Enthusiast Gaming Secures $10 Million Expansion of Credit Facility
September 19 2022 - 7:00AM
Enthusiast Gaming Holdings Inc. (“Enthusiast
Gaming” or the “Company”) (NASDAQ:EGLX; TSX:EGLX), an integrated
gaming entertainment company, today announced that it has secured
an expansion of its existing term credit facility by way of
amendment, increasing the size of the facility from $10 million to
$20 million (the “Facility”).
Together with the Company’s $5 million operating
facility, the amendment provides the Company with access to up to
$15 million of incremental non-dilutive capital which the Company
intends to use for working capital and general corporate purposes,
including the bolstering of cash reserves as the Company continues
to execute its business plan.
“We are very pleased with the terms of the
amended Facility, which provides us with increased financial
flexibility through the use of non-dilutive capital and
demonstrates a high level of confidence in our business plan and
path to profitability from a first-rate lender,” commented
Adrian Montgomery, Chief Executive Officer of Enthusiast
Gaming. “The additional capital provided by this amendment
puts us in a strong cash position and provides ample liquidity to
secure the Company’s continued success by enhancing our ability to
execute on our flywheel business model. In particular, our ability
to use the additional capital to continue to take advantage of
exciting new opportunities as they arise, such as our recently
announced, first-of-its-kind gaming collaboration with the NFL to
launch NFL Tuesday Night Gaming, will allow us to continue to grow
our brand and expand our global partnerships in unique and engaging
ways.”
The amendment includes related modifications of
certain financial covenants pertaining to the Company. The
remaining terms, conditions, and covenants of the Facility,
including the maturity date and security provided in respect of the
Facility, remain materially consistent with the terms, conditions,
and covenants of the Facility prior to the amendment, as described
in the Company’s press release dated December 16, 2021.
About Enthusiast Gaming
Enthusiast Gaming is an integrated gaming
entertainment company, 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:
Communities, Content, Creators, 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
Forward-Looking Statements
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 the use and potential impact
of the proceeds of the Facility amendment on the Company’s
operations.
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
gaming media industry; the Company’s growth plan, and judgment
applied in the application of the Company’s accounting policies and
in the preparation of financial statements in accordance with
applicable financial reporting standards. 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; 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 risks, 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.
Neither the Toronto Stock Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the exchange)
accepts responsibility for the adequacy or accuracy of this
release.
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