Business
GameSquare Completes the Sale of Its Non-Core Radio Business Assets
Sale Adds Non-Dilutive Capital and Supports GameSquare's Focus on Marketing Technology CapabilitiesGameSquare Refinances Convertible DebentureFRISCO, TX /
About this update from Gamesquare Holdings, Inc.
[{"type":"text","content":"Sale Adds Non-Dilutive Capital and Supports GameSquare's Focus on Marketing Technology CapabilitiesGameSquare Refinances Convertible DebentureFRISCO, TX / ACCESSWIRE / January 2, 2024 / GameSquare Holdings, Inc. (\"GameSquare\") (NASDAQ:GAME)(TSXV:GAME), announces that it has completed the sale of its Frankly non-core radio business assets to SoCast, Inc. (\"SoCast\"). As a result of the US$3.4 million asset sale, GameSquare has added non-dilutive capital to its balance sheet. GameSquare also announced today that it has further strengthened its balance sheet by refinancing the Company's convertible debt.\"After completing four acquisitions in under three years, we believe there are opportunities to streamline our operations, enhance our cost structure and add non-dilutive capital to support our business by unlocking the value of certain non-core assets such as the radio assets of Frankly,\" noted Justin Kenna, CEO of GameSquare. \"In addition, selling just the radio assets of Frankly at approximately 1.8x trailing 12-month sales, compared to GameSquare's current market cap of approximately 0.4x trailing 12-month sales, supports our strategies to unlock and drive value for our shareholders.\"Convertible Debenture RefinancingGameSquare has retired a principal amount US$5 million debenture that was due to mature in February of 2024, and replaced it with a principal US$5.8 million convertible note issued to an arm's length party that bears interest at 12.75%, has a two-year term, and is convertible at the holder's option into common shares of Company at a price of US$5 per share (subject to standard anti-dilution provisions). The issuance of the debenture has been conditionally approved by the TSX Venture Exchange.Mr. Kenna continued, \"I am also pleased to announce the successful refinancing of our convertible debt. As a result of today's announcements, we have further strengthened our balance sheet and working capital position, providing us with greater flexibility to invest in our growth initiatives.\"The asset acquisition adds thousands of broadcast professional users to SoCast, and oncoming clients will benefit from the ecosystem of radio specific digital products that SoCast has to offer within one dashboard. \"SoCast is dedicated to helping radio broadcasters transform into digital businesses. This acquisition increases the i...