TORONTO, Sept. 29, 2025 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX: EGLX), a leading digital publisher focused on building tools, platforms, and experiences for gamers, wishes to notify shareholders that in case of disruption due to the ongoing Canada Post strike (the “Postal Strike”), the Company's meeting materials (the "Meeting Materials") for the Company's upcoming annual general and special meeting to be held on October 28, 2025 at 1:00 p.m. (Toronto ...

Company Overview - Enthusiast Gaming Holdings Inc. is a leading digital publisher focused on creating tools, platforms, and experiences for gamers [3] - The company owns a portfolio of digital properties, including U.GG, Icy-Veins, TheSimsResource, PocketGamer, Addicting Games, and Fantasy Football Scout, as well as the B2B event series PocketGamer Connects [3] - Revenue is generated through programmatic advertising, subscriptions, and events, with a focus on expanding owned intellectual property and enhancing direct audience engagement [3] Upcoming Events - The annual general meeting of Enthusiast Gaming is scheduled to be held virtually on October 28, 2025 [1] - The Toronto Stock Exchange has granted an extension for the company to hold its annual general meeting by this date [2] - Meeting materials will be available on the company's profile on SEDAR+ and its website around September 26, 2025 [2]

Company Overview - Enthusiast Gaming Holdings Inc. is a leading digital publisher focused on creating tools, platforms, and experiences for gamers [3] - The company owns and operates a portfolio of digital properties, including U.GG, Icy-Veins, TheSimsResource, PocketGamer, Addicting Games, and Fantasy Football Scout, as well as the B2B event series PocketGamer Connects [3] - Revenue is generated through programmatic advertising, subscriptions, and events, with a focus on expanding owned intellectual property and enhancing direct audience engagement [3] Annual General Meeting - The annual general meeting is scheduled to be held virtually on October 28, 2025 [1] - The Toronto Stock Exchange has granted an extension for the meeting to be held on or before this date [2] - Meeting materials will be available on the company's profile on SEDAR+ and its website around September 26, 2025 [2]

Core Insights - Enthusiast Gaming Holdings Inc. has announced significant updates to its casual gaming platform, Addicting Games, focusing on a modern, mobile-first design aimed at cross-platform growth [1][5] Platform Enhancements - The platform refresh includes a cleaner design, streamlined navigation, and optimized performance, enhancing the experience for over one million monthly players [2][3] - Key enhancements feature faster load times, a modernized UI/UX, and new mobile-optimized features, making it easier for users to access gameplay [3] Strategic Positioning - Addicting Games is a vital part of Enthusiast Gaming's portfolio, creating synergies with the PocketGamer brand, which is a leading mobile gaming destination [4] - The company aims to leverage the growth of casual and mobile gaming, creating a connected ecosystem that enhances engagement and monetization opportunities [5] Company Overview - Enthusiast Gaming focuses on building tools and platforms for gamers, generating revenue through programmatic advertising, subscriptions, and events, while expanding its owned IP [6]

Core Viewpoint - Enthusiast Gaming has completed the sale of its Direct Sales Business Line to Vertiqal Studios Corp, marking a strategic shift towards focusing on core strengths and growth opportunities in the gaming sector [1][2]. Transaction Details - The transaction closed on August 30, 2025, with Vertiqal Studios acquiring the Direct Sales Business Line, including Omnia Media Inc. and GameCo Esports Canada Inc., for cash consideration of C$900,000 [1][2]. - VSC will assume all existing liabilities of the Direct Sales Business Line, which had a net liability position of approximately US$2.6 million as of June 30, 2025 [2]. Financial Impact - The transaction is expected to yield approximately C$10 million in annual cost savings, leading to significant improvements in Adjusted EBITDA and over C$4.5 million in balance sheet enhancement [3]. Strategic Focus - Post-transaction, the company aims to operate and expand its profitable digital asset portfolio, which includes notable gaming properties and a global B2B event series [4][5]. - The company is committed to building tools and platforms that enhance gaming experiences and is focused on expanding its intellectual property and audience engagement [2][5].

