08:02 AM EDT, 07/15/2024 (MT Newswires) -- Enthusiast Gaming Holdings ( EGLXF ) said on Monday that it secured a four-year, $20 million non-revolving term loan from lenders led by Beedie Investments Ltd.

The company said it will use the funds for growth capital and working capital purposes.

"This strategic investment significantly bolsters our financial position, providing $20 million of additional liquidity, which will enable us to accelerate our vision of uniting gaming enthusiasts globally and delivering exceptional value to our partners and communities," said Adrian Montgomery, interim CEO and board chairman of Enthusiast Gaming ( EGLXF ).

The loan has a fixed interest rate of 14% per annum calculated and payable monthly in arrears.

While there is at least $2.5 million under the term loan outstanding to Beedie Capital or if Beedie Capital owns, directly or indirectly, 10% or more of Enthusiast Gaming ( EGLXF ) on a partially-diluted basis, Beedie Capital will be entitled to have an observer attend each meeting of Enthusiast Gaming's ( EGLXF ) board.

Beedie Capital can nominate one board member of Enthusiast Gaming ( EGLXF ) if its stake in the company reaches at least 10%.

"With the operations of the company now effectively self-sustaining, we expect this extra capital to unlock significant growth opportunities," Montgomery said.