Enthusiast Gaming to Raise $36.9M as its Stock Price is at an All-Time High

Toronto Stock Exchange (TSX) listed Canadian esports and media company Enthusiast Gaming Holdings announced that it has upsized its previously announced bought deal financing. The underwriters of the offering, led by Canaccord Genuity, agreed to purchase an aggregate 8.87M common shares of Enthusiast Gaming at a per-share price of $5.75 CAD ($4.56 USD). In total, the offering will generate $51M ($40.41M) in gross proceeds.

As part of the offering, Enthusiast Gaming offers 6.42M shares from its treasury and will receive approximately $36.9M ($29.24M) in gross proceeds. The remaining 2.45M shares are offered by a selling shareholder, Blue Ant Media, which will receive gross proceeds of roughly $14.1M ($11.17M).

In August 2020, Enthusiast Gaming acquired media company Omnia Media from Blue Ant Media in an approximately $45.5M ($36.1M) deal. As part of the acquisition’s payment, Blue Ant received 18.45M common shares of Enthusiast Gaming, which were valued at $28.7M ($22.74M) at the time of the transaction. Blue Ant’s remaining stake of 16M shares in Enthusiast Gaming is currently worth more than $96M ($76.1M).

According to the underwriting agreement, Enthusiast Gaming and Blue Ant granted the offering’s underwriters an option to purchase up to an additional 1.33M shares at the offering price during a period of 30 days following the closing of this offering, which is expected on or about Feb. 10.

Enthusiast Gaming intends to use the net proceeds from its part of the offering “for future acquisitions, working capital, and general corporate purposes.”


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