East Side Games Group Inc. (TSX: EAGR) (OTC: EAGRF) has announced additional details about its new credit facilities with National Bank of Canada (NBC) and Export Development Canada (EDC), following an earlier release on October 9, 2026. The new facilities replace the company's previous arrangement with Royal Bank of Canada (RBC) and aim to restore its ability to invest in user acquisition.
The new facilities include a C$3 million revolving line of credit with NBC, bearing interest at prime plus 1%, and up to C$3.5 million in term loans backed by tax credits at prime plus 1.25%. Additionally, there is a US$4 million term loan from EDC. The company has already drawn approximately C$3.2 million, with C$6.4 million remaining available across all facilities. These facilities are non-dilutive, meaning no shares or equity securities were issued to the lenders.
User acquisition (UA) is a critical factor for the company's revenue growth. The new facilities will allow East Side Games Group to increase UA spending to normalized levels, which the company expects to reflect in its financial results starting in the fourth quarter of 2026. The third-quarter results, to be reported on or about November 15, 2026, will still show the impact of capital constraints.
With the RBC facility fully repaid, the company's remaining debt consists of C$5.6 million in loans from insiders. Jason Bailey, Chief Executive Officer of ESGG, stated, "For most of this year, access to capital rather than opportunity set the limit on what we could invest in our games, and our results showed it. With National Bank and EDC as partners and our RBC facility repaid in full, we can return user acquisition to normalized levels, and we expect that investment to show in our results beginning in the fourth quarter."