Signs Agreement to Become Exclusive Monetization Partner
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Addicting Games network of .io games reaches over 10 million gamers a month
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Increases Enthusiast’s revenue and profits through 8 large web properties
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Advanced internet speed and browser capabilities have propelled .io and “browser multiplayer” games into a fast growing gaming sector
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Investment by Enthusiast allows Addicting Games to continue building network and developing new .io games
TORONTO, Ontario, April 11, 2019 – Enthusiast Gaming Holdings Inc. (TSX.V:EGLX) (OTCQB:EGHIF), (“Enthusiast” or the “Company”), is pleased to announce that it has entered into a Senior Convertible Debenture Purchase Agreement (the “Agreement”) to invest in Addicting Games Inc. (“Addicting Games”), one of the largest online game networks in the United States.
The Addicting Games network reaches over 10 million gamers monthly(1). They are leaders in developing and distributing browser games, and their platform focuses on the increasingly popular “browser multiplayer” .io website games. .io games are a popular new genre of real-time multiplayer games which are played in a browser, featuring addictive online multiplayer battles, with simple but hard to master gameplay. These games are becoming increasingly popular due to easy accessibility, mass multiplayer battles, and allowing players to play games within seconds from any computer with an internet connection.
The network includes popular games: Tactics Core (tacticscore.io), pumking.io, warfronts.io, shotz.io, skywars.io, seapop.io, skyarena.io and break out hit, Little Big Snake (littlebigsnake.io). It also includes Shockwave, the original “Netflix” of games, where players subscribe to play over 1500 games online. Addicting Games and Shockwave were previously purchased for $200 million in 2006 by Viacom. Most recently, Addicting Games was bought from Defy Media by the original founders and they have been expanding the network rapidly ever since.
Under the Agreement, Enthusiast will invest US$1.5 million by way of a 3-year secured convertible debenture (the “Debenture”) with interest accruing at 2% per annum which is convertible into equity at the value of Addicting Games’ next equity raise. Enthusiast invested in Addicting Games to capitalize on the rapidly growing .io games sector and a new niche of lifestyle gamer that the network currently doesn’t reach.
Menashe Kestenbaum, CEO of Enthusiast, commented,
“With the rise in mobile gaming and the advent of HTML5 technology, every browser can now be a game console and therefore attract significantly more visitors. We see the growth potential in console agnostic games and are excited to be partnering with Addicting Games to provide them with the best monetization strategy to execute on their continued growth and development of new browser-based games.”
Bill Karamouzis, CEO of Addicting Games, commented,
“It’s an exciting time to be in the gaming industry. The maturing of new technology has resulted in new alternative platforms for game distribution as well as ways to connect players in real time with each other to enhance the player experience. Addicting Games has always been the place to find great new fun games that can be played instantly and enjoyed by everyone. Partnering with Enthusiast is a natural fit with their deep commitment to gamers and the community. We hope to leverage their expertise as we commit to the next generation of casual gamers and game developers.”
Enthusiast has also entered into a Representation Agreement to exclusively monetize advertisements across the Addicting Games portfolio of websites. The exclusive representation will increase Enthusiast’s revenue and profits through Addicting Games’ eight large digital properties. The Company plans to utilize its strong sales force and programmatic engine to further optimize the monetization of the Addicting Games platform which will help fund the development and acquisition of new .io games.
About Addicting Games
Founded by Bill Karamouzis, the world famous Addicting Games pioneered the casual game genre in the early 2000s and continues to develop and distribute the very best games online. Reaching over 10 million gamers every month Addicting Games network players can enjoy a wide range of free browser-based games from brands such as Shockwave to the latest in streaming gaming IO Games Space. Visit us for the best free games released every week. Learn more about Addicting Games here: http://company.addictinggames.com/
About Enthusiast Gaming
Founded in 2014, Enthusiast Gaming Holdings Inc. (TSX.V:EGLX) (OTCQB:EGHIF) is the fastest-growing online community of video gamers. Through the Company’s unique acquisition strategy, it has a platform of over 80 owned and affiliated websites and currently reaches over 75 million monthly visitors with its unique and curated content and over 50 million YouTube visitors. Enthusiast also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.ca) with over 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com.
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations and future actions of the Company. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Enthusiast to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to Enthusiast, including information obtained from third-party industry analysts and other third-party sources, and are based on management’s current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of the Company should be considered highly speculative.
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