Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 169

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 169
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 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, as well as M&A growth opportunities. From August 2020 to September 2025, the Company
has completed six acquisitions and divested three non-core assets. GameSquare’s organic growth strategy focuses on growing
audience and reach within its operating segments. GameSquare’s digital agencies, owned and operated IP, and
 SaaS segments serve the gaming and esports market, and more broadly sports and entertainment through content creation, audience
development and growing brand relationships. The digital agency industry is highly fragmented, and these businesses are generally
characterized by high revenue growth with healthy earnings before income, taxes, depreciation and amortization margins, which
management believes positions the Company well for sustainable growth through organic efforts and presents significant opportunities
to grow through accretive acquisitions.

The
Company has invested in its sales organization and continues to see significant growth in the number, and the size, of requests for proposals
within its agency businesses. The Company’s financial profile compares very favorably against its esports peers, as well as other
companies seeking to engage with youth audiences.

The
Company believes enterprise growth may come as a result of synergistic approaches to combining the strengths of its  SaaS companies
that it can