Esports and media holding company Enthusiast Gaming has secured a $20 million (approximately £15.4 million) non-revolving term loan over four years, facilitated by lenders led by Beedie Investments Ltd as part of a credit agreement. This financial support is aimed at providing the company with growth capital and working capital to enhance its operational capabilities.
While Enthusiast Gaming has not specified the exact areas of investment for the loan proceeds, the company possesses a diverse portfolio that includes websites, YouTube channels, content creators, esports teams, and brand partnerships. This wide array of assets presents numerous opportunities for strategic investment and expansion.
The loan carries a fixed interest rate of 14.0% per annum, with payments calculated and made monthly in arrears. Enthusiast Gaming has stated that the loan will be guaranteed by certain subsidiaries based in Canada and the US, and it is secured by a second-ranking security interest, ensuring some level of protection for the lenders involved.
Beedie Capital, part of Beedie Investments Ltd, is recognized as one of the largest private companies in Western Canada and invests across various industries. This involvement marks Beedie’s first publicly announced foray into the esports sector.
Adrian Montgomery, the Interim CEO and Chairman of Enthusiast Gaming, expressed enthusiasm about the partnership, highlighting that the investment will strengthen their financial position and support their mission of uniting gaming enthusiasts globally. In its latest financial report, Enthusiast Gaming disclosed a net loss of CAD$1.3 million (about £733,000) for Q1 2024, alongside revenues totaling CAD$23.3 million (approximately £13.1 million).
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