Pharma & Biotech
Coronavirus
Cannabis
Battery Metals
Psychedelics
Pharma & Biotech
Coronavirus
Cannabis
Battery Metals
Psychedelics
07:44 Tue 05 Apr 2022
GameSquare Esports is on a path to level up in 2021 with targeted gaming and media acquisitions
«The backing of Goff Capital and the Jones Family with a meaningful investment from a new, long-term strategic investor provides us with the capital necessary to continue our path to profitability amid high revenue growth,” the company’s CEO Justin Kenna said
GameSquare Esports Inc. (CSE:GSQ) has announced a fully subscribed US$3 million non-brokered private placement backed by its largest shareholders as well as a strategic new investor.
The Toronto-based gaming and esports company said the capital injection along with the recently announced entry into a letter of intent for a US$5 million credit facility illustrates the strong support that it has from its largest investors, Goff Capital and the Jones Family, owners of the Dallas Cowboys.
Importantly, it said the private placement adds a new strategic investor, a New York-based fund with large, long-term esports investments, to support our growth goals and objective to complete merger and acquisition (M&A) transactions at significantly higher valuations.
«Enhanced liquidity and the addition of a new strategic investor strengthens GameSquare and supports our growth agenda,» the company’s CEO Justin Kenna said in a statement. «The backing of Goff Capital and the Jones Family with a meaningful investment from a new, long-term strategic investor provides us with the capital necessary to continue our path to profitability amid high revenue growth.”
GameSquare said it has received and accepted irrevocable subscription agreements for an aggregate of US$3 million to purchase common shares at C$0.14 each, to be paid in US dollars based on an agreed Bank of Canada exchange rate.
The net proceeds of the offering are to be used to advance its business and for general corporate purposes, the company said.
“Our profitable digital media agencies are a foundation for sustainable long-term growth as we build a leading, monetizable content creation business to complement the world-class teams within Complexity Gaming,” Kenna added. “With an audience of more than 220 million, we are well-positioned to work with the largest brands in the world seeking to reach gaming and esports fans.”
Company insiders subscribed for a total of US$2 million under the offering, constituting a «related party transaction”. However, GameSquare said the participation of the insiders is exempt from the formal valuation and minority shareholder approval requirements as neither the fair market value of the shares subscribed for by the insiders nor the consideration paid for the shares exceeds 25% of its market capitalization.
«GameSquare is executing on all fronts. We are incredibly excited about the future of esports and the role that it has taken on to shape the industry,” concluded Goff Capital’s Travis Goff, who is also a board director at GameSquare. “We expect significant revenue growth going forward and are thrilled to continue to support the company and team during these exciting times.»
GameSquare said it expects to close the offering and enter into a definitive agreement in respect of the credit facility later this week.
GameSquare, an international gaming and esports company headquartered in Toronto, Canada, is seeking to acquire additional assets and entities serving the gaming and esports markets and, more broadly, in sports and entertainment.
It owns a portfolio of companies including Code Red Esports Limited, an esports talent agency serving the UK, Reciprocity Corp, which provides the group access to Asia, Latin America and North America, NextGen Tech LLC, doing business as Complexity Gaming, and Cut+Sew and Zoned, a gaming and lifestyle marketing agency based in Los Angeles, US.
Contact the author at [email protected]
Add related topics to MyProactive
Create your account: sign up and get ahead on news and events
The above has been published by Proactive Investors Limited (the «Company») on its website and is made available subject to the terms and conditions of use of its website (see T&C ). …
GameSquare Esports Inc (CSE:GSQ) (FRA:29Q1) CEO Justin Kenna tells Proactive that its subsidiary Code Red Esports Limited has been awarded a contract to provide esports consultancy services to apparel brand US Polo Assn., which belongs to the United States Polo Association (USPA). Kenna says…
Prev article
Next article
Only registered members can use this feature.
or
Copyright © Proactive Group Holdings Inc, 2022
All Rights Reserved – Proactive North America Inc., Proactive Investors LLC.
Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping us understand which sections of the website you find most interesting and useful. See our Cookie Policy for more information.
Strictly Necessary and Functional
These cookies are used to deliver our website and content. Strictly necessary cookies relate to our hosting environment, and functional cookies are used to facilitate social logins, social sharing and rich-media content embeds.
Advertising
Advertising Cookies collect information about your browsing habits such as the pages you visit and links you follow. These audience insights are used to make our website more relevant.
Performance
Performance Cookies collect anonymous information designed to help us improve the site and respond to the needs of our audiences. We use this information to make our site faster, more relevant and improve the navigation for all users.
