Enthusiast Gaming Amends and Expands its Credit Facilities to Support its Growth Strategy
November 30 2020 - 6:00AM
Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the
“Company”) (TSX: EGLX)(OTCQB: ENGMF)(FSE: 2AV), the largest gaming
platform in North America, reaching over 300 million monthly video
game and esports fans worldwide, today announced that it has
entered into an amended and restated letter agreement (the “Amended
Credit Agreement”) with the Company’s lender, resulting in an
increase in the total size of its credit facilities, under more
flexible and growth-friendly terms.
The Amended Credit Agreement increases the
Company’s total borrowing capacity to up to $24 million, including
a term loan in the amount of $10 million, and revolving demand
loans of up to $14 million. The move to revolving facilities will
provide the Company the ability to utilize cash-on-hand to reduce
interest costs.
"This positive development for our balance sheet
complements our capital plan as we continue to press on and focus
on our strategic growth priorities”, said Adrian
Montgomery, CEO of Enthusiast Gaming. “The modest increase
in our borrowing base provides great options, while complementing
our anticipated Nasdaq listing and entry into the U.S. capital
markets.”
Amounts drawn under the Amended Credit Agreement
are to be used for (i) refinancing of obligations under the
pre-existing letter agreement with the Lender dated August 2, 2019,
as amended on September 30, 2019 and August 31, 2020 (ii) working
capital purposes and (iii) financing of future acquisitions.
Other material terms of the Amended Credit
Facility, including the term and rate of interest, remain
unchanged.
About Enthusiast Gaming
Enthusiast Gaming (TSX: EGLX)(OTCQB: ENGMF)(FSE:
2AV) is building the world’s largest social network of communities
for video game and Esports fans that reaches over 300 million
gaming enthusiasts on a monthly basis. Already the largest gaming
platform in North America and the United Kingdom, the Company’s
business is comprised of four main pillars: Esports, Content,
Talent and Entertainment. Enthusiast Gaming’s esports division,
Luminosity Gaming, is a leading global esports franchise that
consists of 7 professional esports teams under ownership and
management, including the Vancouver Titans Overwatch team and the
Seattle Surge Call of Duty team. Enthusiast's gaming content
division includes 2 of the top 20 gaming media and entertainment
video brands with BCC Gaming and Arcade Cloud, reaching more than
50MM unique viewers a month across 9 YouTube channels, 8 Snapchat
shows and related Facebook, Instagram and TikTok accounts. Its 100
gaming-related websites including The Sims Resource, Destructoid,
and The Escapist collectively generate 1.1 billion page views
monthly. Enthusiast's talent division works with nearly 1,000
YouTube creators generating nearly 3 billion views a month working
with leading gamer talent such as Pokimane, Flamingo, Anomaly, and
The Sidemen. Enthusiast's entertainment business includes Canada’s
largest gaming expo, EGLX (eglx.com), and the largest mobile gaming
event in Europe, Pocket Gamer Connects (pgconnects.com). For more
information on the Company visit enthusiastgaming.com. For more
information on Luminosity Gaming visit luminosity.gg.
Neither the TSX Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Exchange) accepts responsibility for the adequacy or accuracy
of this release.
This news release contains certain statements
that may constitute forward-looking information under applicable
securities laws. All statements, other than those of historical
fact, which address activities, events, outcomes, results,
developments, performance or achievements that Enthusiast
anticipates or expects may or will occur in the future (in whole or
in part) should be considered forward-looking information. Often,
but not always, forward-looking information can be identified by
the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "believes" or variations (including negative
variations) of such words and phrases, or statements formed in the
future tense or indicating that certain actions, events or results
"may", "could", "would", "might" or "will" (or other variations of
the forgoing) be taken, occur, be achieved, or come to pass.
Forward-looking statements in this news release include, but are
not limited to statements relating to the Enthusiast Gaming's
filing of a listing application with NASDAQ and its plans to file a
Form 40-F with the SEC and any regulatory or other approvals
required in connection therewith as well as the diversification of
Enthusiast Gaming’s shareholder base, increased liquidity for
shareholders and the acceleration of its business strategy.
Forward-looking statements are based on
assumptions, including expectations and assumptions concerning:
interest and foreign exchange rates; capital efficiencies, cost
saving and synergies; growth and growth rates; the success in the
esports and media industry; and the anticipated benefits of listing
on the NASDAQ and the Company’s growth plan. While Enthusiast
Gaming considers these assumptions to be reasonable, based on
information currently available, they may prove to be incorrect.
Readers are cautioned not to place undue reliance on
forward-looking statements. In addition, forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks related risks associated with general economic
conditions; adverse industry events; future legislative, tax and
regulatory developments. Readers are cautioned that the foregoing
list is not exhaustive and other risks set out in Enthusiast Gaming
public disclosure recorded filed under the Company’s provide
on www.sedar.com, including those contained in the prospectus.
Readers are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
For more information on the risk, uncertainties and assumptions
that could cause anticipated opportunities and actual results to
differ materially, please refer to the public filings of Enthusiast
Gaming which are available on SEDAR at www.sedar.com.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement and reflect our
expectations as of the date hereof, and thus are subject to change
thereafter. Enthusiast Gaming disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
For further information: Enthusiast Gaming Contact: Alex Macdonald, CFO, 416.623.9360
Investor Relations Contact:
Eric Bernofsky, Chief Corporate Officer, 416.623.9360
investor@enthusiastgaming.com
Media Relations – ID Public Relations
EnthusiastGaming@id-pr.com
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