Enthusiast Gaming Holdings, an esports event and online community startup, has gone public through a reverse merger transaction on the TSX Venture Exchange. That helps the company get acquired by a shell company, in this case Tova Ventures, and then rename that entity as Enthusiast Gaming.
Toronto-based Enthusiast Gaming is trading on the the stock ticker symbol “EGLX.”
“As one of the few gaming companies trading publicly, we’re incredibly proud to announce this milestone in Enthusiast’s history,” said Enthusiast Gaming CEO Menashe Kestenbaum in a statement. “We look forward to a beneficial relationship with our shareholders as we carry out our vision of growing our platform both online and through our Enthusiast gaming Live Expo, EGLX.”
Enthusiast Gaming also said that, subject to regulatory approval, it has retained INFOR Financial to provide market making services to Enthusiast Gaming in compliance with the policies and guidelines of the exchange and other applicable legislation.
INFOR Financial will trade common shares of the company on the exchange to maintain a reasonable market and improve the liquidity of Enthusiast’ common shares.
INFOR Financial will receive $10,000 per month and the term of the engagement shall be for no less than four months and shall continue indefinitely until otherwise terminated by either party upon 30 days written notice.
The company will ring the opening bell on Thursday, October 26. Enthusiast Gaming was founded in 2014 to serve fans and the online gaming community. It has a platform of over 70 owned and affiliated websites and currently reaches over 75 million monthly visitors with its unique and curated content.
Enthusiast also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX. The next expo will take place October 26-28, 2018 at the Metro Toronto Convention Center. Last year’s event drew 25,000 people and generated revenues of $500,000.
In 2017, the company reported revenues of $3.5 million. It previously raised $8.5 million from investors including Haywood, Canaccord, Interward, and PowerOne.