LOS ANGELES, July 15, 2024 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (TSX:EGLX) ("Enthusiast Gaming" or the "Company"), a leading gaming and media company, announced today that it has received a $20 million four-year non-revolving term loan (the "Term Loan"). The financing was arranged pursuant to a credit agreement (the "Credit Agreement") with lenders (the "Lenders") led by Beedie Investments Ltd. ("Beedie Capital"), which is also the administrative and collateral agent. "This strategic investment significantly bolsters our financial position, providing $20 million of additional liquidity, which will enable us to accelerate our vision of uniting gaming enthusiasts globally and delivering exceptional value to our partners and communities," said Adrian Montgomery, Interim CEO & Chairman of the board of directors (the "Board") of Enthusiast Gaming. "We are delighted to partner with Beedie Capital, whose reputation and successful history of supporting high-growth companies is unmatched." "With the operations of the Company now effectively self-sustaining, we expect this extra capital to unlock significant growth opportunities. We appreciate the support of Beedie Capital and the Lenders, who share our confidence in the future of Enthusiast Gaming's business model," said Felicia DellaFortuna, CFO of Enthusiast Gaming. "After a thorough evaluation of Enthusiast Gaming's business model, market position, and growth potential, we are confident in their trajectory," said David Bell, Managing Director, Beedie Capital. "Enthusiast Gaming has successfully built one of the largest and most engaged audiences in the gaming media sector. We are excited to support their continued expansion and innovation in this dynamic industry." Terms of the Term Loan and Warrant Issuance The Term Loan bears interest at a fixed rate of 14.0% per annum calculated and payable monthly in arrears. Enthusiast Gaming will have the option until January 31, 2025 to pay the monthly interest in-kind ("PIK Interest") by adding accrued interest for that month to the outstanding principal amount of the Term Loan, which PIK Interest will accrue interest compounded monthly and be added to the outstanding principal amount of the Term Loan. After January 31, 2025, interest must be paid in cash for the remainder of the loan's term to maturity. In addition, each Lender shall be entitled, upon notice to the Company, but subject to obtaining, if applicable, stock exchange and/or shareholder approval, to elect to convert all or any portion of their respective pro-rata share of the PIK Interest into common shares of the Company ("Common Shares") at a price equal to the Market Price (as defined in TSX policy) of the Common Shares immediately prior to conversion on the Toronto Stock Exchange ("TSX"). Enthusiast Gaming has paid Beedie Capital a commitment fee equal to 2.0% of the total amount of the Term Loan. Subject to the terms of the Credit Agreement, the Term Loan will have a term of four years from the date of the close of the Term Loan and may be prepaid, subject to certain conditions including the payment of applicable prepayment fees. In connection with the Term Loan, Enthusiast Gaming has issued to the Lenders in aggregate 37,037,037 common share purchase warrants ("Warrants"), at an exercise price of $0.135, equal to a 15% premium to the five consecutive trading day volume-weighted average price of the Common Shares on July 11, ...