Enthusiast Gaming Holdings Inc. (EGLX) Earnings Call Transcript & Summary

Hello, and welcome to the Annual General and Special Meeting of Shareholders of Enthusiast Gaming Holdings, Inc. Please note that today's meeting is being recorded. If you participate in today's meeting and disclose personal information, you will be deemed to consent to the recording, transfer and use of same. If you disclose personal information of another person in today's meeting, you will be deemed to represent and warrant to Odyssey and the company that you first obtained all required consents for the disclosure recording transfer and use of such personal information for all appropriate persons before your disclosure. During the meeting, you can submit questions or comments at any time by clicking on the question-and-answer tab. Questions that directly relate to a particular motion will be answered at the appropriate time of the meeting. It is now my pleasure to turn today's meeting over to Alex MacDonald, Chief Executive Officer of the company. The floor is yours.

Thank you, and good afternoon, all. My name is Alex MacDonald, and I am the Chief Executive Officer of Enthusiast Gaming Holdings, Inc. On behalf of the company, I welcome you to this Annual General and Special Meeting of Shareholders. We are hosting this year's meeting virtually so that it is accessible to our shareholders and proxy holders, regardless of physical location and allows them to participate, submit questions and vote. . This online meeting is accessible to registered shareholders, duly appointed proxy holders and guests. However, only registered shareholders and proxy holders are entitled to participate in the meeting, vote and ask questions. I encourage registered shareholders and proxy holders to submit your questions as early as possible so that we may address them at the right moment during the meeting. Questions should relate to the motions being considered as part of the formal business of the meeting. If you have a question, please use the messaging tap feature in the webcast. We will try to address questions that directly relate to a particular motion at the appropriate time of the meeting. Registered shareholders and duly appointed proxy holders may vote on the online platform throughout the meeting. To do so, click on the circle button beside the answer of your choice for each item being voted on when instructed. You will see confirmation that your vote has been captured by the answer being highlighted. If you have appointed a proxy holder and do not wish to change your voting instructions, then you do not need to do anything. If you do wish to change your vote, then voting online will have the effect of revoking your previously submitted proxy. Voting on all resolutions will be open at the same time. This will allow you to choose to vote on each resolution immediately or wait until the conclusion of discussion on all resolutions prior to casting your vote. Once discussion on all items of business has been concluded, I will give you time to enter your votes and then declare voting closed on all resolutions. After my introductory remarks, we will proceed through the regular and special items of business namely the receipt of financial statements, setting the number of directors of the company, the election of directors, appointment of auditors, approval of unallocated options under the stock option plan and approval of unallocated share units under the share unit plan. Before we proceed with the formal business of today's meeting, I would like to introduce the members of management of Enthusiast who have joined us online today being J.B. Elliott, President and Chief Operating Officer; and Nathan Teal, Interim Chief Financial Officer. In accordance with the articles of the company, I will preside as Chair of this meeting. I appoint [ Mohamed Adel Hadi], associate General Counsel of the company, to act as Secretary for the meeting. I appoint Odyssey Trust Company to act as scrutineer for the meeting. The Secretary has been advised that the notice calling this meeting, the related management information circular and former proxy were mailed and made available to shareholders using the notice and access method on May 29, 2026, to, amongst others, all shareholders of record as of May 19, 2026. The affidavit of mailing will be available for inspection by any shareholder. I would ask that the secretary file a copy of such affidavit with the minutes of today's meeting. Quorum shareholders for this meeting consists of one or more persons present in person or by proxy. I have been advised by the scrutineer that there are 54 shareholders present today, either in person or by proxy, representing 38,075,279 shares which is approximately 23.9% of the issued and outstanding shares of enthusiasts as at the record date. Accordingly, we have a quorum present. I would ask that the secretary file a copy of the scrutineer's report with the minutes of today's meeting. I would also note that under applicable corporate laws and the articles of the company, the company has permitted to hold this meeting by the electronic means that we are using. With that said, I declare that this meeting has been regularly called and properly constituted for the transaction of business. To facilitate proceedings, I as Chair of the meeting and a shareholder of the company will move all motions. This is not intended in any way to curtail discussion. Each item of the business to be considered today requires that a majority of the votes cast to be voted in favor in order for the resolution to pass. The first item of business is the presentation of the audited financial statements of the company for the year ended December 31, 2025, together with the report of the auditors thereon. These financial statements were previously filed on the company's website and SEDAR, and I now place them before the shareholders. Are there any questions on the financial statements or the auditor's report?

