AGORACOM Small-cap Investor Relations Blog

• Announced that Luminosity Gaming, one of the largest and most successful esports organizations in North America, has officially entered the popular Ubisoft video game title, Rainbow Six Siege.
• Luminosity has signed “92 Dream Team,” the current first-place team in the North American division of the Rainbow Six Pro League. 
• Rainbow Six Pro League is the most prestigious R6S competition in the world, featuring the best teams from North America, South America, Europe and APAC competing in their respective regions

TORONTO, June 25, 2019 — Enthusiast Gaming Holdings Inc. (TSXV: EGLX) (OTCQB: EGHIF), (“Enthusiast” or the “Company”), a gaming company building the largest community of authentic gamers, is pleased to announce that Luminosity Gaming (“Luminosity”), one of the largest and most successful esports organizations in North America, has officially entered the popular Ubisoft video game title, Rainbow Six Siege. Luminosity has signed “92 Dream Team,” the current first-place team in the North American division of the Rainbow Six Pro League. 

Rainbow Six Pro League is the most prestigious R6S competition in the world, featuring the best teams from North America, South America, Europe and APAC competing in their respective regions. Competing among teams like FaZe Clan, Team SoloMid, Team Liquid and more, the 92 Dream Team, now competing for Luminosity Gaming, currently sits in first place in the North American division.

The announcement aligns well with Enthusiast’s recent partnership with Ubisoft Canada to host the Rainbow Six Canada Nationals and bring the Ubisoft show floor activation to Enthusiast Gaming Live Expo (EGLX) in October 2019. Presented by Ubisoft Canada and powered by Enthusiast, the Rainbow Six Canada Nationals will kick off in June 2019 and conclude in a live finals at EGLX 2019 on October 20, downtown Toronto at the Metro Toronto Convention Centre.

Menashe Kestenbaum, CEO of Enthusiast commented, “We continue to realize synergies between Enthusiast and Luminosity which will be beneficial for the growth and success of the merged entity. The ability to attract top talent and leverage partnerships across the entire network will help increase reach and monetization opportunities.” He continued, “We look forward to working with the Luminosity team on future synergies for growth across our online platform and various events including EGLX this fall.”

The team consists of Muteeb “Pixel” Chaduary, Tom “Tomas” Kaka, Richie “Rexen” Coronado, Kian “Hyena” Mozayani and Coal “awD” Phillips and is coached by ViiRus.

“We’ve been very impressed by the development of the R6S Pro League,” said Steve Maida, President of Luminosity Gaming. “Not only with the viewership, but with the approach Ubisoft has taken to creating a healthy and stable esport. The ecosystem is one that supports healthy growth for players and organizations alike. We couldn’t have asked for a better team with which to enter the scene. 92 Dream Team are an amazing group of young men who have been able to achieve success while previously balancing day jobs and a lack of resources. We’re excited to watch them soar under the Luminosity banner.”

On May 31, 2019, Enthusiast announced a merger with Luminosity and Aquilini GameCo., to create the largest vertically integrated gaming and esports company in the world.  The merger includes seven esports teams in various gaming titles (including management of the Vancouver Titans Overwatch League franchise), 40 esports and gaming influencers, over 80 gaming media websites, and 900 YouTube and Twitch channels, with an online reach of approximately 200 million. 

About Luminosity Gaming

Luminosity Gaming is a North American professional esports organization. It was founded in Canada in 2015 by Steve Maida with the goal of enabling aspiring competitive gamers to ultimately create sustainable careers. The company now hosts some of the best professional gamers in the world. Luminosity has teams and championships in game titles such as Fortnite, Counter Strike, Call of Duty, Overwatch, Rainbow Six Siege, Smite, Madden and more. Luminosity scouts and hires players and teams who compete on the company’s behalf in tournaments online and in arenas around the world for prize money. Through those efforts, Luminosity has grown to be one of the largest and most successful esports organizations not only in North America but in the world. 

About Enthusiast Gaming

Founded in 2014, Enthusiast Gaming is the largest vertically integrated video game company and has the fastest-growing online community of video gamers. Through the Company’s organic and acquisition strategy, it has amassed a platform of over 150 million monthly visitors across its network of websites and YouTube channels. Enthusiast also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.ca) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com.

