TORONTO, Dec. 31, 2019 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (OTCQB: ENGMF) commenced trading on the OTCQB Venture Market (“OTC”) on December 13, 2019 and has been requested by the OTC to comment on recent marketing activity concerning its common shares traded on the OTC marketplace.
As disclosed in a press release on December 2, 2019, Enthusiast Gaming engaged Native Ads, Inc. (“Native Ads”) to provide strategic digital media and programmatic advertising to help build brand awareness for Enthusiast Gaming and to gain valuable data, insight and lead generation. As explained in that press release, Enthusiast Gaming also paid Native Ads for the creation and distribution of certain marketing materials which were published on December 17, 2019. The Company did not have editorial control over the materials, although it reviewed a draft for any factual inaccuracies about the Company. The Company is not able to determine whether the materials had any material impact on the trading of the Company’s common shares. The OTC has advised the Company that it has included a stock promotion flag on the Company’s profile as a result of these materials, which will remain in place until 15 days following the end of that marketing campaign.
The materials prepared by Native Ads presented a general overview of the Company’s business and operations and the growth potential of global gaming and the esports industry. The OTC believes that the materials may have included speculative language and forward-looking statements about the Company’s future prospects. As such, the Company is taking immediate steps to cause the discontinuance of the dissemination of these materials.
Upon inquiry of the Company’s management, directors, control persons and third-party service providers, to the best of the Company’s knowledge during the past 90 days no such persons executed any sales transactions of the Company’s securities during such time period. During the prior 90 days, the Company has not issued any securities at prices constituting a discount to the then current market price (other than pursuant to previously issued convertible securities).
Since commencing trading as Enthusiast Gaming Holdings Inc. on September 9, 2019, the Company has engaged the following third parties to provide investor relations, public relations, marketing, advertising and other related activities: Strike Communications Inc., Native Ads, Inc., New Era Publishing, Inc., MZ IR Group and Generation Advisors.
About Enthusiast Gaming
Enthusiast Gaming (TSX.V: EGLX)(OTCQB: ENGMF)(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
CONTACT:
Julia Becker
Head, Investor Relations & Marketing
(604) 785-0850
jbecker@enthusiastgaming.com
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.