Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 153

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 153
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 date the Company is notified (orally or in writing) by the SEC that such registration statement will not be “reviewed”
or will not be subject to further review.

15

The
Company had previously entered into a backstop agreement (the “Backstop Agreement”) with Goff Jones Strategic Partners, LLC
(formerly known as Goff & Jones Lending Co, LLC) (“Goff Jones”), to purchase common stock to ensure the PIPE was fully
subscribed. The Backstop Agreement was originally announced on October 20, 2023. A total of $6.0 million of securities were issued to
Goff Jones in connection with the Backstop Agreement.

Complexity
Membership Interest Purchase Agreement

On
March 1, 2024, Global Esports Properties, LLC, a Delaware limited liability company (“Buyer”), GameSquare Esports (USA),
Inc., a Nevada corporation (“Seller”) and sole member of NextGen Tech, LLC, a Texas limited liability company doing business
as Complexity Gaming, and GameSquare Holdings, Inc., a corporation formed under the laws of the province of Ontario (“Beneficial
Owner”) (together, the “Parties”) entered into a Membership Interest Purchase Agreement (the “MIPA”) for
the purchase of all issued and outstanding interests (the “Interests”) of NextGen Tech, LLC, a Texas limited liability company
doing business as Complexity Gaming (the “Transaction”).

The
purchase price for the acquired Interests was $10.4 million, subject to final determination and adjustment pursuant to the purchase price
adjustment mechanism set forth in the MIPA (the “Purchase Price”). $0.8 million of the Purchase Price was paid in cash at
closing and the remainder was paid at closing by delivery of a secured subordinated promissory note (the “Note”) in favor
of the Seller in the principal amount of $9.6 million (the “Principal Amount”). Under the Note, the Company is required pay
the Principal Amount of the Note, together with all accrued interest (accrued at a rate equal to 3% per annum), fees, premium, charges,
costs, and expenses no later than thirty-six (36) months from the date of the Note.

The
Note is secured pursuant to a Security Agreement (the “Security Agreement”), which provides for a security interest in Buyer’s
collateral (as defined in the Security Agreement) to secure any and all indebtedness, obligations, liabilities,