• Ineffective leadership has prevented Company from thriving
• Greywood sees potential for a multiple increase in Enthusiast’s valuation
• www.UpgradeEGLX.com launched, where other concerned shareholders can sign up for updates on the campaign to “Upgrade Enthusiast”
  

NEW YORK, May 24, 2022 (GLOBE NEWSWIRE) -- A longstanding shareholder of Enthusiast Gaming Holdings Inc. (NASDAQ:EGLX; TSX:EGLX) (“Enthusiast” or the “Company”), Greywood Investments, LLC, which, together with its associates and affiliates (“Greywood”), currently owns over 9.3% of the Company’s shares and is its largest shareholder, today sent a letter to Enthusiast’s Board of Directors (the “Board”), notifying it of Greywood’s intention to upgrade the Company by changing the composition of the Board.

Greywood is optimistic about Enthusiast’s exceptional talent and enormous potential but believes this is not reflected in the Company’s current value. To unlock Enthusiast’s true value, Greywood intends to lead shareholders in upgrading Enthusiast’s Board and leadership. In contemplation of Enthusiast’s annual general meeting of shareholders to be held on June 29, 2022, Greywood plans to nominate several highly qualified individuals with a strong and diverse range of experiences, expertise, and credentials to enhance the Board of Directors significantly.

As an investor in the Company since 2018, Greywood has repeatedly expressed its concerns regarding the performance of Enthusiast’s Board and CEO and has offered solutions on multiple occasions over the last few months. Despite the constructive nature of Greywood’s analysis and proposed solutions, its efforts have been met with transparent delay tactics by what appears to have become an entrenched Board and CEO, who have been unwilling or unable to make the requisite changes.

The industry is moving fast and time is of the essence for Enthusiast. The urgency of this situation is highlighted by the Company’s share price, which has declined from a high of US$8.64 on April 20, 2021, to US$2.10 per share as of the close of business on May 23, 2022, almost a 76% loss. This compares quite unfavorably to a drop of approximately 16% for the Nasdaq Stock Market and less than 4% for the S&P 500 Index during the same period.

The full text of Greywood’s letter to Enthusiast’s Board is available at www.UpgradeEGLX.com. Shareholders who would like to stay up to date on Greywood’s campaign to “Upgrade Enthusiast” are invited to sign-up for updates via the website.

For more information:

www.UpgradeEGLX.com

Investors:

Carson Proxy Advisors
[email protected]
416-804-8025

Media:

About Greywood

Greywood is a multi-strategy investment firm exclusively managing proprietary capital. It invests in securities and assets across the capital structure with a particular focus on investments in emerging sector public and private companies. Greywood seeks to work constructively with portfolio companies and other stakeholders to actively support and assist management in developing and realizing the company’s full potential. Together with its associates and affiliates, Greywood owns over 9.3% of Enthusiast’s shares and is its largest shareholder.

Forward Looking Statements

Certain statements in this press release constitute forward-looking statements within the meaning of applicable Canadian securities laws. All statements contained in this press release that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. These statements are based on the current expectations of Greywood and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. Greywood cautions that its assumptions may not materialize and current economic conditions render such assumptions, although reasonable at the time made, subject to greater uncertainty. There can be no assurance that forward-looking statements included in this press release will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements included herein. Greywood does not assume any obligation to update any forward-looking statements contained in this press release, except as required by applicable law.

No Solicitation

This press release is for informational purposes only and is not a solicitation of proxies. Any proxies solicited in respect of the Meeting in favour of the removal of current directors and the appointment of Greywood’s nominees will be solicited pursuant to an information circular or as otherwise permitted by Canadian corporate and securities laws.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b8d2d2be-200b-4bc8-bc87-41382759588f