Concerned Shareholders of Enthusiast Gaming Issue Letter to Shareholders and Proxy Circular
June 27 2022 - 8:00AM
Greywood Investments, LLC, which, together with its associates and
affiliates (the “Concerned Shareholders”), is the largest
shareholder of Enthusiast Gaming Holdings Inc. (NASDAQ:EGLX,
TSX:EGLX) (“Enthusiast” or the “Company”), today advised
shareholders that it has issued a letter to shareholders and Proxy
Circular (the “Circular”) and related voting materials in
connection with Enthusiast’s annual general meeting (the “Meeting”)
which is scheduled to be held on July 19, 2022.
The Concerned Shareholders outlined several
issues they believe are impeding the Company from reaching its full
potential, including poor corporate governance, an unfair
compensation structure and an operating culture that has led to the
departure of many of the founders of the businesses acquired by
Enthusiast and a real risk that the Company will not be able to
retain key employees.
After having its concerns ignored by an
entrenched Board, the Concerned Shareholders acted. They have
nominated an outstanding slate of director nominees, who have the
requisite industry and leadership experience to address the poor
and damaging culture, governance and performance failures under the
current Enthusiast Board and CEO. This has been met with
overwhelming support from current and former Enthusiast industry
visionaries and leaders who have pledged their support to the
campaign to Upgrade Enthusiast. Shareholders now have the
opportunity to ensure that their Company will retain its talent and
reach the multi-billion-dollar valuation that the Concerned
Shareholders and other long-term Enthusiast investors believe is
within reach.
To ensure that the Company’s best days are
ahead, the Concerned Shareholders recommend that fellow
shareholders vote using only the GOLD form of proxy FOR six
exceptional director nominees to Upgrade Enthusiast – Jon Dakss,
Raphael Danon, David Goldhill, Mark Klein, Janny Lee and Dan
Petrozzo. As Enthusiast’s management has put forward nine director
nominees, the Concerned Shareholders also recommend that fellow
shareholders vote FOR three director nominees from management’s
slate – Seth Berger, Alan Friedman, and Angela Ruggiero.
The Concerned Shareholders also sought to have
Shinggo Lu, the founder and general manager of U.GG, nominated to
stand for election to the Board on its slate of nominees, though
were blocked by the Company after Mr. Lu expressed support for our
campaign. The Concerned Shareholders’ director nominees intend to
appoint Mr. Lu to Enthusiast’s Board, should they be elected at the
upcoming shareholder meeting.
The Concerned Shareholders’ Letter to
Shareholders and Circular are available on www.UpgradeEGLX.com and
www.sedar.com. The Circular will also be mailed to Enthusiast
shareholders.
Enthusiast shareholders can also sign-up at
www.UpgradeEGLX.com to stay up to date on the campaign to Upgrade
Enthusiast.
The Concerned Shareholders recommend that fellow
shareholders use only the GOLD form of proxy to vote FOR six
exceptional new upgraded director nominees – Jon Dakss, Raphael
Danon, David Goldhill, Mark Klein, Janny Lee and Dan Petrozzo. As
Enthusiast’s management has put forward a resolution to fix the
board at nine directors, the Concerned Shareholders also recommend
that fellow shareholders vote FOR three director nominees from
management’s slate – Seth Berger, Alan Friedman, and Angela
Ruggiero. Despite adding its own new Director
nominees after its deadline, the Corporation has refused our
request to include Shinggo Lu as an Upgraded director nominee, so
the Concerned Shareholders’ director nominees intend to appoint Mr.
Lu to Enthusiast’s Board, should they be elected at the upcoming
shareholder meeting. |
About Greywood
Greywood is a multi-strategy investment firm
exclusively managing its own 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 is
the largest shareholder of Enthusiast.
For more information: |
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www.UpgradeEGLX.com |
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Investors: |
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Carson Proxy
Advisors |
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Christine@carsonproxy.com |
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416-804-8025 |
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Media: |
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Longview
Communications & Public Affairs |
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Joel
Shaffer |
Peter
Block |
416-649-8006 |
416-649-8008 |
jshaffer@longviewcomms.ca |
pblock@longviewcomms.ca |
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.
A photo accompanying this announcement is
available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/552c1941-fe70-41cd-a2de-668d7599ad64
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