CONTACT INFORMATION:

Investor Relations:
Julia Becker
Head of Investor Relations & Marketing
[email protected]
(604) 785.0850

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 anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations and future actions of the Company. 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 information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Enthusiast to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to Enthusiast, including information obtained from third-party industry analysts and other third-party sources, and are based on management’s current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of the Company should be considered highly speculative.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 The securities of the Corporation have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

• Enthusiast Gaming Live Inc. it has partnered with MSI to be a prize sponsor at Enthusiast Gaming Live Expo in October 2019
• MSI is a world leading gaming brand, and one of the most trusted hardware providers in gaming and esports.
• Additional to being a prize sponsor, MSI will also bring an activation to the show floor during the three day expo.

TORONTO, June 24, 2019 — Enthusiast Gaming Holdings Inc. (TSXV: EGLX) (OTCQB: EGHIF), (“Enthusiast” or the “Company”), the largest publicly traded video game media and esports company in North America, is excited to announce that through its subsidiary, Enthusiast Gaming Live Inc. (“EGLive”) it has partnered with MSI to be a prize sponsor at Enthusiast Gaming Live Expo (“EGLX”) in October 2019. MSI is a world leading gaming brand, and one of the most trusted hardware providers in gaming and esports. Additional to being a prize sponsor, MSI will also bring an activation to the show floor during the three day expo.

Melanie Azagury, Manager, EGLX, commented, “As EGLX continues to grow, we continue to engage and partner with the leading brands in the industry. Our goal at EGLX is to provide the best in-person experience for our gaming communities, fans, and competitors, and the partnership with MSI enables us to include the most sought-after gaming hardware to our growing prize pools.”

EGLX will be hosting a number of smaller sub tournaments throughout the expo including popular games such as Fortnite, Apex Legends and Super Smash Brothers. These drop-in tournaments will allow the general attendees to compete with other players and the tournament champions will receive various cash and MSI prizes such as, MSI gaming chairs, personal computers, monitors and laptops. MSI will also be showcasing their latest products in their activation booth.  

Marketing Manager, MSI, Julia Chen added, “EGLX is one of the best Canadian destinations for gamers and players to have the ultimate gaming experience and MSI is thrilled to be a part of it. We are excited to showcase our new products as well as a prize partner at EGLX 2019. Our portfolio could not align more with these communities of lifestyle gamers, It’s an excellent fit for us.”

Tickets to EGLX 2019 will be on sale this summer. More information can be found at eglx.ca. To learn more about sponsorship or exhibit space at EGLX 2019, reach out to [email protected].

About Enthusiast Gaming

Founded in 2014, Enthusiast Gaming is the largest vertically integrated video game company and has the fastest-growing online community of video gamers. Through the Company’s organic and acquisition strategy, it has amassed a platform of over 150 million monthly visitors across its network of websites and YouTube channels. Enthusiast also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.ca) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com.

CONTACT INFORMATION:

Investor Relations:
Julia Becker
Head of Investor Relations & Marketing
[email protected]
(604) 785.0850

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 anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations and future actions of the Company. 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 information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Enthusiast to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to Enthusiast, including information obtained from third-party industry analysts and other third-party sources, and are based on management’s current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of the Company should be considered highly speculative.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The securities of the Corporation have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

• Announced that it has closed the $10,000,000 bridge loanfrom Aquilini GameCo Inc. (as previously announced on May 31, 2019).
• Proceeds from the Bridge Loan will be used by Enthusiast to continue executing on its buy and build growth strategy and will allow the Company to capitalize on accretive growth opportunities.

TORONTO, June 21, 2019 — Enthusiast Gaming Holdings Inc. (TSXV: EGLX) (OTCQB: EGHIF), (“Enthusiast” or the “Company”), a gaming company building the largest community of authentic gamers, is pleased to announce that it has closed the $10,000,000 bridge loan (the “Bridge Loan”) from Aquilini GameCo Inc. (“GameCo”) (as previously announced on May 31, 2019).

