Enthusiast Gaming Announces CEO Transition and Strategic Divestment of Direct Sales Business

Alex Macdonald appointed CEO; J.B. Elliott appointed President & COO, Nathan Teal Interim CFO

LOI signed with entity controlled by Adrian Montgomery for divestment of direct sales business line and related creative assets

Company sharpens focus on profitable owned and operated gaming assets

TORONTO, July 07, 2025 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX:EGLX) is pleased to announce the appointment of Alex Macdonald as Chief Executive Officer, effective July 6, 2025. Mr. Macdonald has served as Chief Financial Officer since January 1, 2025, and previously from 2019 to 2023. A founding executive of Enthusiast Gaming, Mr. Macdonald has been instrumental in the Company’s formation, growth, and evolution. He played a key leadership role in taking the Company public, leading multiple financings and acquisitions, and driving significant audience and revenue growth. He has also directly overseen several of Enthusiast Gaming’s flagship properties, including TheSimsResource and U.GG, as well as the Company’s programmatic revenue, ad tech, and subscription operations.

Mr. Macdonald succeeds Adrian Montgomery, who stepped down from his role as Interim CEO, effective July 6, 2025. Mr. Montgomery was the architect of the Company and central to building Enthusiast Gaming into a recognized name in gaming media. The Board and management thank Adrian for his vision, leadership, and years of service in guiding the Company through its formative years and foundational growth.

JB Elliott has been appointed President and Chief Operating Officer. Mr. Elliott has been with Enthusiast Gaming since 2022, most recently serving as Chief Strategy Officer and General Counsel. He has played a central role in shaping the Company’s corporate strategy and development, while also actively managing product teams, audience growth, and operations, and directly overseeing key properties including Icy Veins and Addicting Games.

Nathan Teal has been appointed Interim Chief Financial Officer. He has been with Enthusiast Gaming for six years, most recently as SVP Finance, and previously as VP Finance since 2019. With over 20 years of experience in public accounting, audit, and financial reporting, Mr. Teal brings deep expertise in digital media and a strong track record with publicly traded companies.

LOI for the Direct Sales Business

The Company also announced that it has entered into a letter of intent (the “LOI”) with an entity controlled by Adrian Montgomery (the “Purchaser”), whereby the Purchaser proposes to acquire the direct sales business carried on by the Company, being primarily comprised of (i) Omnia Media Inc., being the entity that holds the Company’s YouTube CSP licenses, (ii) GameCo Esports Canada Inc. (together with Omnia Media Inc., the “Acquired Entities”), being the entity that holds the Company’s esports operations, including Luminosity Gaming, and (iii) those assets and contracts of the Company specifically related to the direct sales business currently operated within Enthusiast Gaming, including certain systems, processes, and personnel (the “Direct Sales Business Line”).

As part of the proposed transaction (the “Transaction”), Enthusiast Gaming will retain its owned and operated content channels, including Arcade Cloud, The Countdown, BCC, and Wisecrack, which will be transferred out of the Acquired Entities prior to closing.

The proposed consideration for the Transaction includes a purchase price of US$1,000,000, to be satisfied through a vendor take-back note, payable in connection with future liquidity events involving the Purchaser or the acquired assets. In addition, the Purchaser will assume certain liabilities and commitments related to the Acquired Entities and the Direct Sales Business Line.

Under the LOI, the Purchaser has agreed to assume full economic responsibility for the Acquired Entities and Direct Sales Business Line in the period leading up to closing, subject to closing conditions and adjustments.

Following closing, the Purchaser will enter into a transition services agreement to ensure the orderly continuation of operations and fulfillment of all ongoing customer campaigns. To maintain business continuity, the Purchaser will also enter into a commercial agreement to represent Enthusiast Gaming’s remaining owned and operated properties for direct sales, on a revenue share basis. These arrangements are designed to ensure uninterrupted service for clients and a seamless transition for all stakeholders.

The LOI remains subject to the settlement and execution of a definitive agreement, which the parties intend to finalize by July 31, 2025, as well as receipt of customary approvals and other closing conditions.

The Transaction is expected to result in approximately $10 million of cost savings on an annual basis, resulting in material improvements in Adjusted EBITDA and providing significant working capital benefits to the Company.

Future Business of Enthusiast Gaming

Following the completion of the proposed transaction, Enthusiast Gaming will continue to operate its portfolio of owned and operated digital assets, including leading gaming properties such as U.GG, Icy-Veins, TheSimsResource, Addicting Games, PocketGamer, Fantasy Football Scout, LiveFPL, GameKnot, PoE-Vault, ProBuildStats, TrackLock.gg, EV.IO, Arcade Cloud, and The Countdown, amongst others. The Company will also continue to operate PocketGamer Connects, its leading mobile gaming B2B event series, with annual events in London, Helsinki, San Francisco, Barcelona, Dubai, Jordan, and Shanghai, amongst other global markets, with additional new events planned for the second half of 2025. These properties and events represent the Company’s web programmatic advertising, subscription, and events revenue streams.

“The engine of this Company has always been our highly valued owned and operated web properties. These are the platforms we’ve built, grown, and consistently derived profit from, supported by global touchpoints like Pocket Gamer Connects,” said Alex Macdonald, CEO of Enthusiast Gaming. “The cash flow from these assets has long funded our content and direct sales B2B efforts, but our future lies in going deeper with our B2C business. We exist to serve gamers, and it’s time we fully embrace that identity. We’re evolving from passive media to meaningful engagement, building tools, platforms, and experiences that bring gamers closer to the worlds they love.

We’re expanding our owned IP, scaling our commerce models, and making our platforms essential to gaming culture, all while monetizing more effectively and efficiently than ever before. This is our DNA. We are focused, product driven, and gamer first. It’s where we’ve built our edge, and it’s where we’re going to win.”

About Enthusiast Gaming
Enthusiast Gaming builds tools, platforms, and experiences that gamers use every day. Its portfolio of owned and operated digital properties includes some of the most recognizable names in gaming, such as U.GG, Icy-Veins, TheSimsResource, PocketGamer, Addicting Games, and Fantasy Football Scout, as well as the global B2B event series PocketGamer Connects. Through these assets, Enthusiast Gaming generates revenue from programmatic advertising, subscriptions, and events, and is focused on expanding its owned IP and deepening direct engagement with its audience.

Contacts
Enthusiast Gaming: Alex Macdonald, Chief Executive Officer
Investors: investor@enthusiastgaming.com
Media: press@enthusiastgaming.com

Forward Looking Information

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 Gaming anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. 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 foregoing) be taken, occur, be achieved, or come to pass. Forward-looking statements in this news release include, but are not limited to, statements regarding the LOI, the Transaction and the associated cost savings anticipated in connection therewith, and the Company’s strategic initiatives.

Forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, expectations and assumptions concerning interest and foreign exchange rates; capital efficiencies, cost saving and synergies; growth and growth rates; the success in the esports and media industry; and the Company’s growth plan. While Enthusiast Gaming considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; the timing and filing of the final base shelf prospectus and corresponding Registration Statement; the potential offering of any Securities by the Company; uncertainty with respect to the completion of any future offering; the ability to obtain applicable regulatory approvals for any contemplated offerings; the ability of the Company to negotiate and complete future funding transactions; adverse industry events; and future legislative, tax and regulatory developments. Readers are cautioned that the foregoing list is not exhaustive. For more information on the risk, uncertainties and assumptions that could cause anticipated opportunities and actual results to differ materially, please refer to the public filings of Enthusiast Gaming which are available on SEDAR+ at www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. Enthusiast Gaming disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.

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