Enthusiast Gaming Announces Intention to Voluntarily Delist from Nasdaq

LOS ANGELES, Oct. 23, 2023 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (Nasdaq: EGLX; TSX: EGLX) (the “Company”), the leading gaming media and entertainment company in North America, today announced that it has notified the Nasdaq Stock Market LLC (“Nasdaq”) of its intention to voluntarily delist its common shares (“Shares”) from Nasdaq. Shares will continue to trade on the Toronto Stock Exchange (“TSX”).

As previously announced in its press release dated May 4, 2023, the Listing Qualifications department of Nasdaq approved the Company’s request for a 180-day extension (the “Extension”) to regain compliance with Nasdaq’s minimum bid price requirement under Nasdaq Listing Rule 5450(a)(1) (the “Bid Price Rule”).

Although the Company has until October 30, 2023, to regain compliance with the Bid Price Rule, after careful consideration, the Company has evaluated the benefits and costs of continuing its listing on Nasdaq and has concluded that it is appropriate to voluntarily delist from Nasdaq. The Company estimates that it incurs over US$2 million of annual costs in connection with maintaining a dual listing, which expenses are expected to increase significantly in future years due to increasing compliance and other regulatory requirements. With the Shares concurrently trading on the TSX, the Company believes the relatively high insurance, listing, reporting, legal and compliance costs that are associated with a continued U.S. stock exchange listing, as well as the administrative burdens and requirements associated with maintaining a dual listing, are not justified at this time. The Company has also concluded that a reverse split of the Company’s Shares in order to come into compliance with the Bid Price Rule is not in the best interest of shareholders.

The Company intends to file a Form 25 with the U.S. Securities and Exchange Commission on or about October 30, 2023, which Form would become effective 10 days following filing thereof, resulting in the delisting of the Shares from Nasdaq on or about November 9, 2023. The Company’s financial statements, press releases and other information will continue to be available on SEDAR+ at www.sedarplus.com, on EDGAR at www.sec.gov and on its website at www.enthusiastgaming.com.

About Enthusiast Gaming

Enthusiast Gaming is the leading gaming media and entertainment company in North America, building the largest platform for video game enthusiasts and esports fans to connect and compete worldwide. Combining the elements of its five core pillars: creators, content, communities, games, and experiences, Enthusiast Gaming provides a unique opportunity for marketers to create integrated brand solutions to connect with coveted Gen Z and Millennial audiences. Through its proprietary mix of digital media, content and gaming assets, Enthusiast Gaming continues to grow its network of communities, reflecting the scale and diversity of gaming enthusiasts today.