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, is pleased to announce it has closed the previously
announced acquisition (the “Acquisition”) of Tabwire LLC
(“Tabwire”), which owns TabStats (www.tabstats.com), for US$11
million in cash and stock.
Upon closing of the Acquisition, the Company
made a cash payment of US$5 million and issued 790,094 common
shares in the capital of the Company (the “Common Shares”) at an
agreed value of CAD$9.51 per share, for total share consideration
of US$6 million. The Common Shares are subject to a contractual
lock-up with 66.66% released twelve (12) months following the
closing date, 16.66% released fifteen (15) months following the
closing date, and 16.67% released eighteen (18) months following
the closing date.
Tabwire is a proprietary technology and data
platform enabling gamers to create a cross-platform registered user
identification profile to track and directly view their game data
in real-time. In addition, it has a unique feature set including a
cheater detection system that enhances fair game play by generating
a player trust ranking system for its registered users. 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 with an aggressive roadmap to
launch real-time stats for additional game titles in the coming
months.
This important acquisition provides the Company
with a technology and data platform that accelerates the
development of its pan-Enthusiast social network and freemium
subscription offering, codenamed Project GG. As Millennials and
GenZs move away from traditional social networks, Project GG will
be a cross-platform, gaming centric social network, uniting gaming
and esports fans with a platform to connect and share content
through their unique gaming profiles, whether it be on desktop,
mobile, or in-game.
Developing a proprietary product like Project GG
will also enhance the Company’s ability to deliver a more complete
fan experience with a more targeted, engaged, and personalized
journey for gamers and customers alike and represents a significant
step towards the Company’s evolution to a technology-powered,
media, esports, and entertainment company.
“As a gamer myself, I can genuinely say that the
technology behind Tabwire is a game changer for the industry as it
provides the foundation for a new form of community allowing gamers
to connect, interact, and compete in a trusting environment,”
commented Menashe Kestenbaum, Founder and President of
Enthusiast Gaming. He continued, “This acquisition
represents the next big step in our mission to transform this
industry even further and successfully deliver a game agnostic
social network for gamers globally. I would also like to take this
opportunity to welcome Tabwire’s founder and creator Nader Halim to
the Enthusiast Gaming family.”
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
Investor Relations:Eric Bernofsky, Chief
Corporate Officer, Enthusiast
Gaminginvestor@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 development of
Project GG, the functionality of future products of the Company,
and synergies between the acquisition of Tabwire and the Company’s
product development and strategic initiatives.
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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