Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 47

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 in Delaware Chancery Court by Nathan Carter (“Plaintiff”
), a purported stockholder of B. Riley Principal 150 Merger Corp. (“BRPM”),  against several former directors of BRPM,
Faze Holdings, Inc.’s predecessor, and several other BRPM affiliated entities, challenging the disclosures made in connection with
the July 2022 merger between BRPM and Faze Holdings, The Company is required to indemnify certain of the defendants due to its subsequent
acquisition of FaZe Holdings, Inc. As previously reported, the Company, the Plaintiff and the defendants entered into a settlement
agreement in February 2025 (the “Settlement Agreement”) pursuant to which the parties agreed to tentative terms resolving
the matter, subject to approval from the Court of Chancery. On September 22, 2025, the Court of Chancery granted final approval of the
Settlement Agreement, pursuant to which the Company and BRPM agreed to pay to Plaintiff a total of $3.25 million in cash, $2.15 million
of which the Company had the option to in the form of shares of its Common Stock in lieu of cash. As of the date of this Report, the
Company and BRPM have made the required settlement payment amounts in cash in full. As a result the litigation has been resolved.

Alta
Partners v. FaZe Holdings, Inc. On April 23, 2025, Alta Partners, LLC (“Alta”) filed a complaint against FaZe Holdings, Inc.
and GameSquare Holdings, Inc., in the United States District Court for the Southern District of New York, alleging that in 2022, FaZe
Holdings breached a warrant agreement between FaZe Holdings and Alta. On August 11, 2025, the Company entered into a Settlement and Release
Agreement with Alta Partners, LLC, pursuant to which the Company agreed to issue to Alta $150,000 of the Company’s restricted Common
Stock (“Settlement Shares”). In the event that the collective value of the Settlement Shares drops below $150,000 on the
six-month anniversary date following issuance of the Settlement Shares, or the next business day if the six-month anniversary date falls
on a weekend or holiday (the collective value to be computed based on the Nasdaq closing price of the Company’s common stock on
that six-month anniversary date, or the next business day if the six-month anniversary date falls on a weekend or holiday), then within
three