Simran Joshi
GameSquare, a leading player in the esports and media sector, has announced a convertible note set to mature on December 31st, 2025, with the potential to convert into either GameSquare’s common stock or shares of FaZe Media’s Series A-1 Preferred Stock.
This move comes as part of the company’s ongoing efforts to raise non-dilutive capital and strengthen its financial position.
GameSquare, which owns FaZe Media, recently secured a significant $11 million investment from Matt Kalish, the co-founder of DraftKings, further solidifying the subsidiary’s value and potential in the esports landscape. This announcement marks a pivotal moment in GameSquare’s strategy to fuel its growth and capitalize on emerging market opportunities.
GameSquare Convertible Note and Share Conversion Potential
GameSquare’s convertible note, which due for maturation on December 31st, 2025 allows a conversion right into shares of the common stock of GameSquare at a rate of $2.50 per share or 5.725 million shares of FaZe Media Series A-1 Preferred Stock.
That is a huge overhang in the company’s stock structure depending on whether GigaMoon Media converts its option.
If GigaMon exercises its preference for the FaZe Media shares, it would raise the market valuation of GameSquare from the current market valuation of $32 million to $44 million. It is a reaction to the growing interest in FaZe Media from investors about its future prospects.
Strategic Growth and Capital Raising Efforts
For its part, GameSquare’s Chief Executive officiated that the company remains focused on securing non-dilutive capital through shareholder-friendly transactions.
The platform continues to attract strong strategic investors, such as in the most recent $10 million capital raise at a $2.50 conversion price.
She said that a facility with Yorkville towards repayment of the equity line would bolster GameSquare’s books. The firm stands in a very good position to exploit the growing demand trends across the global markets with a much stronger balance sheet.
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