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Gaming enthusiast's largest shareholder calls for CEO ouster, board overhaul

The largest shareholder in Enthusiast Gaming, the holding company for Luminosity, the Vancouver Titans, and the Seattle Surge, has written a letter calling for the removal of the company's CEO and most of its board of directors.

A letter to Enthusiast and its seven-member board of directors has been posted to Greywood Investments and its associates and affiliates, which own 9.3 percent of Enthusiast.

on a website titled "Upgrade EGLX," referencing the company's ticker symbol on the Toronto Stock Exchange and Nasdaq. According to Greywood, Enthusiast is being squandered under the current leadership.

Specifically, Greywood called for the ousting of CEO Adrian Montgomery, whom Greywood described as a “detriment to the company’s management, operations, communications, and growth strategies.

” Montgomery has also been accused of developing a “culture of divisiveness” within the workplace, not consulting with employees and shareholders about acquisitions and partnerships, and being overcompensated.

The shareholders also aimed at the company’s board of directors, including NFL player Richard Sherman and Vancouver Canucks chairman Francesco Aquilini.

As one of its chief complaints, the board is accused of lacking a financial interest in Enthusiast, where members own 5.7 percent of the company.

In addition to admonishing the board for Montgomery's alleged divisive workplace culture, Greywood criticized the board for a lack of transparency and "alleged impropriety."

"We believe that the Board failed to adequately oversee certain conflict situations or reported incidents," Greywood said.

We believe that this raises serious questions regarding the Board's judgment, which has unwittingly created an unhealthy and harmful culture in the organization.

We believe that this has made it difficult for the Company to recruit and retain qualified leadership candidates.

As a result of this and other complaints, Greywood will be focusing its campaign to "upgrade" Enthusiast by replacing most of its board of directors with those who have more knowledge of the industry or a financial stake in it.

According to the shareholders, Montgomery should be replaced immediately and the company should operate more in “gaming/technology/capital centers” in the U.S.  

In March, Enthusiast laid off most of its editorial staff at Upcomer amid a pivot to video.

This move came just more than a year after Enthusiast launched the esports publication. Enthusiast reported losses of $41.6 million in 2021, nearly twice as much as it did in 2020.

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