Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 281

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 281
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 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, and undertakings under
or in respect of the Note.