Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 5

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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 Certificate of Designation was filed with the Secretary of State of the State of Delaware on July
24, 2025, and became effective upon filing.

The
Series A-1 Preferred Stock ranks senior to all junior securities, including Common Stock, and carries a $1.50 per share liquidation preference
on an as-converted basis, with such preference subject to the Shareholder Vote Condition. After satisfying this preference, holders participate
pro rata with junior securities. The Series A-1 Preferred Stock has no voting rights, and upon satisfaction of the Shareholder Vote Condition,
each share of Series A-1 Preferred Stock will automatically convert into 1,000 shares of the Common Stock.

Subscription

On
July 24, 2025, the Company entered into a Subscription Agreement with Robert Leshner (“Subscriber”), pursuant to which
Subscriber purchased from the Company 3,433.33 shares of Series A-1 Convertible Preferred Stock of the Company, par value $0.0001 per
share (the “Series A-1 Preferred Stock”), in consideration for that certain Crypto Punk 5577 non-fungible token, which
has been deemed to have a fair market value of $5,149,995.00 (the “Issuance”). Each share of Series A-1 Preferred
Stock was issued at a price of $1,500 per share and automatically converts, at a fixed ratio to 1,000 shares of common stock of the Company,
par value $0.0001 per share, resulting in an effective conversion price of $1.50 per share.

Repurchase
Program

On
August 1, 2025, the Board of Directors of the Company authorized a share repurchase program pursuant to which the Company may purchase
shares of common stock, par value $0.0001 per share up to $5,000,000 worth of Common Stock. Under the repurchase program, GameSquare
may purchase shares of its Common Stock on a discretionary basis from time to time through open market repurchases, in privately negotiated
transactions, or other means, including through Rule 10b5-1 trading plans. The timing and actual number of shares repurchased will be
determined by management depending on a variety of factors, including, among other factors, stock price, trading volume, market conditions
and other general business considerations. The repurchase program has no expiration date and may be modified, suspended, or terminated
at any time. Repurchases under this