Arcade Cloud, and The Countdown, amongst others, as well as the Company's global B2B event series, PocketGamer Connects, which properties and events represent the Company's web programmatic advertising, subscription, and events revenue streams.
About Enthusiast Gaming
Enthusiast Gaming builds tools, platforms, and experiences that make every moment of play more meaningful. Its portfolio of owned and operated digital properties includes some of the most recognizable names in gaming, such as U.GG, Icy-Veins, TheSimsResource, PocketGamer, and Addicting Games, as well as the global B2B event series PocketGamer Connects. Through these assets, Enthusiast Gaming generates revenue from programmatic advertising, subscriptions, and events, and is focused on expanding its owned IP and deepening direct engagement with its audience.
Contacts
Enthusiast Gaming: Alex Macdonald, Chief Executive Officer
Investors: investor@enthusiastgaming.com
Media: press@enthusiastgaming.com
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 foregoing) be taken, occur, be achieved, or come to pass. Forward-looking statements in this news release include, but are not limited to, statements regarding expected future cost savings and other financial benefits related to the Transaction.
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.
