Company: GAME
Filing Date: 2025-07-18
Form Type: 424B5
Source: 0001641172-25-020129
Chunk: 23

Company: GameSquare Holdings, Inc.
Filing Date: 2025-07-18
Form: 424B5
Chunk 23
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investment company” under the Investment Company Act of 1940, as amended, or the 1940 Act, and could adversely affect the market price of Ethereum and the market price of our common stock.

Under Sections 3(a)(1)(A) and (C) of the 1940 Act, a company generally will be deemed to be an “investment company” for purposes of the 1940 Act if (1) it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities or (2) it engages, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and it owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. We do not believe that we are an “investment company,” as such term is defined in the 1940 Act, and are not registered as an “investment company” under the 1940 Act as of the date of this prospectus.

While senior SEC officials
have stated their view that Ethereum is not a “security” for purposes of the federal securities laws, a contrary determination
by the SEC could lead to our classification as an “investment company” under the 1940 Act, if the portion of our assets consists
of investments in Ethereum exceeds 40% safe harbor limits prescribed in the 1940 Act, which would subject us to significant additional
regulatory controls that could have a material adverse effect on our business and operations and may also require us to change the manner
in which we conduct our business.

We monitor our assets and
income for compliance under the 1940 Act and seek to conduct our business activities in a manner such that we do not fall within its definitions
of “investment company” or that we qualify under one of the exemptions or exclusions provided by the 1940 Act and corresponding
SEC regulations. If Ethereum is determined to constitute a security for purposes of the federal securities laws, we would take steps to
reduce the percentage of Ethereum that constitute investment assets under the 1940 Act. These steps may include, among others, selling
Ethereum that we might otherwise hold for the long term and deploying our cash in non-investment assets, and we may be forced to sell
our Ethereum at unattractive prices. We may also seek