Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 252

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 252
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2024 a complaint was filed in Delaware
Chancery Court by Nathan Carter (“Plaintiff” ), a purported stockholder of B. Riley Principal 150 Merger Corp. (“BRPM”), 
against several former directors of BRPM, Faze Holdings, Inc.’s predecessor, and several other BRPM affiliated entities, challenging
the disclosures made in connection with the July 2022 merger between BRPM and Faze Holdings, The Company is required to indemnify certain
of the defendants due to its subsequent acquisition of FaZe Holdings, Inc. As previously reported, the Company, the Plaintiff and
the defendants entered into a settlement agreement in February 2025 (the “Settlement Agreement”) pursuant to which the parties
agreed to tentative terms resolving the matter, subject to approval from the Court of Chancery. On September 22, 2025, the Court of Chancery
granted final approval of the Settlement Agreement, pursuant to which the Company and BRPM agreed to pay to Plaintiff a total of $3.25
million in cash, $2.15 million of which the Company had the option to in the form of shares of its Common Stock in lieu of cash. As of
the date of this Report, the Company and BRPM have made the required settlement payment amounts in cash in full. As a result the litigation
has been resolved.

Alta Partners v. FaZe Holdings, Inc. On April 23, 2025, Alta Partners, LLC (“Alta”) filed a complaint
against FaZe Holdings, Inc. and GameSquare Holdings, Inc., in the United States District Court for the Southern District of New York,
alleging that in 2022, FaZe Holdings breached a warrant agreement between FaZe Holdings and Alta. On August 11, 2025, the Company entered
into a Settlement and Release Agreement with Alta Partners, LLC, pursuant to which the Company agreed to issue to Alta $150,000 of the
Company’s restricted Common Stock (“Settlement Shares”). In the event that the collective value of the Settlement Shares
drops below $150,000 on the six-month anniversary date following issuance of the Settlement Shares, or the next business day if the six-month
anniversary date falls on a weekend or holiday (the collective value to be computed based on the Nasdaq closing price of the Company’s
common stock on that six-month anniversary date, or the next business day if the six-month anniversary date falls on a weekend or