Enthusiast Gaming Provides Update on Recent Marketing Activity

TORONTO, Dec. 31, 2019 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (OTCQB: ENGMF) commenced trading on the OTCQB Venture Market (“OTC”) on December 13, 2019 and has been requested by the OTC to comment on recent marketing activity concerning its common shares traded on the OTC marketplace.

As disclosed in a press release on December 2, 2019, Enthusiast Gaming engaged Native Ads, Inc. (“Native Ads”) to provide strategic digital media and programmatic advertising to help build brand awareness for Enthusiast Gaming and to gain valuable data, insight and lead generation. As explained in that press release, Enthusiast Gaming also paid Native Ads for the creation and distribution of certain marketing materials which were published on December 17, 2019. The Company did not have editorial control over the materials, although it reviewed a draft for any factual inaccuracies about the Company. The Company is not able to determine whether the materials had any material impact on the trading of the Company’s common shares. The OTC has advised the Company that it has included a stock promotion flag on the Company’s profile as a result of these materials, which will remain in place until 15 days following the end of that marketing campaign.

The materials prepared by Native Ads presented a general overview of the Company’s business and operations and the growth potential of global gaming and the esports industry. The OTC believes that the materials may have included speculative language and forward-looking statements about the Company’s future prospects. As such, the Company is taking immediate steps to cause the discontinuance of the dissemination of these materials.

Upon inquiry of the Company’s management, directors, control persons and third-party service providers, to the best of the Company’s knowledge during the past 90 days no such persons executed any sales transactions of the Company’s securities during such time period. During the prior 90 days, the Company has not issued any securities at prices constituting a discount to the then current market price (other than pursuant to previously issued convertible securities).

Since commencing trading as Enthusiast Gaming Holdings Inc. on September 9, 2019, the Company has engaged the following third parties to provide investor relations, public relations, marketing, advertising and other related activities: Strike Communications Inc., Native Ads, Inc., New Era Publishing, Inc., MZ IR Group and Generation Advisors.