Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 187

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 187
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18% upon an event of default. The maturity date of the Yorkville CD will be 12 months after the issuance date. Yorkville
may convert the convertible debenture into shares of common stock at any time at a conversion price equal to the lower of (i) $1.375
(the “Fixed Price”) or (ii) a price per share equal to 93% of the lowest daily VWAP during the seven consecutive trading
days immediately prior to the conversion date (the “Variable Price”), but which Variable Price shall not be lower than the
floor price of $0.25 per share. Additionally, the Company, at its option, shall have the right, but not the obligation, to redeem early
a portion or all amounts outstanding under the Yorkville CD at a redemption amount equal to the outstanding principal balance being repaid
or redeemed, plus a 7% prepayment premium.

At
any time during the term that there is a balance outstanding under the Yorkville CD, Yorkville may convert an amount that shall not exceed
during any calendar month period, the greater of (i) an amount equal to 15% of the product of (A) the average of the daily traded amount
on each trading day during such period and (B) the VWAP for such trading day, and (ii) $750,000.

    14

On
January 22, 2025, Yorkville converted $3.7 million of its then outstanding
$4.1 million convertible debt balance for 5,032,233 common shares of the Company. The Company terminated the remaining outstanding balance
on the Yorkville CD of $0.4 million and SEPA with Yorkville Advisors Global L.P. (“Yorkville”). Under the strategic transaction,
GameSquare issued a zero-coupon, 60-day promissory note to Yorkville associated with remaining unconverted principal of $0.4 million and
a prepayment penalty of $0.4 million. Additionally, all shares previously owned by Yorkville,
were purchased by outside investors in block transactions that occurred on January 21, 2025. The prepayment penalty was recorded within Other operating expenses on
the consolidated statements of operations and comprehensive loss.

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