Core Points - Enthusiast Gaming Holdings Inc. has announced a debt financing and forbearance transaction aimed at supporting its recapitalization and long-term business objectives [1] - The company is focusing on its high-performing digital gaming media assets following the divestment of its direct sales business line [1][2] - A strategic review process has been initiated to explore opportunities for strengthening the balance sheet and unlocking shareholder value [2] Debt Financing and Forbearance Agreements - The transaction includes a non-revolving term loan of $2,000,000, which will be used for working capital purposes [5] - The company has entered into forbearance agreements with its lenders, allowing them to forbear from demanding repayment of outstanding debts [6][7] - A cost-cutting plan is to be implemented to achieve annualized cost savings of at least $3,000,000 [8] Terms of the Term Loan and Warrant Issuance - The term loan carries a fixed interest rate of 16.0% per annum, with specific conditions for interest payments [9] - The company plans to issue 6,005,178 warrants to lenders, with an exercise price set at $0.083, a 15% premium over the average price of common shares [11] - The term loan is due by July 12, 2028, and can be prepaid without penalty before March 31, 2026 [9][10] Strategic Review and Special Committee - A Special Committee has been formed to oversee the strategic review process and evaluate potential alternatives [3][4] - Oakvale Capital Partners LLP has been engaged as the financial advisor for the strategic review [4] - The goal is to enter into a definitive agreement for a strategic transaction by the end of 2025 [4]

Core Insights - Flow Capital Corp. has successfully closed a US$5.0 million secured loan investment in a prominent US-based hospitality management company and technology platform, as part of a larger US$50 million senior secured unitranche loan transaction led by Beedie Investments Ltd. [1] - This transaction highlights Flow Capital's position as a preferred partner for high-growth companies in North America and institutional capital providers [2] Company Overview - Flow Capital Corp. is a publicly listed provider of flexible growth capital and alternative debt solutions, focusing on supporting high-growth companies since its inception in 2018 [5] - The company has financed businesses in the US, UK, and Canada, enabling them to achieve growth without the dilutive effects of equity financing or the complexities of traditional bank loans [5] - Flow Capital primarily targets revenue-generating, VC-backed, and founder-owned companies seeking between US$2 million and US$10 million in capital for expansion [5] Beedie Capital Overview - Beedie Capital is a multi-strategy direct investment platform managing alternative investments for Beedie, one of the largest private companies in Western Canada [3] - The platform employs a flexible, evergreen mandate and adopts an agnostic approach to the duration, structure, and size of its investments [3] - Beedie Capital focuses on sectors such as Technology, Tech-enabled Services, and Metals and Mining, aiming to grow its invested capital alongside the enterprise value of its investments [4]