Proceeds from the Bridge Loan will be used by Enthusiast to continue executing on its buy and build growth strategy and will allow the Company to capitalize on accretive growth opportunities.

Eric Bernofsky, COO of Enthusiast commented, “This loan from Aquilini GameCo is an important step for Enthusiast to continue executing on its growth strategy. Further, the additional funds give us the opportunity to review other potential acquisition targets.”

Pursuant to the terms of the loan agreement with GameCo dated May 30, 2019 (the “Loan Agreement”), interest shall accrue on the loan at the rate of 8% per annum. All principal and interest under the Bridge Loan will be due and payable by Enthusiast to GameCo on the earlier of: (a) June 20, 2020, and (b) the closing of the plan of arrangement with J55 Capital Corp. and GameCo. Enthusiast will be entitled to prepay all or a part of the Bridge Loan at any time, from time to time, without bonus or penalty. Pursuant to the terms of the Loan Agreement, Enthusiast has paid GameCo a $300,000 administrative fee.

On May 31, 2019, Enthusiast announced that it had entered into an arrangement agreement (the “Arrangement”) with J55 Capital Corp. (“J55”) and GameCo. Pursuant to the Arrangement, J55 has agreed to acquire all of the outstanding common shares of Enthusiast Gaming in exchange for common shares of J55 on the basis of 4.22 J55 common shares for each one Enthusiast common share.

In connection with the Arrangement, GameCo announced on June 19, 2019 the closing of its bought deal private placement (the “GameCo Offering”). The GameCo Offering includes unsecured convertible debentures (“Debentures”) at a conversion price of $0.45 for a total principal amount of $10,000,000.  The Debentures will mature on the date (the “Maturity Date”) that is the earlier of: (i) June 30, 2020, and (ii) the closing date of the Arrangement.

The proceeds from the Bridge Loan were extended by GameCo to Enthusiast on completion of the GameCo Offering.

The completion of the arrangement remain subject to the closing conditions set out in the Arrangement, including approval of the TSXV Venture Exchange and the approval of the requisite majority of the shareholders of J55 and Enthusiast, as applicable.

About Enthusiast Gaming

Founded in 2014, Enthusiast Gaming is the largest vertically integrated video game company and has the fastest-growing online community of video gamers. Through the Company’s unique acquisition strategy, it has a platform of over 80 owned and affiliated websites and currently reaches over 150 million monthly visitors with its curated content and over 50 million YouTube visitors. Enthusiast also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.ca) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com.

CONTACT INFORMATION:

Investor Relations:
Julia Becker
Head of Investor Relations & Marketing
[email protected] 
(604) 785.0850

Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact are forward-looking statements. Forward looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend”, “estimate” or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to the completion of the transactions referred to in this press release (the “Transactions”) and the timing for their completion; the satisfaction of closing conditions which include, without limitation: (i) required shareholder approval, (ii) necessary court approval, (iii) receipt of any required approvals, (iv) certain termination rights available to the parties under the Arrangement, (v) obtaining the necessary approvals from the TSXV, (vi) other closing conditions, including compliance by the parties with various covenants contained in the Arrangement, (vii) statements with respect to the effect of the Transactions on the parties; and (viii) statements with respect to the anticipated benefits associated with the Transactions.

Forward-looking statements are based on certain assumptions regarding Enthusiast, GameCo and J55, including the completion of the Transactions, anticipated benefits from such Transactions, and expected growth, results of operations, performance, industry trends and growth opportunities. While Enthusiast, J55 and GameCo consider 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.

The assumptions of Enthusiast, GameCo and J55, although considered reasonable by them at the time of preparation, may prove to be incorrect. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; future legislative, tax and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the inability to implement business strategies; competition; currency and interest rate fluctuations and other risks. Among other things, there can be no assurance that the Transactions will be completed or that the anticipated benefits from such Transactions will be achieved. Readers are cautioned that the foregoing list is not exhaustive. 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. 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 which are available on SEDAR at www.sedar.com. 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, GameCo and J55, disclaim 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 law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The securities of the Corporation have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.