Enthusiast Gaming Announces Filing of Final Prospectus and Reliance on Blanket Relief Orders; and Provides Update on Financial Statements

TORONTO, Aug. 26, 2020 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX: EGLX)(OTCQB: ENGMF)(FSE: 2AV) is pleased to announce that it has obtained receipt for its final short-form prospectus (the “Prospectus”) filed with the securities regulatory authorities in each of the provinces of Canada (other than Quebec), in connection with its previously announced offering, whereby a syndicate of underwriters led by Canaccord Genuity Corp., agreed to purchase from the Company, on a bought deal basis, an aggregate of 10,000,000 common shares in the capital of the Company at a price of $1.50 per common share for aggregate gross proceeds of $15,000,000 (the “Offering”).

The Offering is expected to close on or before August 31, 2020. Further information on the Offering and the related acquisition (the “Acquisition”) of Omnia Media Inc. by the Company is contained in the Prospectus a copy of which is available under the Company’s profile on www.sedar.com.

The Company also announces that due to circumstances created by the COVID-19 pandemic, it intends to rely on the temporary blanket relief provided by the Canadian Securities Administrators, including the exemptive relief contained in Ontario Instrument 51-504 Temporary Exemptions from Certain Requirements to File or Send Securityholder Materials, to postpone the public filing of its executive compensation disclosure until such time as it is filed and delivered to shareholders as part of the Company’s information circular relating to its 2020 annual meeting of shareholders. Pending filing of the Company’s information circular, the Company has provided executive compensation disclosure in the Prospectus.

The Company also announces that prior to filing the Prospectus, it filed a restated unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2020, (the “Amended Financial Statements”), along with a corresponding restated management discussion and analysis (the “Amended MD&A”). The restatement of the Amended Financial Statements and the Amended MD&A was made as the result of management and the auditor's review of the financial statements during the course of the Ontario Securities Commission’s review of the Prospectus.