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Enthusiast Gaming to Divest Direct Sales Business to Vertiqal Studios

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Enthusiast Gaming to Divest Direct Sales Business to Vertiqal Studios

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Enthusiast Gaming Holdings ( (TSE:EGLX) ) has issued an announcement.

Enthusiast Gaming Holdings Inc. has announced a binding letter of intent with Vertiqal Studios Corp. to divest its Direct Sales Business Line for C$900,000, following the termination of a previous non-binding agreement. This transaction, expected to close by September 5, 2025, includes the assumption of approximately US$2.6 million in liabilities by VSC. This strategic move is likely to impact Enthusiast Gaming’s operations by allowing it to focus on its core business areas and potentially improve its financial standing by offloading liabilities.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.10 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

Spark’s Take on TSE:EGLX Stock

According to Spark, TipRanks’ AI Analyst, TSE:EGLX is a Neutral.

Enthusiast Gaming Holdings’ overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and persistent losses. While technical analysis shows mixed signals, the company’s valuation remains unattractive due to ongoing losses. However, recent corporate events indicate strategic growth and innovation, which could positively influence future performance.

To see Spark’s full report on TSE:EGLX stock, click here.

More about Enthusiast Gaming Holdings

Enthusiast Gaming is a company that develops tools, platforms, and experiences for gamers. Its portfolio includes well-known digital properties such as U.GG, Icy-Veins, TheSimsResource, PocketGamer, Addicting Games, and Fantasy Football Scout, along with the global B2B event series PocketGamer Connects. The company generates revenue through programmatic advertising, subscriptions, and events, focusing on expanding its owned intellectual property and enhancing direct engagement with its audience.

Average Trading Volume: 180,959

Technical Sentiment Signal: Sell

Current Market Cap: C$16.71M

See more insights into EGLX stock on TipRanks’ Stock Analysis page.

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