- GameSquare Esports (GSQ) has closed a C$7 million private placement
- The proceeds will be held in escrow until the company meets certain conditions relating to its proposed acquisition of Reciprocity Corp
- The company plans to use the proceeds to advance business operations in North America and Europe
- GameSquare is an international esports company headquartered in Toronto, Canada
- GameSquare Esports (GSQ) is down 6.25 per cent and is currently trading at C$0.45 per share
GameSquare Esports (GSQ) has closed a C$7 million private placement.
The company exchanged 16,700,000 subscription receipts at a price of C$0.42 per receipt for proceeds of C$7,014,000.
A syndicate led by Canaccord Genuity underwrote the offering.
The proceeds will be held in escrow until GameSquare satisfies certain conditions relating to its proposed acquisition of Reciprocity Corp., a professional esports and entertainment company.
These conditions include written confirmation of both companies’ satisfaction with the acquisition, all required regulatory approvals, as well as GameSquare not being in breach of covenants related to the transaction.
If the escrow release date has not occurred within 90 days following the closing date of the offering, the subscription receipts will be cancelled and the proceeds of the offering will be returned to subscribers.
On the escrow release date, each subscription receipt automatically converts into one unit of the company. Each unit is made up of one common GameSquare share and one half of one common share purchase warrant.
Each warrant will be exercisable to purchase one common share at an exercise price of C$0.60 for a period of 36 months from the escrow release date.
GameSquare plans to use the net proceeds to advance business operations in North America and Europe.
GameSquare is an international esports company headquartered in Toronto, Canada. The company is seeking to acquire additional assets and entities serving the esports market and, more broadly, in sports and entertainment.
GameSquare Esports (GSQ) is down 6.25 per cent and is currently trading at C$0.45 per share as of 9:32 am EST.
