Enthusiast Gaming Announces Updates on Divestment of Direct Sales Business

Executive Summary

• Enthusiast Gaming Holdings Inc. has entered into a binding letter of intent (LOI) with Vertiqal Studios Corp. (VSC) to acquire the Company's direct sales business line.
• The transaction involves a cash consideration of C$900,000, which has already been paid as a non-refundable deposit, along with VSC assuming all existing and ongoing liabilities of the business line.
• The transaction is expected to close on or about September 5, 2025, following the termination of a previous non-binding LOI.

Key Details

• Transaction Structure: Binding Letter of Intent (LOI) for the acquisition of the Direct Sales Business Line and related entities.
• Counterparties: Seller is Enthusiast Gaming Holdings Inc. (TSX:EGLX); Buyer is Vertiqal Studios Corp. (VSC).
• Consideration: Cash payment of C$900,000.
• Payment Status: The C$900,000 has been paid to Enthusiast Gaming as a non-refundable deposit to secure the transaction.
• Liabilities: VSC assumes all existing and ongoing liabilities of the Direct Sales Business Line and acquired entities as of the closing date.
• Net Liability Position: As of June 30, 2025, the net liability position of the Direct Sales Business Line and acquired entities being assumed by VSC was approximately US$2.6 million.
• Closing Date: Expected on or about September 5, 2025.
• Prior Context: This transaction supersedes a prior non-binding LOI announced on July 7, 2025, which was terminated prior to entering into this binding LOI.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.