2 days ago
Enthusiast Gaming Announces Updates on Divestment of Direct Sales Business
TORONTO, Aug. 19, 2025 (GLOBE NEWSWIRE) — Enthusiast Gaming Holdings Inc. ('Enthusiast Gaming' or the 'Company') (TSX:EGLX) today announced that it has entered into a binding letter of intent (the 'Binding LOI') with Vertiqal Studios Corp. ('VSC') pursuant to an unsolicited offer from VSC to acquire the direct sales business carried on by the Company (the 'Direct Sales Business Line'). The entities and assets to be acquired in the transaction (the 'Transaction') are the same as those set out in the Company's prior announcement in respect of the divestment of the Direct Sales Business Line on July 7, 2025 (the 'July 7 Press Release'). Prior to entering into the Binding LOI with VSC, the Company terminated its existing non-binding letter of intent in respect of the Direct Sales Business Line as set out in the July 7 Press Release.
Under the terms of the Transaction, VSC will acquire the Direct Sales Business Line and related acquired entities for cash consideration of C$900,000, which has 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 the closing date. 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.
