GameSquare Holdings Announces Sale of Complexity Gaming to Global Esports Properties, LLC for Over $10 Million
Background of Complexity Gaming under GameSquare Holdings
In a recent announcement, GameSquare Holdings, Inc. (NASDAQ: GAME) (TSX.V: GAME) revealed the sale of its highly regarded esports team, Complexity Gaming, to Global Esports Properties, LLC. This deal, encompassing all assets and intellectual property of Complexity Gaming, is currently pending approval from the TSX Venture Exchange.
Significant growth under GameSquare’s ownership
Since acquiring Complexity Gaming, GameSquare has witnessed exceptional growth. Sales for the organization have seen a remarkable increase of over 175% from 2021 to 2022. Moreover, Complexity’s Website social media integration following experienced a tenfold surge during this period, showcasing the successful collaboration between GameSquare and the esports team.
GameSquare’s CEO weighs in on the deal
Justin Kenna, GameSquare Holdings’ CEO, expressed mixed feelings about parting with Complexity. Despite the bittersweet separation, the transaction aligns with the company’s strategic asset Website image optimization plan. Kenna also hinted at GameSquare’s potential acquisition of FaZe Holdings, indicating the company’s ongoing evolution within the esports industry.
Terms of the sale
The sale terms include an upfront payment of $0.75 million from Global Esports, with the remaining amount financed through a 3-year seller note bearing an annual interest rate of 3.0%. Additionally, GameSquare will receive half of the proceeds generated by any equity raised by Global Esports exceeding $500,000, with these funds credited against the outstanding balance.
Complexity’s founder expresses gratitude
Jason Lake, Complexity Gaming’s founder and CEO, expressed appreciation for the partnership with GameSquare. He acknowledged the financial stability and growth achieved during their tenure together.
Previous and upcoming transactions
This transaction follows GameSquare’s divestiture of its Frankly radio assets in December 2023 and precedes the anticipated acquisition of FaZe Holdings. The merger with FaZe is expected to be finalized in the coming weeks, allowing GameSquare to replicate the success achieved with Complexity within FaZe’s operations.
Expansion into digital media and technology
GameSquare Holdings, a leading digital media and technology company, operates a platform linking brands with gaming and youth culture audiences. With a diverse portfolio ranging from digital media to creative production, the upcoming merger with FaZe Holdings is set to further expand GameSquare’s presence within the gaming organization sector.
Financial details and regulatory compliance
The financial terms of the Complexity Gaming sale comply with GameSquare Holdings, Inc.’s press release statement. The company has ensured adherence to TSX Venture Exchange regulations regarding anti-dilution provisions in a related convertible debenture, establishing a floor price of $3.00.
Forward-looking statements
The press release includes forward-looking statements, which GameSquare emphasizes are subject to inherent risks and uncertainties. The company vows to update these statements as required in accordance with legal obligations.
A significant milestone for GameSquare
The sale of Complexity Gaming represents a pivotal moment for GameSquare, embodying its strategic vision and dedication to enhancing shareholder value in the thriving esports industry.
