GameSquare Esports Inc. (CSE:GSQ, FRA:29Q1) said it has closed its previously announced "bought deal" private placement offering for gross proceeds of $8.5 million.
Canaccord Genuity (TSX:CF, LSE:CF) Corp. acted as lead underwriter and sole bookrunner for the offering on behalf of a syndicate of underwriters who purchased or arranged for substituted purchasers of 21,250,000 units of the company at a price of $0.40 per unit.
Furthermore, the company also announced the concurrent closing of its non-brokered private placement whereby the Jones family and the Goff family subscribed for an additional $8.5 million of units of GameSquare on the same terms as those in the offering.
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Each unit in the offering consists of one common share of GameSquare and one-half of one purchase warrant. Each warrant is exercisable for one common share at an exercise price of $0.60 per common share for a period of 24 months from the closing date of the offering, subject to a warrant acceleration right. That is if, at any time following the closing of the offering, the daily volume-weighted average trading price of GameSquare common shares on the Canadian Securities Exchange is greater than $1.00 per common share for the preceding 10 consecutive trading days, the company shall have the right to accelerate the expiry date of the warrants to a date that is at least 30 trading days following the date of such written notice and press release.
In consideration for the services rendered in connection with the offering, the company has paid the underwriters a cash commission equal to 7% of the gross proceeds received by the company from the sale of units under the brokered offering, and issued an aggregate of 1,487,500 broker warrants, with each broker warrant exercisable into that number of units at an exercise price of $0.40 for a period of 36 months from the closing date.
The net proceeds of the offering, along with the net proceeds of the non-brokered offering, will be used to advance the business of GameSquare and for general working capital purposes.
The units issued under the offering and non-brokered offering, and any underlying securities thereof, will be subject to a hold period in Canada expiring four months and one day from the closing date of the offering and non-brokered offering, respectively.
The units have not been, and will not be, registered under the US Securities Act of 1933, as amended, and the units issuable under the offering may not be offered or sold in the United States, absent registration or an applicable exemption from registration.
GameSquare Esports is an international gaming and esports company headquartered in Toronto, Canada. It is seeking to acquire additional assets and entities serving the gaming and esports markets and, more broadly, in sports and entertainment.
The company owns a portfolio of companies including Complexity Gaming, a top tier esports organization based in Frisco, USA, Code Red Esports Ltd., an esports talent agency serving the UK, and Reciprocity Corp. which provides access to Asia, Latin America, and North America.
Its gaming and esports assets include: a CrossFire franchise in China that it owns with its partner LGD Gaming, a 40% interest in a League of Legends team that competes in Latin America, and its wholly-owned subsidiary corporation, GCN, Inc., a digital media company focusing on the gaming and esports audience based in Los Angeles, USA.
Contact the author at jon.hopkins@proactiveinvestors.com