Esports and media holding company Enthusiast Gaming has received a $20m (~£15.4m) four year non-revolving term loan. The loan has been agreed in accordance with lenders led by Beedie Investments Ltd as a credit agreement.
Enthusiast Gaming said it will use the proceeds from the Term Loan for growth capital and working capital purposes.
Enthusiast Gaming has not yet announced specifically where it aims to invest the money from the loan, and it has many avenues to choose with its portfolio of websites, YouTube channels, content creators, esports teams, and brand content deals.
The Term Loan has a fixed rate interest of 14.0% per annum calculated and payable monthly in arrears. Enthusiast Gaming said in a release that the loan will be will be guaranteed by ‘certain’ Canadian and US subsidiaries, and secured by a second ranking security interest.
Beedie Capital is a Canadian investment platform, part of Beedie Investments Ltd, one of the largest private companies in Western Canada. It invests in a variety of companies across multiple industries, though this appears to be its first publicly announced involvement in esports.
Founded in 2014, Enthusiast Gaming is an esports and media holding company that owns several esports and gaming assets including Luminosity Gaming, Call of Duty League franchise Seattle Surge, Overwatch League team Vancouver Titans, blockchain game EV.IO and multiple gaming websites.
Adrian Montgomery, Interim CEO and Chairman of the board of directors of Enthusiast Gaming, commented: “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.
“We are delighted to partner with Beedie Capital, whose reputation and successful history of supporting high-growth companies is unmatched.”
In its latest financial result, Enthusiast Gaming reported a net loss of CAD$1.3m (~£733,000) for Q1 2024, with revenues of CAD$23.3m (~£13.1m).
