Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 17

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 17
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the “Promissory Note”), an aggregate
principal amount of up to $6.5 million (the “Pre-Paid Advance”), which was funded on July 8, 2024. The purchase price for
the Pre-Paid Advance is 93.0% of the principal amount of the Pre-Paid Advance. Interest shall accrue on the outstanding balance of the
Pre-Paid Advance at an annual rate equal to 0%, subject to an increase to 18% upon an event of default as described in the Promissory
Note. The maturity date of the Promissory Note issued in connection with the Pre-Paid Advance will be 12 months after the issuance date
of such Promissory Note. Yorkville may convert the Promissory Note 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 of the Promissory Note (the “Variable Price”), but
which Variable Price shall not be lower than the Floor Price then in effect. The “Floor Price” will be the lower of (i) $0.25
per share or (ii) 20% of the average VWAP of the Common Stock for the five trading days immediately prior to the date of effectiveness
of the Resale Registration Statement. 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 Promissory Notes at a redemption amount equal to the outstanding principal balance
being repaid or redeemed, plus a 7% prepayment premium, plus all accrued and unpaid interest; provided that (i) the Company provides
Yorkville with no less than ten trading days’ prior written notice thereof and (ii) on the date such notice is issued, the VWAP
of the Common Stock is less than the Fixed Price.

At
any time during the Commitment Period that there is a balance outstanding under the Promissory Note, Yorkville may deliver notice (an
“Investor Notice”) to the Company to cause an Advance Notice to be deemed delivered to Yorkville and the issuance and sale
of shares of Common Stock to Yorkville pursuant to an Advance (an “Investor Advance”) in an amount not to exceed the balance
owed under the Prom