Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 144

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 144
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 of advances pursuant to the SEPA.

In
connection with the execution of the SEPA, the Company paid a diligence fee in cash to Yorkville in the amount of $25,000. Additionally,
the Company agreed to pay a commitment fee of $200,000 to Yorkville, payable as follows: (i) $100,000 payable within three days of the
date of the SEPA, in the form of the issuance of 80,000 shares of common stock, and (ii) $100,000 payable on the three-month anniversary
of the date of the SEPA, payable in either cash or in the form of an advance.

Additionally,
Yorkville agreed to advance to the Company, in exchange for a convertible promissory note (the “Yorkville CD”), an aggregate
principal amount of up to $6.5 million, which was funded on July 8, 2024. The purchase price for the Yorkville CD was 93.0% of the principal
amount or $6.045 million. Interest shall accrue on the outstanding balance of the Yorkville CD at an annual rate equal to 0%, subject
to an increase to 18% upon an event of default. The maturity date of the Yorkville CD will be 12 months after the issuance date. Yorkville
may convert the convertible debenture into shares of common stock at any time at a conversion price equal to the lower of (i) $1.375
(the “Fixed Price”) or (ii) a price per share equal to 93% of the lowest daily VWAP during the seven consecutive trading
days immediately prior to the conversion date (the “Variable Price”), but which Variable Price shall not be lower than the
floor price of $0.25 per share. Additionally, the Company, at its option, shall have the right, but not the obligation, to redeem early
a portion or all amounts outstanding under the Yorkville CD at a redemption amount equal to the outstanding principal balance being repaid
or redeemed, plus a 7% prepayment premium.

At
any time during the term that there is a balance outstanding under the Yorkville CD, Yorkville may convert an amount that shall not exceed
during any calendar month period, the greater of (i) an amount equal to 15% of the product of (A) the average of the daily traded amount
on each trading day during such period and (B) the VWAP for such trading day, and (ii