ESE Entertainment Announces Sale of Minority Interest in GameAddik

VANCOUVER, BC - July 15, 2024 - ESE Entertainment Inc., a gaming and esports company, has announced the sale of its remaining 30% interest in GameAddik to BPV Games Limited Partnership, an affiliate of BlackPines Capital Partners Ltd. The transaction, valued at $4,030,925, is expected to be finalized following customary closing conditions and regulatory approvals.

ESE had previously sold 70% of its interest in GameAddik on August 14, 2023, with a holdback of 15% payable in two equal tranches. The first tranche was received on February 14, 2024, and the second tranche, amounting to $548,159, is due on August 14, 2024.

The proceeds from this sale will enhance ESE's cash position, allowing the company to settle liabilities and invest in core business operations without diluting shareholder value. The transaction is categorized as an arm's length and "Reviewable Disposition" per Exchange Policy 5.3, requiring disinterested shareholder approval.

ESE's management and Board of Directors, holding 24% of the company's shares, have unanimously approved the transaction. If unable to secure necessary shareholder consent, ESE will incur a break fee of $100,000.