Enthusiast Gaming Announces Closing of $58.7 Million Bought Deal Public Offering Including Exercise of Over-Allotment Option

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TORONTO, Feb. 10, 2021 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX: EGLX) (OTCQB: ENGMF)(FSE: 2AV) is excited to announce that it has closed its previously announced public offering (the “Offering”) of common shares in the capital of the Company (“Common Shares”), including the exercise of the over-allotment option in full, at a price of $5.75 per Common Share. The Company offered and sold a total of 7,383,000 Common Shares (the “Treasury Offering”), and an aggregate of 2,817,500 Common Shares (the “Secondary Offering”) were offered and sold by Blue Ant Media Inc. (“Blue Ant” or the “Selling Shareholder”) resulting in aggregate gross proceeds of approximately $58.7 million, with the Company and the Selling Shareholder receiving gross proceeds of approximately $42.5 million and $16.2 million, respectively.

The Offering was underwritten by Canaccord Genuity Corp., as sole bookrunner and co-lead underwriter, with Paradigm Capital Inc., acting as co-lead underwriter, and RBC Dominion Securities Inc., Cormark Securities Inc., and Haywood Securities Inc., acting as co-managers (collectively, the “Underwriters”).

The net proceeds from the Treasury Offering are expected to be used for future acquisitions, working capital and general corporate purposes, as more particularly described in the short form prospectus dated February 5, 2021 which is available under the Company’s profile on SEDAR at www.sedar.com. The Company will not receive any proceeds from the sale of Common Shares associated with the Secondary Offering.

This press release is not an offer to sell, or the solicitation of an offer to buy, any securities in the United States or any other jurisdiction. The securities mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933 (the "U.S. Securities Act"), as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

Immediately before the completion of the Offering, Blue Ant exercised beneficial ownership and control over 18,250,000 Common Shares, representing 16.85% of the issued and outstanding Common Shares. As part of the Offering, Blue Ant disposed of ownership and control over 2,817,500 Common Shares, representing 2.44% of the outstanding Common Shares after giving effect to the Offering. Immediately after the completion of the Offering, Blue Ant exercised beneficial ownership and control over 15,432,500 of the Common Shares, representing 13.34% of the issued and outstanding Common Shares. Blue Ant disposed of the Common Shares to realize an investment return. Blue Ant may, from time to time and at any time, acquire additional Common Shares in the open market or otherwise, and reserves the right to dispose of any or all of its Common Shares in the open market or otherwise at any time and from time to time depending on contractual hold periods, market conditions and other relevant factors.