Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 35

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 35
---
 the daily traded amount
on each trading day during such period and (B) the VWAP for such trading day, and (ii) $750,000.

    17

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, 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