TORONTO, Oct. 07, 2019 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (TSX.V:EGLX) (“Enthusiast Gaming” or the “Company”), is pleased to announce that it has closed the acquisition (the “Transaction”) of Steel Media Limited (“Steel Media”), a leading mobile gaming and live events company (previously announced in a press release dated September 18, 2019).
Enthusiast Gaming is the largest gaming network in the U.S., and the acquisition of Steel Media adds 20 mobile gaming websites and 25 live mobile events worldwide to its media and events business. Enthusiast Gaming’s network now includes over 100 gaming-related websites, 900 YouTube channels, 7 professional esports teams, over 50 social influences, and almost 30 live events worldwide. The network reaches over 200 million gamers on a monthly basis.
Upon closing of the Transaction, the Company made a cash payment of US$1,968,536 (US$1,000,000 net of cash on hand) and issued 304,147 common shares in the capital of the Company (the “Common Shares”) for an aggregate value of US$500,000. At the option of the Company, US$1,000,000 of the up to US$1,500,000 balance of the purchase price (inclusive of the maximum earn-out payment) may be settled by way of issuing Common Shares at a deemed price per share equal to the 5 day VWAP. All Common Shares issued in connection with the Transaction are subject to a 12 month hold period from the date of issuance and approval of the TSX Venture Exchange.
About Enthusiast Gaming
Enthusiast Gaming Holdings Inc. (TSX.V:EGLX) is one of the largest, vertically integrated, video game and esports company in the world. The Company’s business comprises three main pillars: Media, Events, Esports. Enthusiast Gaming’s digital media platform includes +100 gaming related websites and 900 YouTube channels which collectively reach 150 million visitors monthly. Enthusiast’s esports division, Luminosity Gaming, a leading global esports franchise consists of 7 professional esports teams under ownership and management, including the #1 ranked Overwatch team, the Vancouver Titans and over 50 gaming influencers with a total audience of 60 million followers. Collectively, the integrated ecosystem reaches over 200 million gaming enthusiasts on a monthly basis. Enthusiast Gaming’s event business, owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.com) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com. For more information on Luminosity Gaming, please visit luminosity.gg
Certain statements in this release are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of Enthusiast Gaming. The risks include risks that are customary to transactions of this nature and customary to companies which have their stock traded on the TSXV. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Enthusiast Gaming will obtain from them. For instance, there can be no assurance that the acquisition will position the Company as a leader in the mobile gaming sector and that the acquisition will result in growth of the Company’s online and offline gaming community.
This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither 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.