Enthusiast Gaming closes $3M private placement, plans to go public

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By Ted Liu

Enthusiast Gaming Inc., a privately-held digital media company focused on the video game segment, has completed a non-brokered private placement of 6,467,450 units at a price of $0.47 per unit for gross proceeds of $3,039,701.

On January 2, 2018, Tova Ventures II Inc. (TSX-V: TOVA.P), a capital pool company (CPC), and Enthusiast Gaming entere into a letter of intent to effect a business combination of the two companies. The proposed transaction will be a reverse takeover of Tova by Enthusiast and will constitute Tova’s Qualifying Transaction (QT).

The closing of this private placement represents the first tranche of an ongoing offering for gross proceeds of up to $5,160,000. Enthusiast intends to use the proceeds for general corporate purposes and to identify and pursue acquisition opportunities.

Enthusiast Gaming Inc. is backed by members of York Angel Investors and Spark Angel Network which provided over $600,000 in seed funding to the company in 2016.

“We are extremely grateful to our existing and new investors for the confidence and belief they have shown in Enthusiast’s vision for the gaming industry. With this new funding, Enthusiast will continue building and strengthening its core digital platforms, through both an aggressive buy and build strategy,” said Menashe Kestenbaum, Founder & CEO of Enthusiast.

Founded in 2014, Enthusiast Gaming is the fastest growing online community of video gamers. Together with its owned digital media properties and live events, it reaches over 50 million gamers monthly with unique, curated content and user generated posts, across more than 60 websites, digital properties and social media channels worldwide. Enthusiast also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo (EGLX).

photo credit: Enthusiast Gaming