Enthusiast Gaming Accelerates Launch of Gaming Social Network and Premium Subscription Offering with Acquisition of Tabwire
May 12 2021 - 7:00AM
Enthusiast Gaming Holdings Inc. (“Enthusiast
Gaming” or the “Company”) (NASDAQ:EGLX) (TSX:EGLX), a media and
content platform for video game and esports fans to connect and
engage, today announced its plans to develop a subscription-based
social network for gamers, codenamed Project GG. To facilitate the
development of Project GG, Enthusiast Gaming has entered into a
definitive agreement to acquire Tabwire LLC (“Tabwire”), which owns
TabStats (https://tabstats.com), for US$11 million in cash and
stock (the “Acquisition”). The Acquisition will provide Enthusiast
with a technology and data platform which provides gamers the
ability to directly view their game data in real-time.
“The announcement of a unifying pan-Enthusiast
social network with a premium subscription opportunity for gamers
is a defining moment for us as our core GenZ and Millennial
audiences have been moving away from traditional social networks
and turning to gaming as an alternative,” commented Adrian
Montgomery, CEO of Enthusiast Gaming. “Project GG
addresses these trends and will allow gamers to register their
unique gaming profiles, compare stats, develop meaningful
connections, and share content and ideas.” He
continued, “Tabwire marks an important milestone for
Enthusiast Gaming to be able to bring Project GG to market later
this year. It will provide us with essential data capabilities to
deliver our customers a complete social offering with a more
targeted, integrated and personalized experience for today’s gamer.
This is a meaningful next step towards becoming a
technology-powered, media, esports and entertainment company.”
Tabwire is a technology and data platform that
enables gamers, by way of a registered user profile, to track their
player and game stats. Tabwire has already built game play
companion tools for Riot’s Valorant and Ubisoft’s Rainbow Six Siege
with more than 13 million gamers interacting with the platform,
collectively generating more than half a billion views in the last
year. It has an aggressive roadmap to launch real-time stats for
additional game titles in the coming months.
“We are in a unique position to successfully
execute our mission to build a true platform for a game agnostic
social network. Our unique vantage point and distribution platform
that reaches over 300 million gamers monthly gives us unparalleled
exposure to the full breadth of the gaming industry, from
publishers to gaming media to influencers and esports teams,”
commented Menashe Kestenbaum, Founder and President of
Enthusiast Gaming.
The Acquisition is subject to customary closing
conditions, including regulatory approvals. Closing is expected to
occur by the end of the second quarter of 2021.
About Enthusiast Gaming
Enthusiast Gaming is building the largest media
and content platform for video game and esports fans to connect and
engage worldwide. Combining the elements of its four core pillars;
Media, Talent, Esports and Experiences, Enthusiast Gaming provides
a unique opportunity and integrated approach to reach and connect
with its coveted GenZ and Millennial audience. Through its
proprietary mix of digital media and entertainment assets,
Enthusiast Gaming has built a vast network of like-minded
communities to deliver the ultimate fan experience.
Contacts
Enthusiast Gaming Investor Relations:Eric
Bernofsky, Chief Corporate Officerinvestor@enthusiastgaming.com
Media Relations:Carmela Antolino, Provident
Communicationscarmela@providentcomms.com647-287-2286
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 Gaming
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 regarding: new product initiatives of
the Company, the timing and completion of the acquisition of
Tabwire under the terms contained herein, and synergies between the
acquisition of Tabwire and the Company’s development and strategic
plans.
Forward-looking statements are based on
assumptions and analyses made by the Company in light of its
experience and its perception of historical trends, current
conditions and expected future developments, including, but not
limited to, 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 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 associated with general economic conditions; the
timing and filing of the final base shelf prospectus and
corresponding Registration Statement; the potential offering of any
Securities by the Company; uncertainty with respect to the
completion of any future offering; the ability to obtain applicable
regulatory approvals for any contemplated offerings; the ability of
the Company to negotiate and complete future funding transactions;
adverse industry events; and future legislative, tax and regulatory
developments. Readers are cautioned that the foregoing list is not
exhaustive. 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. 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. 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 applicable law.
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