Enthusiast closes direct sales business line sale

Mr. Alex Macdonald reports ENTHUSIAST GAMING COMPLETES DIRECT SALES BUSINESS DIVESTMENT Enthusiast Gaming Holdings Inc. has completed its previously announced transaction with Vertiqal Studios Corp. for the sale of its direct sales business line and related entities. The transaction closed on Aug. 30, 2025. "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." As disclosed in the company's Aug. 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., for cash consideration of $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 continuing 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 $2.6-million (U.S.). The transaction is expected to result in approximately $10-million of cost savings on an annual basis, resulting in material improvements in adjusted earnings before interest, taxes, depreciation and amortization, while providing over $4.5-million of balance sheet improvement and other significant working capital benefits to the company. Following the closing of the transaction, the company remains focused on operating and expanding its profitable portfolio of digital assets, including leading gaming properties such as U.GG, Icy-Veins, TheSimsResource, Addicting Games, PocketGamer, Fantasy Football Scout, LiveFPL, GameKnot, PoE-Vault, ProBuildStats, TrackLock.gg, EV.IO, Arcade Cloud and the Countdown, amongst others, as well as the company's global business-to-business event series, PocketGamer Connects, which properties and events represent the company's Web programmatic advertising, subscription and event revenue streams. About Enthusiast Gaming Holdings Inc. Enthusiast Gaming builds tools, platforms and experiences that make every moment of play more meaningful. Its portfolio of owned and operated digital properties includes some of the most recognizable names in gaming, such as U.GG, Icy-Veins, TheSimsResource, PocketGamer and Addicting Games, as well as the global B2B event series PocketGamer Connects. Through these assets, Enthusiast Gaming generates revenue from programmatic advertising, subscriptions and events, and is focused on expanding its owned intellectual property and deepening direct engagement with its audience. We seek Safe Harbor.