Enthusiast Gaming Advances Strategic Objectives with C$4.1 Million Sale of Select Non-Core Assets

Sale includes select assets in the Company’s casual gaming division, allowing continued focus on core growth areas

LOS ANGELES, April 01, 2024 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX: EGLX), a leading gaming and media company, today announced it has entered into a definitive agreement (the “Asset Sale Agreement”) for the divestment of certain non-core and non-profitable casual gaming assets (the “Assets”) for a purchase price of approximately C$4.1 million.

The Assets comprise a subset of Enthusiast Gaming’s casual gaming business, and the divestment is a continuation of a number of recent strategic actions designed to enhance the Company’s operational efficiency while emphasizing high-margin revenue growth and sustainable profitability. Other recent actions include a C$10 million cost reduction program, and a multi-year partnership with Playwire to improve programmatic yield and unlock additional revenue streams, both actioned in March (announced on March 7 and March 28, 2024, respectively).

“We are swiftly executing on our strategic objectives including operational efficiency, enhancing liquidity, and building a platform of sustainable profitability,” said Adrian Montgomery, Board Chair and Interim CEO of Enthusiast Gaming. “This sale of a subset of non-core and non-profitable assets for C$4.1 million underscores our dedication to strengthening our balance sheet while simultaneously reducing operating costs. Further, this allows us to focus our efforts on core business opportunities, including TheSimsResource, U.GG, PocketGamer, Icy-Veins, Luminosity Gaming, NFL TNG, and our many other assets and properties that boast substantial audiences, drive direct sales, and present significant subscription opportunities.”

The Asset Sale Agreement is expected to close in 10 business days and is subject to customary closing conditions. Among the Assets included as part of the divestment are Shockwave, LittleBigSnake, MathGames.com, and TypeRacer.com.

Contacts

Enthusiast Gaming: Felicia DellaFortuna, CFO
Investors: FNK IR, Matt Chesler, CFA – [e-mail]
Media: [e-mail]

About Enthusiast Gaming

Enthusiast Gaming is a leading gaming media and entertainment company, building the largest platform for video game enthusiasts and esports fans to connect and compete worldwide. Combining the elements of its five core pillars: creators, content, communities, games, and experiences, Enthusiast Gaming provides a unique opportunity for marketers to create integrated brand solutions to connect with coveted Gen Z and Millennial audiences. Through its proprietary mix of digital media, content and gaming assets, Enthusiast Gaming continues to grow its network of communities, reflecting the scale and diversity of gaming enthusiasts today.