Enthusiast Gaming has not disclosed specific plans for investing the loan funds, but has various options available through its portfolio of websites, YouTube channels, content creators, esports teams, and brand partnerships.

The term loan carries a fixed interest rate of 14.0% per year, calculated and payable monthly in arrears. According to Enthusiast Gaming’s announcement, the loan will be backed by “certain” Canadian and US subsidiaries and secured with a second-ranking security interest.

Beedie Capital, part of Beedie Investments Ltd, is a Canadian investment platform and one of the largest private companies in Western Canada. It invests in a range of industries, and 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 gaming assets, including Luminosity Gaming, the Seattle Surge in the Call of Duty League, the Vancouver Titans in the Overwatch League, the blockchain game EV.IO, and various gaming websites.

Adrian Montgomery, Interim CEO and Chairman of the board of Enthusiast Gaming, stated: “This strategic investment greatly enhances our financial position, providing $20 million in additional liquidity that will help us advance our mission of connecting gaming enthusiasts worldwide and delivering outstanding value to our partners and communities.

“We are thrilled to partner with Beedie Capital, whose exceptional reputation and history of supporting high-growth companies is unparalleled.”

In its most recent financial report, Enthusiast Gaming reported a net loss of CAD $1.3 million (approximately £733,000) for Q1 2024, with revenues of CAD $23.3 million (around £13.1 million).