Enthusiast Gaming faces CEO, board challenge from investment firm Greywood
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In a letter resolved to Enthusiast’s board of administrators, which involves NFL cornerback Richard Sherman, Greywood’s reps expressed disappointment in the company’s declining fortunes.
“The discouraging part for shareholders is that the Organization does in fact have very proficient staff establishing and/or employing noteworthy techniques,” reads Greywood’s letter. “We believe that Fanatic need to have a market value of US$1-2 billion, not the anemic US$250-300 million industry worth less than the present leadership.”
Enthusiast Gaming did not right away answer to a request for remark.
In their letter, Greywood identifies itself as the biggest shareholder in Fanatic, owning obtained approximately 9.3 percent of the company’s excellent shares at the expense of about $30 million. Greywood’s web page describes the firm as a single that “seeks to perform constructively with portfolio corporations and other stakeholders to actively support and help management in producing and realizing the company’s total prospective.”
Past slide, in accordance to the letter, the company achieved out to Enthusiast to convey “grave concerns” about the company’s direction in response, the firm claimed it been given “a terse, generic, disingenuous and dismissive email.”
Across the to start with five months of 2022, Greywood obtained ever more massive stakes in Fanatic. In January, the firm manufactured two filings with the Securities and Exchange Fee marking that it had acquired 7 percent of full shares, then bumping that stake up to 8 p.c just weeks later on. In individuals filings, Greywood describes alone as an financial investment manager for a firm named Vantage Investing, which retains the wide vast majority of Greywood’s 9.3 % stake in Enthusiast.
In the letter, the team outlines an “Upgrade Enthusiast” marketing campaign, the principal pillar of which is to substitute Adrian Montgomery, the company’s existing CEO. Greywood also notes its intention to nominate a collection of “highly capable and interested” candidates at a shareholder assembly in June.
