Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 535

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 535
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, 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.

The
Parties’ obligation to complete the Transaction contemplated by the MIPA is subject to certain conditions, including approval by
TSXV, which is still outstanding. Accordingly, the Transaction described herein is subject to risk of completion.

The
MIPA contains customary representations, warranties, indemnification obligations and agreements of the Parties.

Other
Highlights

On
August 26, 2024, 103,594 common shares were issued in connection with conversion of $100 thousand in principal under the Yorkville CD
with a fair value of $108 thousand. On October 17, 2024, 812,347 common shares were issued in connection with conversion of $500 thousand
in principal under the Yorkville CD with a fair value of $538 thousand.

On
September 4, 2024, 80,000 common shares were issued in settlement of outstanding amounts payable of $0