Largest Shareholder of Enthusiast Gaming Holdings Inc. Demands Upgrade of Company Leadership to Deliver on Tremendous Value Creation Opportunity
May 24 2022 - 8:00AM
A longstanding shareholder of Enthusiast Gaming Holdings Inc.
(NASDAQ:EGLX; TSX:EGLX) (“Enthusiast” or the “Company”), Greywood
Investments, LLC, which, together with its associates and
affiliates (“Greywood”), currently owns over 9.3% of the Company’s
shares and is its largest shareholder, today sent a letter to
Enthusiast’s Board of Directors (the “Board”), notifying it of
Greywood’s intention to upgrade the Company by changing the
composition of the Board.
Greywood is optimistic about Enthusiast’s
exceptional talent and enormous potential but believes this is not
reflected in the Company’s current value. To unlock Enthusiast’s
true value, Greywood intends to lead shareholders in upgrading
Enthusiast’s Board and leadership. In contemplation of Enthusiast’s
annual general meeting of shareholders to be held on June 29, 2022,
Greywood plans to nominate several highly qualified individuals
with a strong and diverse range of experiences, expertise, and
credentials to enhance the Board of Directors significantly.
As an investor in the Company since 2018,
Greywood has repeatedly expressed its concerns regarding the
performance of Enthusiast’s Board and CEO and has offered solutions
on multiple occasions over the last few months. Despite the
constructive nature of Greywood’s analysis and proposed solutions,
its efforts have been met with transparent delay tactics by what
appears to have become an entrenched Board and CEO, who have been
unwilling or unable to make the requisite changes.
The industry is moving fast and time is of the
essence for Enthusiast. The urgency of this situation is
highlighted by the Company’s share price, which has declined from a
high of US$8.64 on April 20, 2021, to US$2.10 per share as of the
close of business on May 23, 2022, almost a 76% loss. This compares
quite unfavorably to a drop of approximately 16% for the Nasdaq
Stock Market and less than 4% for the S&P 500 Index during the
same period.
The full text of Greywood’s letter to
Enthusiast’s Board is available at www.UpgradeEGLX.com.
Shareholders who would like to stay up to date on Greywood’s
campaign to “Upgrade Enthusiast” are invited to sign-up for updates
via the website.
For more information:
www.UpgradeEGLX.com
Investors:
Carson Proxy AdvisorsChristine@carsonproxy.com416-804-8025
Media:
Longview Communications & Public Affairs Joel
Shaffer 416-649-8006 jshaffer@longviewcomms.ca |
Peter Block416-649-8008 pblock@longviewcomms.ca |
About Greywood
Greywood is a multi-strategy investment
firm exclusively managing proprietary capital. It invests in
securities and assets across the capital structure with a
particular focus on investments in emerging sector public and
private companies. Greywood seeks to work constructively
with portfolio companies and other stakeholders to actively support
and assist management in developing and realizing the company’s
full potential. Together with its associates and affiliates,
Greywood owns over 9.3% of Enthusiast’s shares and is its largest
shareholder.
Forward Looking Statements
Certain statements in this press release
constitute forward-looking statements within the meaning of
applicable Canadian securities laws. All statements contained in
this press release that are not clearly historical in nature or
that necessarily depend on future events are forward-looking, and
the words "anticipate," "believe," "expect," "estimate," "plan,"
and similar expressions are generally intended to identify
forward-looking statements. These statements are based on the
current expectations of Greywood and currently available
information. They are not guarantees of future performance, involve
certain risks and uncertainties that are difficult to predict, and
are based upon assumptions as to future events that may not prove
to be accurate. Greywood cautions that its assumptions may not
materialize and current economic conditions render such
assumptions, although reasonable at the time made, subject to
greater uncertainty. There can be no assurance that forward-looking
statements included in this press release will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers are advised not to place undue reliance on forward-looking
statements included herein. Greywood does not assume any obligation
to update any forward-looking statements contained in this press
release, except as required by applicable law.
No Solicitation
This press release is for informational purposes
only and is not a solicitation of proxies. Any proxies solicited in
respect of the Meeting in favour of the removal of current
directors and the appointment of Greywood’s nominees will be
solicited pursuant to an information circular or as otherwise
permitted by Canadian corporate and securities laws.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b8d2d2be-200b-4bc8-bc87-41382759588f
Enthusiast Gaming (NASDAQ:EGLX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Enthusiast Gaming (NASDAQ:EGLX)
Historical Stock Chart
From Apr 2023 to Apr 2024