Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 227

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 227
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 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.

(a)
King Street CD

The
King Street CD was paid in full on July 10, 2024, including $5.7 million principal and unpaid accrued interest. Key terms of the King
Street CD prior to the repayment include (a) a maturity date of December 29, 2025, (b) an interest rate of 12.75% per annum, and (c)
is convertible at the holder’s option into common shares of Company at a price of $3.04 per share (subject to standard anti-dilution
provisions). The Company recognized a gain on extinguishment of debt of $0.3 million on July 10, 2024 in connection with the paydown
and write-off of the King Street CD, and is included in loss on extinguishment of debt on the consolidated statements of operations and
comprehensive loss. The gain is presented net of the day one loss on issuance of the Yorkville CD (see Note 11(c)).

The
fair value of the King Street CD was estimated using the binomial lattice model with the below assumptions:

 Schedule of detailed information about fair value of convertible debentures

    July 8, 2024  
    December 31, 2023 
  
    Share price 
    $1.20  
    $1.78 
  
    Conversion price 
    $3.04