Leadership Changes - Alex Macdonald has been appointed as Chief Executive Officer, effective July 6, 2025, succeeding Adrian Montgomery [1][2] - J.B. Elliott has been appointed as President and Chief Operating Officer, previously serving as Chief Strategy Officer and General Counsel [3] - Nathan Teal has been appointed as Interim Chief Financial Officer, bringing over 20 years of experience in public accounting and financial reporting [4] Business Strategy and Divestment - The company has signed a letter of intent (LOI) with an entity controlled by Adrian Montgomery for the divestment of its direct sales business line and related creative assets [5] - The direct sales business includes Omnia Media Inc. and GameCo Esports Canada Inc., which hold the company's YouTube CSP licenses and esports operations, respectively [5] - Following the transaction, the company will retain its owned and operated content channels, ensuring continuity in operations [6] Financial Implications - The proposed transaction includes a purchase price of US$1,000,000, with the purchaser assuming certain liabilities related to the acquired entities [7][8] - The transaction is expected to result in approximately $10 million of annual cost savings, leading to material improvements in Adjusted EBITDA and significant working capital benefits [11] Future Business Focus - Post-transaction, the company will continue to operate its portfolio of owned and operated digital assets, including major gaming properties and events [12] - The company aims to deepen direct engagement with its audience and expand its owned intellectual property, focusing on monetizing more effectively [13][14]
Enthusiast Gaming Announces CEO Transition and Strategic Divestment of Direct Sales Business