Enthusiast Gaming completes direct sales business divestment

Enthusiast Gaming (EGLXF) completed its previously announced transaction with Vertiqal Studios for the sale of its direct sales business line and related entities. The Transaction closed on August 30, 2025. As disclosed in the Company’s August 19, press release, under the terms of the Transaction, VSC acquired the Direct Sales Business Line, including Omnia Media Inc. and GameCo Esports Canada, for cash consideration of C$900,000, which had been paid to the Company as a non-refundable deposit to secure the Transaction, as well as the assumption of all existing and ongoing liabilities of the Direct Sales Business Line and Acquired Entities as of closing. As of June 30, the net liability position of the Direct Sales Business Line and acquired entities being assumed by VSC would have been approximately $2.6M. The Transaction is expected to result in approximately C$10M of cost savings on an annual basis, resulting in material improvements in Adjusted EBITDA, while providing over C$4.5M of balance sheet improvement and other significant working capital benefits to the Company. Following the closing of the Transaction, the Company remains focused on operating and expanding its profitable portfolio of 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, as well as the Company’s global B2B event series, PocketGamer Connects, which properties and events represent the Company’s web programmatic advertising, subscription, and events revenue streams.