No, we have not received any questions on this item.

Thank you. I declare that the audited financial statements of the company for the year ended December 31, 2025, together with the report of the auditors thereon have been presented and received. The voting is now open for all resolutions. We invite shareholders and proxy holders to submit their votes if they have not already done so. As a reminder, if you've already voted or sent in a proxy, there is no need to do anything unless you wish to change one or more of your votes. The first item of business to be voted upon is the election of directors. As a preliminary matter, it is proposed that the number of directors to be elected should be fixed at 5. Accordingly, I hereby move that the number of directors to be elected be fixed at 5. The motion having been made, we will now address any questions or comments from shareholders or proxy holders that are directly related to fixing the number of directors. Have any questions come in?

We have not received any questions on this item.

Thank you. The voting is open, and we invite shareholders and proxy holders to submit their votes if they have not already done so. We will now move to the election of directors. Information about each nominee is included in the management information circular. I confirm that all nominees are eligible for election. The nominees are John Albright, Scott Michael O'Neil, Thomas Hearne, John Zorbas and myself, Alex Macdonald. Accordingly, I now move that each of the 5 persons nominated be elected as a Director of the company to hold office until the close of the next Annual Meeting of Shareholders of the company or until their successor is duly elected or appointed. The motion having to be made, we will now address any questions or comments from shareholders or proxy holders that are directly related to the election of directors? Have any questions come in?

No, we have not received any questions on this item.

Thank you. The voting is open, and we invite shareholders and proxy holders to submit their votes if they have not already done so. The next item of business is the appointment of the auditor. Accordingly, I hereby move that RSM Canada LLP be appointed the auditor of the company to hold office until the next Annual Meeting of Shareholders of the company and that the directors be authorized to fix their remuneration. The motion having been made, we will now address any questions or comments from shareholders or proxy holders that are directly related to the appointment of the auditor. Have any questions come in.

No, we have not received any questions on this item.

Thank you. The voting is open, and we invite shareholders and proxy holders to submit their votes if they have not already done so. The next item of business is the approval of the stock option plan resolution. The stock option plan resolution is to approve the current unallocated options under the company's current stock option plan as required by TSX rules. Approval of this resolution will allow the company to continue granting options under the current stock option plan until June 30, 2029. Accordingly, I hereby move that the stock option plan resolution be approved. The motion having been made, we will now address any questions or comments from shareholders or proxy holders that are directly related to the stock option plan resolution. Have any questions come in?

No, we have not received any questions on this item.

Thank you. The voting is open, and we invite shareholders and proxy holders to submit their votes if they have not already done so. The next item of business is the approval of the share unit plan resolution. The shared unit plan resolution is to approve the unallocated share units under the company's share unit plan as required by TSX rules. Approval of this resolution will allow the company to continue granting share units under the share unit plan until June 30, 2029. Accordingly, I hereby move that the share unit plan resolution be approved. The motion having been made, we will now address any questions or comments from shareholders or proxy holders that are directly related to the share unit plan resolution. Have any questions come in?

No, we have not received any questions on this item.

Thank you. The voting is open, and we invite shareholders and proxy holders to submit their votes if they have not already done so. I now instruct odyssey to close polls on all resolutions. And as we have now dealt with all business items on the agenda, I declare voting on all matters closed. I understand that the scrutineer has a preliminary tabulation of votes cast in respect of each of the items of business before the meeting. The preliminary results with respect to fixing the number of directors at 5 are 57.9% voted in favor of fixing the number of directors for the ensuing year at 5. As a result, I declare that the number of directors for the ensuing year is set at 5. The preliminary results with respect to the election of directors are a majority of the votes cast were voted in favor of all 5 nominees with each nominee receiving in excess of at least 69.8% in favor. As a result, I declare that the 5 director nominees have been duly elected. The preliminary results with respect to the appointment of the auditor is 60.8% voted in favor of the appointment of RSM Canada LLP. As a result, I declare that RSM Canada LLP has been duly appointed as the auditor of the company and that the directors are authorized to fix their remuneration. The preliminary result with respect to the stock option plan resolution is 59% voted in favor. As a result, I declare that the stock option plan resolution has been approved. The preliminary result with respect to the share unit plan resolution is 60.4% voted in favor. As a result, I declare that the share unit plan resolution has been approved. The final results of today's vote will be posted later today on SEDAR+. This concludes the business of this meeting of shareholders and I declare the meeting terminated. Thank you very much.

This concludes the meeting. You may now disconnect.