Business
GameSquare Solidifies Balance Sheet Through a $20 Million Pre-Paid Advance Agreement with Yorkville Advisors Global L.P.
Financing Follows Non-Core Asset Sales that Raised over $36 Million of Non-Dilutive CapitalGameSquare Intends to Repay Outstanding Senior Secured Note with
About this update from Gamesquare Holdings, Inc.
[{"type":"text","content":"Financing Follows Non-Core Asset Sales that Raised over $36 Million of Non-Dilutive CapitalGameSquare Intends to Repay Outstanding Senior Secured Note with Unsecured Proceeds FRISCO, TX / ACCESSWIRE / July 9, 2024 / GameSquare Holdings, Inc. (NASDAQ:GAME), (\"GameSquare\", or the \"Company\"), today announced that it has entered into a $20 million pre-paid advance agreement (the \"PPA\") with an investment fund managed by Yorkville Advisors Global L.P (\"Yorkville\"). In conjunction with the Yorkville transaction, the Company intends to repay the $5.7 million balance on its senior secured convertible note with King Street Partners LLC.Justin Kenna, CEO of GameSquare stated, \"Today's announcement is the culmination of our efforts over the past seven months to strengthen our balance sheet - primarily through non-dilutive sales of non-core assets. I am also pleased to announce that we intend to repay our outstanding senior secured convertible note balance with King Street. With a strengthened balance sheet and capital position, we have the financial resources in place to support the growth strategies we are pursuing and take advantage of growing demand trends currently underway across our global markets.\"In accordance with the terms of the PPA, Yorkville has advanced $6.5 million in the form of a convertible debenture which will be purchased by Yorkville at 93% of the face amount and bear 0% interest. The advance will have a fixed conversion price of $1.375. In lieu of converting at the fixed price, Yorkville will have a limited right to convert the greater of 1) $750,000 or 2) 15% of the volume in any calendar month at 93% of the lowest VWAP during the seven consecutive trading days immediately prior to the conversion date. Any advances above the initial $6.5 million advance are at the complete discretion of the Company. Yorkville has contractually agreed to not short the stock while the PPA is outstanding.Northland Capital Markets acted as the sole placement agent for the transaction.This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.The offering of...