Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 749

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 749
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 virtue of one of its directors. The Facility matured on June
30, 2023 (the “Maturity Date”). During the year ended December 31, 2023, the Company recognized $23 thousand in interest
expense and $80 thousand in legal fees in connection with the Facility. The Facility was paid off in April 2023, and has not been renewed.

    F-43

(b)
Convertible debenture with a director of the Company as counterparty

On
September 1, 2022, Engine extended convertible debentures that were due to expire in October and November 2022 with an aggregate principal
amount of $1.3 million. Key terms include (a) maturity date of August 31, 2025, (b) interest rate of 7% (interest to be paid in full
at maturity) and (c) conversion price of $4.40. The convertible debenture is beneficially held by a director of the Company (see Note
11).

18.
Commitments and contingencies

Allinsports
- In April 2020, Engine announced its renegotiation of the acquisition of Allinsports. The revised purchase agreement provided for
the acquisition of 100%
of Allinsports in exchange for the issuance of 241,666
common shares of the Engine and other considerations, including payments of $1,200,000
as a portion of the purchase consideration. In September 2020, Engine advised the shareholders of Allinsports that closing
conditions of the transaction, including the requirement to provide audited financial statements, had not been satisfied.

In
response, in November 2020, the shareholders of Allinsports commenced arbitration in Alberta, Canada seeking, among other things, to
compel Engine to complete the acquisition of Allinsports without the audited financial statements, and to issue 241,666 common shares
of Engine to those shareholders. As alternative relief, the shareholders of Allinsports sought up to $20.0 million in damages. A hearing
in this matter was held in May of 2021, and by a decision dated September 30, 2021, the Arbitrator determined that the closing of the
transaction had previously occurred and directed Engine to issue 241,666 common shares. In conjunction with completion of the Arrangement, the Company assumed this obligation to issue 241,666 common shares. The Company has not yet issued
the shares and is  pursuing relief against