EAST SIDE GAMES GROUP ANNOUNCES CLOSING OF STRATEGIC PRIVATE PLACEMENT WITH NEW INVESTORS AND INSIDERS, SETTING FOUNDATION FOR RENEWED GROWTH STRATEGY

About this update from East Side Games Group Inc

The transaction will strengthen balance sheet, broaden the shareholder base, and support a refocused operating strategy VANCOUVER, BC, May 21, 2026 /CNW/ - East Side Games Group (TSX: EAGR) (OTC: EAGRF) (the "Company" or "ESGG"), Canada's leading free-to-play mobile game group, is pleased to announce the closing of its previously announced non-brokered private placement of units of the Company (the "Units") for aggregate gross proceeds of $2.95 million (the "Offering"). The Company issued an aggregate of 26,896,816 Units at a price of $0.11 per Unit. Each Unit consists of one common share of the Company and one common share purchase warrant. Each warrant is exercisable to acquire one common share of the Company at a price of $0.14 per share until May 12, 2029, subject to standard anti-dilution adjustments. The securities issued under the Offering are subject to a statutory hold period expiring on September 13, 2026, in accordance with applicable Canadian securities laws. The Offering included participation from a group of new strategic investors alongside meaningful participation from existing insiders, including Derek Lew, a director of the Company, who subscribed for $1.0 million, representing 9,090,909 Units, and Russell Ovans, a director of the Company, who subscribed for $22,000, representing 200,000 Units. The Company intends to use the net proceeds of the Offering to repay indebtedness, fund operating expenses, and provide additional general working capital. The transaction strengthens the Company's balance sheet, broadens its shareholder base, and provides the financial flexibility required to execute the strategic plan outlined in the Company's March 31, 2026 corporate update. In connection with the closing of the Offering, the Company is reaffirming its previously issued 2026 outlook of $50–$56 million in revenue and 15–18% A-EBITDA margins. Jason Bailey, Executive Chairman and Chief Executive Officer of the Company, commented: "We are excited to pursue the next chapter of East Side Games Group with a new capital markets strategy, a renewed balance sheet, additional visionary shareholders, and a focus on our profitable core portfolio. We want to thank our new and existing shareholder base for their faith in us and our ability to refocus, right-size and steer this company into a profitable ...

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