GameSquare enters into $10M convertible note

GameSquare (GAME) Holdings has entered into a $10 million convertible note transaction with Gigamoon Media, LLC, an investment entity controlled by Matt Kalish. Under the terms of the transaction, the conversion date is December 31, 2025, at which time the note, at Gigamoon Media LLC’s election, will convert into either shares of GameSquare’s common stock at a conversion price of $2.50 per share, or 5.725 million shares of FaZe Media Series A-1 Preferred Stock beneficially held by GameSquare. GameSquare intends to use the proceeds from the convertible note to pay down GameSquare’s existing equity line facility with an investment fund managed by Yorkville Advisors Global and for general corporate purposes.If Kalish elects to convert the Note into the remaining shares of FaZe Media it would value the entity at approximately $44 million, compared to GameSquare’s current market cap of approximately $32 million. GameSquare still owns 100% of FaZe esports.