TORONTO, Dec. 02, 2019 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (TSXV: EGLX) (FSE: 2AV) (“Enthusiast Gaming” or the “Company”), the largest gaming network in North America and the United Kingdom, is pleased to announce that it has filed its unaudited Q3 2019 Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the three and nine month periods ending September 30, 2019. These filings are available for download on the Company’s profile at www.sedar.com. All figures are expressed in Canadian dollars unless otherwise stated.
On August 29, 2019, Enthusiast, Aquilini GameCo, and Luminosity Gaming completed a Plan of Arrangement, which resulted in the creation of a leading publicly traded video game media and esports company in North America. Exiting Q3, the combined platform consists of over 100 gaming related websites, 900 YouTube channels, seven professional esports teams, over 50 celebrity gaming influencers and content creators and almost 30 live events worldwide, including major activations in Toronto, London, Helsinki, Hong Kong and Seattle. Enthusiast Gaming’s network reaches over 200 million gamers globally on a monthly basis across its Media, Esports and Events divisions.
The Financial Statements and MD&A for the three and nine months ended September 30, 2019 include the financial results of Aquilini GameCo for the three and nine months ended September 30, 2019, and the financial results of Luminosity Gaming and J55 Capital Corp. from August 27, 2019 to September 30, 2019, and the financial results of the former Enthusiast Gaming group including its subsidiaries from August 29, 2019, to September 30, 2019. The comparative balances as at December 31, 2018 and the comparative financial results for the three and nine month periods ended September 30, 2018 are those of Aquilini GameCo prior to the Luminosity Gaming Acquisition, the J55 Capital Corp. Amalgamation, and the Enthusiast Plan of Arrangement.
Accordingly, the recognized revenue for Q3 2019 on the Financial Statements of $3.0 million was generated on a consolidated basis by Enthusiast between August 29 and September 30, 2019, and by Luminosity Gaming between August 27 and September 30, 2019. Between July 1 and their respective transaction dates, Enthusiast and Luminosity collectively generated an additional $3.3 million of revenue, for an aggregate pro forma consolidated revenue for the three month period ending September 30, 2019 of $6.3 million.
Adrian Montgomery, CEO of Enthusiast Gaming commented, “I am pleased with our Q3 results with consolidated, pro forma revenue of $6.3 million in the quarter. We closed a transformational merger in the quarter between Enthusiast, Aquilini GameCo and Luminosity and we are focused on executing our growth strategy through investing in revenue optimization tools and monetization strategies to drive higher revenue per viewer and higher margins.” He continued, “It’s important for us to remain diligently focused on our growth strategy and continue improving on our execution. I am looking forward to a strong finish to the year.”
Third Quarter Financial and Operating Highlights
Events to Subsequent to the Quarter
Certain information provided in this news release is extracted from the unaudited condensed consolidated interim Financial Statements and MD&A of the Company for the three and nine months ended September 30, 2019, and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the unaudited condensed consolidated interim Financial Statements and MD&A that an investor can properly analyze this information.
Investor Relations Update
Enthusiast Gaming would also like to provide an update on its overall combined Investor Relations and Marketing Strategy. The Company has entered into agreements with each of Strike Communications Inc. (“Strike”), New Era Publishing Inc. (“New Era”) and Native Ads Inc. (“Native Ads”). Strike provides marketing and investor relations services, including the development of a comprehensive capital markets and investor relations strategy for an indefinite term with the agreement effective July 23, 2018; New Era provides capital markets advisory, media and editorials and a comprehensive Institutional Analysis report for 6 month term which started on September 1, 2019; and Native Ads provides a three month programmatic digital media advertising campaign which started on September 9, 2019. The Company will pay consideration of $8,000 per month to Strike, US$400,000 (with US$200,000 due on signing and US$200,000 due on November 11, 2019) to New Era, and CAD$150,000 to Native Ads (paid in full on September 17, 2019), in each case, payable from the general working capital of the Company. Enthusiast may, at its sole discretion and subject to the approval of the TSXV, grant stock options to Strike under its stock option plan. Each of the agreements are subject to the approval of the TSXV.
Strike is an independent marketing and communications firm based out of Vancouver, B.C., New Era is an independent research firm that is based out of Vancouver B.C., and Native Ads is a full-service ad agency that operates an ad exchange for content publishers with an office in Vancouver, B.C. The principal of Strike currently holds 9,150 common shares in the capital of the Company (“Shares”) and 15,825 options to purchase Shares. Neither New Era or Native Ads, nor any of their respective directors and officers own any securities of the Company or any right to acquire securities of the Company, and each of them are privately owned and are arm’s length parties to the Company.
About Enthusiast Gaming
Enthusiast Gaming (TSX.V: EGLX)(FSE: 2AV) is building the world’s largest network of communities for gamers and esports fans. Already the largest gaming network in North America and the United Kingdom, the Company’s business is comprised of three main pillars: Media, Events and Esports. Enthusiast Gaming’s digital media platform includes 100+ gaming related websites and 900 YouTube channels which collectively reach 150 million visitors monthly. The media network generates over 30 billion ad requests and over 1 billion page views per month. Enthusiast’s esports division, Luminosity Gaming, is a leading global esports franchise that consists of 7 professional esports teams under ownership and management, including the Vancouver Titans Overwatch team and the Seattle-based Call of Duty team. Collectively, the integrated ecosystem reaches over 200 million gaming enthusiasts on a monthly basis. Enthusiast Gaming’s event business, owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.com) and the largest mobile gaming event in Europe, Pocket Gamer Connects. For more information on the Company, visit www.enthusiastgaming.com. For more information on Luminosity Gaming, please visit luminosity.gg.
Chief Financial Officer
Head of Investor Relations & Marketing
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations and future actions of the Company. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Enthusiast to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to Enthusiast, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of the Company should be considered highly speculative.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.