GameSquare Holdings, the parent company of FaZe Clan, has secured a $10 million (~£7.8 million) convertible note agreement with GigaMoon Media. The deal is aimed at supporting GameSquare's strategy of raising non-dilutive capital while also repaying its existing equity line facility with Yorkville Advisors Global L.P. This follows an earlier agreement in which GameSquare secured a $20 million (~£15.61 million) Pre-Paid Advance Agreement (PPA) with an investment fund managed by Yorkville.
The convertible note, which matures on December 31st, 2025, will convert into GameSquare’s common stock at a price of $2.50 per share or 5.725 million shares of FaZe Media Series A-1 Preferred Stock. FaZe Media, a subsidiary formed following the merger of GameSquare and FaZe Clan last year, houses the media-related intellectual property of FaZe Clan. In June, GameSquare sold a 25.5% stake in FaZe Media to FaZe Clan founder Richard ‘FaZe Banks’ Bengston for $9.5 million (~£7.5 million).
GigaMoon Media, controlled by Matt Kalish, President and Co-Founder of DraftKings, has a notable presence in the esports and gaming sectors. Along with the creation of FaZe Media, GigaMoon Media made an $11 million (~£8.68 million) investment in the subsidiary. If GigaMoon opts to convert the note into shares of FaZe Media, GameSquare’s market valuation would increase to $44 million, up from its current market cap of around $32 million.
Justin Kenna, CEO of GameSquare, emphasized that the $10 million convertible note represents a continuation of the company’s efforts to secure shareholder-friendly, non-dilutive capital. He highlighted the potential growth opportunities within the company and expressed confidence that with a strengthened financial position, GameSquare is well-positioned to capitalize on the increasing demand for esports content across global markets.
ADD A COMMENT :