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GameSquare Sells Complexity Gaming for Over $10 Million

TL;DR

  • GameSquare’s sale of Complexity Gaming for $10+ million underscores strategic asset optimization in esports.
  • Complexity’s impressive growth under GameSquare’s ownership signals strong market performance.
  • Anticipation builds as GameSquare gears up for the FaZe Holdings acquisition, aiming to replicate Complexity’s success.

In a strategic move aimed at optimizing assets, GameSquare Holdings, Inc. (NASDAQ:GAME)(TSX.V:GAME) has announced the sale of its esteemed esports team, Complexity Gaming, to Global Esports Properties, LLC, for a total consideration exceeding $10 million. The deal, encompassing Complexity’s assets and intellectual property, was finalized today pending approval from the TSX Venture Exchange.

Stellar growth under GameSquare ownership

Under GameSquare’s stewardship, Complexity Gaming witnessed remarkable growth, reporting a staggering increase in sales of over 175% from 2021 to 2022. Additionally, the organization experienced a tenfold surge in social media followers, showcasing the successful collaboration between GameSquare and Complexity.

GameSquare’s CEO, Justin Kenna, expressed mixed emotions, noting that while parting with Complexity was bittersweet, the transaction aligns with the company’s strategic asset optimization strategy. Kenna also hinted at the forthcoming acquisition of FaZe Holdings, signaling GameSquare’s continued evolution within the esports landscape.

Terms of the sale

The terms of the sale entail an upfront payment of $0.75 million from Global Esports, with the remaining amount financed through a 3-year seller note bearing an annual interest of 3.0%, culminating in a balloon payment.

Moreover, GameSquare stands to benefit from half of the proceeds generated by any equity raised by Global Esports exceeding $500,000, with the proceeds credited against the outstanding balance.

Acknowledgment from complexity’s founder

Jason Lake, the founder and CEO of Complexity, expressed gratitude for the collaboration with GameSquare, acknowledging the growth and financial stability achieved during their tenure together.

Strategic transactions

This transaction follows GameSquare’s divestiture of its Frankly radio assets in December 2023 and precedes the anticipated acquisition of FaZe Holdings. The acquisition of FaZe is expected to be finalized in the coming weeks, with GameSquare aiming to replicate the success witnessed with Complexity within FaZe’s operations.

Expanding presence in digital media and technology

GameSquare Holdings, a prominent digital media and technology company, operates a comprehensive platform connecting brands with gaming and youth culture audiences. With a diverse portfolio spanning from digital media to creative production, the impending merger with FaZe Holdings is poised to further expand GameSquare’s foothold in the gaming organization sphere.

Financial terms and compliance

The financial terms of the Complexity sale adhere to a press release statement from GameSquare Holdings, Inc. The company has ensured compliance with TSX Venture Exchange regulations concerning anti-dilution provisions in a related convertible debenture, establishing a floor price of $3.00.

Forward-looking statements

While the press release outlines forward-looking statements, GameSquare emphasizes its commitment to transparency and acknowledges the inherent risks and uncertainties associated with such projections. The company pledges to update these statements as necessary in compliance with legal obligations.

The sale of Complexity Gaming marks a significant milestone in GameSquare’s journey, reflecting its strategic vision and commitment to maximizing shareholder value. As the esports industry continues to thrive, GameSquare’s strategic maneuvers position it strongly for future growth and success.

Disclaimer. This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Cryptopolitan.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Joel Oluwatobi

Joel is a Blockchain enthusiast who has been active in the blockchain sector since 2016. He enjoys talking about blockchain and its implications for the future of humanity. Joel is a firm believer that decentralization offers the gaming industry and players lots of unique benefits.

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