Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 124

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 124
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aze Media”). On May 15, 2024, the Company entered into a business venture
with Gigamoon Media, LLC (“Gigamoon”). As part of this venture, the Company contributed certain media assets of Faze Clan,
Inc. to Faze Media and Gigamoon invested $11.0 million in Faze Media in exchange for 11,000,000 shares of Series A-2 Preferred Stock
of Faze Media, 49% of Faze Media’s voting equity interests, pursuant to a Securities Purchase Agreement (the “SPA”).
The Company was issued 11.45 million shares of Series A-1 Preferred Stock of Faze Media, 51% of Faze Media’s voting equity interests.

On
June 17, 2024, the Company entered into an agreement to sell 5,725,000 of its 11,450,000 shares of Series A-1 Preferred Stock of Faze
Media to M40A3 LLC (“M4”) in exchange for $9.5 million (the “June SPA”). The first 2,862,500 share tranche
was issued on June 17, 2024 for consideration of $4.75 million and the remaining 2,862,500 was issued on August 15, 2024 for consideration
of $4.75 million.

Contemporaneous
with the execution of the June SPA, the Company and M4 entered into a Limited Proxy and Power of Attorney with respect to all of
the shares of Series A-1 Preferred Stock of Faze Media held by M4 (the “Faze Media Voting Proxy”).

Faze
Media is not a variable interest entity. Due to the Faze Media Voting Proxy, the Company maintains a controlling financial interest in
Faze Media and Faze Media is a consolidated subsidiary of the Company as of May 15, 2024 (Faze Media formation date). The Preferred Stock
of Faze Media held by M4 and Gigamoon represent a non-controlling interest of the Company.

As
a result of the above transactions, the Company recorded a non-controlling interest in Faze Media, Inc. of $20.5 million, the sum of
cash consideration received, within the consolidated statements of stockholders’ equity.

(e)
Disposal of Faze Media

Subsequently, on
April 1, 2025, the Company, through its wholly owned subsidiary Faze Media Holdings, LLC, entered into an