FRISCO, TX - GameSquare Holdings, Inc. (NASDAQ:GAME)(TSX.V:GAME) has announced the sale of its esports team Complexity Gaming to Global Esports Properties, LLC for a total consideration of US$10.36 million. The deal, which includes Complexity's assets and intellectual property, was signed today and awaits TSX Venture Exchange approval to finalize.
Complexity, under GameSquare's ownership, reported a significant increase in sales of more than 175% from 2021 to 2022, and a tenfold rise in social media followers. GameSquare CEO Justin Kenna remarked that while parting with Complexity is bittersweet, the transaction is a strategic move in line with GameSquare's asset optimization strategy and the forthcoming acquisition of FaZe Holdings.
The terms of the sale involve an upfront payment of US$0.75 million from Global Esports, with the remainder financed through a 3-year seller note at an annual interest of 3.0%, culminating in a balloon payment.
Additionally, GameSquare is entitled to half of the proceeds from any equity Global Esports raises over US$500,000, which will be credited against the outstanding balance.
Jason Lake, Complexity's founder and CEO, expressed gratitude for the opportunity and acknowledged the growth and financial stability achieved during the collaboration with GameSquare.
This transaction follows GameSquare's December 2023 divestiture of its Frankly radio assets and precedes its expected acquisition of FaZe Holdings. The acquisition of FaZe is projected to close in the coming weeks, with GameSquare aiming to replicate Complexity's success within FaZe's operations.
GameSquare Holdings, a digital media and technology company, operates a comprehensive platform connecting brands with gaming and youth culture audiences. The company's portfolio includes a range of businesses from digital media to creative production, and the pending merger with FaZe Holdings will expand its presence in the gaming organization space.
The financial terms of the Complexity sale are based on a press release statement from GameSquare Holdings, Inc. GameSquare has confirmed compliance with TSX Venture Exchange regulations regarding anti-dilution provisions in a related convertible debenture, with a floor price set at US$3.00.
The forward-looking statements included in the press release reflect the company's expectations and are subject to risks and uncertainties that could cause actual results to differ materially. GameSquare assumes no obligation to update these statements unless required by law.
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