Greywood InvestmentsLargest shareholder of a Canadian gaming and esports company enthusiastic gaming, has publicly targeted the organization’s leadership, urging its CEO Adrian Montgomery to step down.
Greywood, which owns 9.3 percent of Enthusiast Gaming, created a website called ‘Upgrade EGLX’ to publish text in which shareholders express their dissatisfaction with the current Enthusiast Gaming management. Specifically, Greywood highlights data such as the decline in share price from ‘$8.64 (~£5.36) on April 20, 2021, to $2.10 (~£1.30) per share on May 23, 2022.
credit: Enthusiast Gaming
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In statements published on the ‘Upgrade EGLX’ website, Greywood’s main focus has been Montgomery and the Company’s Board of Directors. On May 25, Greywood suggested a list of names to stand for election to be part of Enthusiast’s board at the company’s next annual meeting of shareholders.
Following the public statement, Enthusiast Gaming defended itself in a press release issued on May 24. The company accused Greywood of being “an investment vehicle that lacks transparency and seeks to take full control of the enthusiast gaming board without paying a controlling premium to shareholders.” The company also shared positive financial results such as Q1 2022 revenue of $47.2m (~£29.3m), an increase of 57 percent year-on-year.
Greywood’s announcement came a few months after Enthusiast reported losses of $41.6m (~£33m) in 2021.
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Enthusiast Gaming owns Luminosity Gaming, Call of Duty League franchise Seattle Surge and Overwatch League franchise Vancouver Titans. It also operates several gaming websites, including Upcomer, which recently hit headlines due to layoffs of writing staff.
Esports Insider says: On one hand we see a shareholder building a website to manage their own investments. On the other hand, we see a holding saying that its largest investor has a ‘lack of transparency’. It only shows that both sides can be both right and wrong at the same time. Either way, it is a rare public dispute by an esports organization and its investor that highlights some of the issues within the company.
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