Aquilini GameCo C$10 million Loan to Enthusiast Gaming Closes

Enthusiast Gaming (TSXV:EGLX) announced that the C$10 million bridge loan from Aquilini GameCo has closed. The funds are planned to be used to accelerate Enthusiast Gaming’s growth strategy and harness the company to capture growth opportunities and acquisition targets.

As quoted in the press release:

Pursuant to the terms of the loan agreement with GameCo dated May 30, 2019 (the “Loan Agreement”), interest shall accrue on the loan at the rate of 8% per annum. All principal and interest under the Bridge Loan will be due and payable by Enthusiast to GameCo on the earlier of: (a) June 20, 2020, and (b) the closing of the plan of arrangement with J55 Capital Corp. and GameCo. Enthusiast will be entitled to prepay all or a part of the Bridge Loan at any time, from time to time, without bonus or penalty. Pursuant to the terms of the Loan Agreement, Enthusiast has paid GameCo a $300,000 administrative fee.

On May 31, 2019, Enthusiast announced that it had entered into an arrangement agreement (the “Arrangement”) with J55 Capital Corp. (“J55”) and GameCo. Pursuant to the Arrangement, J55 has agreed to acquire all of the outstanding common shares of Enthusiast Gaming in exchange for common shares of J55 on the basis of 4.22 J55 common shares for each one Enthusiast common share.

Click here to read the full press release.