Business
Enthusiast Gaming Completes Direct Sales Business Divestment
TORONTO, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast G...
About this update from Enthusiast Gaming Holdings Inc
[{"type":"text","content":"Enthusiast Gaming Completes Direct Sales Business Divestment\n\n\n\n TORONTO, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX:EGLX) today announced that it has completed its previously announced transaction (the “Transaction”) with Vertiqal Studios Corp. (“VSC”) for the sale of its direct sales business line and related entities (the “Direct Sales Business Line”). The Transaction closed on August 30, 2025.\n \n\n “This transaction is a significant step forward and marks the beginning of a new era for Enthusiast Gaming,” said Alex Macdonald, Chief Executive Officer of Enthusiast Gaming. “We know who we are and our strategy is clear: we build the tools, platforms, and experiences that make every moment of play more meaningful, and we will win by investing in properties that serve gamers directly, expanding our IP, and continuing to execute on our product-first vision. With our business now aligned around our core strengths, and with a strengthened balance sheet, we are now fully focused on executing this strategy and capitalizing on the many core growth opportunities we have already identified across both audience and revenue.”\n \n\n As disclosed in the Company’s August 19, 2025, press release, under the terms of the Transaction, VSC acquired the Direct Sales Business Line, including Omnia Media Inc. and GameCo Esports Canada Inc. (collectively, the “Acquired Entities”), for cash consideration of C$900,000, which had been paid to the Company as a non-refundable deposit to secure the Transaction, as well as the assumption of all existing and ongoing liabilities of the Direct Sales Business Line and Acquired Entities as of closing. As of June 30, 2025, the net liability position of the Direct Sales Business Line and acquired entities being assumed by VSC would have been approximately US$2.6 million.\n \n\n The Transaction is expected to result in approximately C$10 million of cost savings on an annual basis, resulting in material improvements in Adjusted EBITDA, while providing over C$4.5 million of balance sheet improvement and other significant working capital benefits to the Company.\n \n\n Following the closing of the Transaction, the Company remain...