Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 46

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 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. The convertible
debenture matured in the third quarter of 2025 (see Note 10).

(b)
Promissory note with significant investor

On
March 25, 2025, the “Company entered into a secured promissory note with Blue & Silver Ventures, Ltd. The principal amount
of $2 million under the promissory note is payable on demand and no later than July 1, 2025. The promissory note bears interest at a
rate of ten percent (10%) per annum, with a default interest rate of fifteen percent (15%) per annum, and is payable on demand and no
later than July 1, 2025 with the principal amount. The Company, at its option, may prepay the promissory note, in whole or in part, without
a prepayment penalty of any kind.

In
connection with the promissory note, the Company entered into a security agreement, by and between the Company and Blue & Silver
Ventures, Ltd. to provide a security interest in the assets of the Company to Blue & Silver Ventures, Ltd. in order to secure the
obligations underlying the promissory note.

During
the third quarter of 2025, the Company paid $2.1 million, principal and accrued interest, to pay down the Blue & Silver promissory
note in full.

    23

16.
Commitments and contingencies

Allinsports - A September 2021, decision issued
by an arbitrator located in Alberta, Canada, directed the Company to issue 241,666 shares to Allinsports in connection with a dispute
whether certain closing conditions in the acquisition agreement for Allinsports had been met. The Company recognized a liability for
the arbitration ruling of $1.5 million, which represented the fair value of the common shares directed to be delivered as of April 11,
2023. The liability is recorded as arbitration reserve on the Company’s consolidated balance sheets. This liability will be adjusted
to fair value at the end of each reporting period.

SPAC
Complaint – As previously disclosed, in June 2024 a complaint was filed