Core Points - Enthusiast Gaming Holdings Inc. has entered into a binding letter of intent with Vertiqal Studios Corp. to acquire its Direct Sales Business Line for cash consideration of C$900,000 [1][2] - The transaction includes the assumption of all existing and ongoing liabilities of the Direct Sales Business Line, which had a net liability position of approximately US$2.6 million as of June 30, 2025 [2] - The closing of the transaction is expected to occur on or about September 5, 2025 [3] Company Overview - Enthusiast Gaming builds tools, platforms, and experiences for gamers, operating a portfolio of digital properties including U.GG, Icy-Veins, and others [4] - The company generates revenue through programmatic advertising, subscriptions, and events, focusing on expanding its owned intellectual property and enhancing direct engagement with its audience [4]

Core Insights - Enthusiast Gaming Holdings Inc. reported a significant decline in revenue for Q2 2025, totaling $10.0 million, down 32% from $14.7 million in Q2 2024, primarily due to decreases in direct sales and the Omnia video platform [6][8][10] - The company is focusing on its core gaming platforms and has decided to exit non-core segments, which were the main source of losses, to enhance operational efficiency and profitability [3][11] Financial Highlights - Revenue for Q2 2025 was $10.0 million, a decrease of 32% compared to $14.7 million in Q2 2024 [6][8] - Gross profit decreased to $8.0 million from $9.7 million in Q2 2024, but gross margin improved to 80.0% from 66.2% [6][9] - Operating expenses were reduced to $10.6 million, down from $11.6 million in Q2 2024, reflecting cost-saving initiatives [6][9] - Adjusted EBITDA loss increased to $1.4 million from a loss of $0.4 million in Q2 2024, driven by decreased gross profit [6][9] - The net loss for Q2 2025 was $39.8 million, compared to $2.9 million in Q2 2024, which included non-cash impairment charges of $45.3 million [10][11] Business Highlights - U.GG experienced a 39% growth in programmatic yield in Q2 2025 compared to Q1 2025, supported by ad tech optimizations [6] - Icy Veins continued to perform strongly, launching expanded coverage for new titles and enhancing its traffic and yield [6] - The Sims Resource launched a new LookBuilder tool to enhance user engagement [6] - PocketGamer.com saw a year-over-year growth of over 26% in pageviews in Q2 2025, serving over 10 million active users [6] Strategic Updates - The company is divesting its direct sales business line and related creative assets, focusing on a product-first strategy [11] - Enthusiast Gaming plans to strengthen its balance sheet and will provide updates to shareholders as milestones are reached [11]

Group 1 - Enthusiast Gaming Holdings Inc. has successfully closed a debt financing transaction, receiving a non-revolving term loan of $2,000,000 [1] - The transaction was arranged under a forbearance and first supplemental credit agreement involving the Company, its subsidiaries, Beedie Investments Ltd. as the administrative and collateral agent, and lenders led by Beedie Capital [1] - The agreement was finalized on July 10, 2025, with further details available in the Company's press release dated the same day [1] Group 2 - Enthusiast Gaming operates a portfolio of digital properties that are well-known in the gaming industry, including U.GG, Icy-Veins, TheSimsResource, and others [2] - The Company generates revenue through programmatic advertising, subscriptions, and events, while focusing on expanding its owned intellectual property and enhancing direct engagement with its audience [2]

Core Insights - Enthusiast Gaming Holdings Inc. has launched support for Rematch on its U.GG platform, accumulating over 100,000 player profiles in just two weeks [1][4] - Rematch, developed by Sloclap, is an arcade-style football game that gained over one million unique players within the first 24 hours of its launch [2] - The integration allows players to access real-time leaderboards and detailed performance metrics, with stats refreshed every three minutes [3] Company Overview - Enthusiast Gaming focuses on building tools and platforms for gamers, with a portfolio that includes U.GG and other well-known digital properties [5] - The company generates revenue through programmatic advertising, subscriptions, and events, and aims to expand its owned intellectual property while deepening audience engagement [5]

Core Insights - Enthusiast Gaming Holdings Inc. has launched LookBuilder, a virtual fitting room for The Sims Resource, enhancing user experience by allowing players to preview and customize outfits before downloading them [1][3]. Company Overview - Enthusiast Gaming focuses on building tools, platforms, and experiences for gamers, with a portfolio that includes well-known digital properties such as U.GG, Icy-Veins, and The Sims Resource [5]. Product Launch Details - LookBuilder is a browser-based, 3D-rendered, real-time outfit preview engine that allows players to combine items like hair, clothing, and accessories to create complete looks [3]. - The feature aims to improve content discovery and personalization for both free and paid users, driving deeper engagement on the platform [3][4]. Strategic Importance - The CEO of Enthusiast Gaming emphasized that LookBuilder is a unique innovation in the industry, providing real value to gamers and enhancing the subscription offering [4]. - The underlying technology of LookBuilder may lead to new product experiences beyond The Sims Resource, indicating a strategic direction towards disciplined product development and meaningful advancements [4].