Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 221

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 221
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, 2025. In July 2025, the Company paid the balance due under the promissory note.

Gigamoon
CD

On
November 13, 2024, the Company and Gigamoon entered into a senior secured convertible promissory note in the principal amount of $10
million (the “Gigamoon CD”). On December 15, 2024, the Company received cash of $10 million from Gigamoon for issuance of
the Gigamoon CD.

The
Gigamoon CD bears an interest rate of 7.5% per annum, which automatically shall be increased to 10.0% in the event of an event of default.
The Gigamoon CD has a maturity date of five years from the issuance, unless earlier accelerated upon the occurrence of an event of default
upon the election of the holder. Interest shall accrue as of the issuance date and shall be payable by the Company on (i) each anniversary
of such issuance date, and (ii) the earlier of (a) the maturity date and (b) the conversion or exchange of the Gigamoon CD. Interest
payments under the Gigamoon CD are payable in the Company’s common stock, equal to the quotient of (a) the aggregate amount of
any accrued and unpaid interest as of such payment date, and (b) the conversion price of $2.50 per common share.

At
the option of the holder, at any time on or after December 31, 2025, or upon an event of default or certain change of control events,
the Gigamoon CD can be converted into either (i) GameSquare common stock at a conversion price of $2.50 per common share or (ii) exchanged
for the 5,725,000 shares of Series A-1 Preferred Stock of Faze Media Inc. held by the Company.

Subsequently, on
April 2, 2025, GameSquare and Gigamoon entered into an exchange agreement, effective April 1, 2025, pursuant to which, the parties agreed
to accelerate the exercise date under the Gigamoon CD to April 1, 2025. As a result, on April 1, 2025, GameSquare transferred the 5,725,000
shares of Series A-1 Preferred Stock of Faze Media Inc. to Gigamoon.

31

Current
Market Conditions

GameSquare
is pursuing organic growth opportunities