Enthusiast closes direct sales business line sale

Executive Summary

• Enthusiast Gaming Holdings Inc. has completed the sale of its direct sales business line and related entities to Vertiqal Studios Corp. (VSC), closing on August 30, 2025.
• The transaction involves a cash consideration of $900,000 (paid as a non-refundable deposit) and VSC assuming all existing and continuing liabilities of the divested business.
• The company expects the divestiture to yield approximately $10 million in annual cost savings, improve adjusted EBITDA, and provide over $4.5 million in balance sheet improvement.

Key Details

• Transaction Counterparties: Seller: Enthusiast Gaming Holdings Inc.; Buyer: Vertiqal Studios Corp.
• Assets Divested: Direct sales business line, including Omnia Media Inc. and GameCo Esports Canada Inc.
• Closing Date: August 30, 2025.
• Financial Consideration:
  • Cash payment of $900,000 to Enthusiast Gaming (previously paid as a non-refundable deposit).
  • VSC assumes all existing and continuing liabilities of the direct sales business line and acquired entities.
  • Net liability position of the divested assets (as of June 30, 2025) was approximately $2.6 million (U.S.).
• Strategic Impact & Financial Benefits:
  • Expected annual cost savings of approximately $10 million.
  • Material improvements in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
  • Balance sheet improvement of over $4.5 million.
  • Additional significant working capital benefits.
• Post-Transaction Focus: Enthusiast Gaming remains focused on its core digital assets and B2B events, including U.GG, Icy-Veins, TheSimsResource, Addicting Games, PocketGamer, Fantasy Football Scout, LiveFPL, GameKnot, PoE-Vault, ProBuildStats, TrackLock.gg, EV.IO, Arcade Cloud, the Countdown, and PocketGamer Connects.

Notable Quotes

• "This transaction is a significant step forward and marks the beginning of a new era for 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." — Alex Macdonald, CEO