Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 524

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 524
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 Additionally, all shares previously owned by Yorkville,
were purchased by outside investors in block transactions that occurred on January 21, 2025.

Gigamoon
CD

On
November 13, 2024, the Company and Gigamoon entered into a senior secured convertible promissory note in the principal amount of $10
million (the “Gigamoon CD”). On December 15, 2024, the Company received cash of $10 million from Gigamoon for issuance of
the Gigamoon CD.

The
Gigamoon CD bears an interest rate of 7.5% per annum, which automatically shall be increased to 10.0% in the event of an event of default.
The Gigamoon CD has a maturity date of five years from the issuance, unless earlier accelerated upon the occurrence 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.

Standby
Equity Purchase Agreement

On
July 8, 2024, the Company entered into the Standby Equity Purchase Agreement (“SEPA”) with YA II PN, LTD, a Cayman Islands
exempt limited partnership (“Yorkville”), pursuant to which the Company has the right to sell to Yorkville up to $20.0 million
of its shares of common stock, par value $0.0001 per share (“Common Stock”), subject to certain limitations and conditions
set forth in the SEPA, from time to time during the term of