GameSquare Esports to Provide Growth Capital upon Acquisition
TORONTO, March 1, 2021 (GLOBE NEWSWIRE) – GameSquare Esports Inc. (CSE: GSQ; OTC: GMSQF; FRA: 29Q1) (“GameSquare“,”GameSquare Esports“, or the”Company), An international esports company, announced today that it has entered into a loan agreement with Reciprocity Corp. (“Reciprocity“) As of February 26, 2021, pursuant to which the Company expects to make a loan of US $ 250,000 (the”Ready”) To reciprocity. The loan is unsecured, bears interest at 8% per annum and must be repaid within one year. The proceeds are to be used by Reciprocity to accelerate profitable organic growth by hiring key personnel within the Gaming Community Network (“GCNTo assist the Company in meeting its compensation targets set out in the Transaction Arrangement Agreement (defined below), under which GameSquare is expected to acquire all of the issued and outstanding equity of Reciprocity (the “Transaction”). The loan remains subject to the approval of the Canadian Securities Exchange (“CSE”).
“The Reciprocity team has a strong and growing sales pipeline at GCN, which forces key personnel to strike while the iron is hot,” said Justin Kenna, CEO of GameSquare Esports. “By funding Reciprocity early, we allow GCN to kick-start and begin converting potential sales into revenue and EBITDA before the acquisition closes, which is expected in the coming days. GameSquare is well capitalized and seeks to accelerate organic growth within its portfolio company and continues to assess potential mergers and acquisitions to increase shareholder value. “
Please see the Company’s press releases dated January 4, 2021, January 12, 2021 and February 23, 2021 for more information on the transaction and the Company’s press releases dated February 8, 2021 and February 9, 2021 for more information on the $ 7 million purchased. grant a private placement (the “Funding”), Each of which is available under Company Profiles at www.sedar.com and www.theCSE.com. The financing and the transaction are expected to close in early and mid-March 2021, respectively.
GameSquare is an international esports company headquartered in Toronto, Canada. The Company seeks to acquire additional assets and entities serving the esports market and, more broadly, sports and entertainment. Acquisition by GameSquare of Code Red Esports Ltd. (“Red code”), An esports talent agency, has provided a first foothold in Europe through its UK operations. Code Red represents top talent, players and influencers onscreen and works with leading global brands to develop influencer campaigns and esports marketing strategies.
For more information, please contact Kevin Wright, President of GameSquare:
Telephone: (416) 861-2267
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements“) within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as of the date of this press release. Any statement involving discussion of predictions, expectations, beliefs, plans, projections, goals, assumptions, future events or performance (often but not always using expressions such as “s ‘expects “, or” does not expect “,” is expected “,” anticipates “or” does not anticipate “,” plans “,” budget “,” planned “,” forecast “,” estimates “,” believes “or” intends “or variations of such words and phrases or stating that certain actions, events or results” may “or” could “,” would “,” could “or” will “be supposed to occur or be realized) are not statements of historical fact and may be forward-looking statements. In this press release, forward-looking statements relate to, among other things: the ability of the company to obtain a CSE the approval and extension of the reciprocal loan, the expected timing of the financing and the transaction , the use of reciprocal loan proceeds, the business and operations of the company and the ability of the company to execute its business plans. Forward-looking statements are necessarily based on a number of estimates and assumptions which, although considered reasonable, are subject to risks, uncertainties and other known and unknown factors which may cause actual results and events to occur. futures differ materially from those expressed or implied. by these forward-looking statements. These factors include, but are not limited to: general business, economic, competitive, political and social uncertainties. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on any forward-looking statements and information contained in this press release. Except as required by law, GameSquare assumes no obligation to update any forward-looking statements of beliefs, opinions, projections or other factors, if they change, except as required by law.
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