GameSquare Esports Inc. Enters into Letter of Intent to Acquire Reciprocity Corp. to Build a Leading Canadian Gaming and Esports Company

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TORONTO, Nov. 25, 2020 (GLOBE NEWSWIRE) -- GameSquare Esports Inc. (CSE: GSQ; FRA: 29Q1) (“GameSquare” or the “Company”), a Canadian gaming and esports company, is pleased to announce that it has signed a Letter of Intent (“LOI”) to acquire (the “Acquisition”) 100% of the issued and outstanding shares in Reciprocity Corp. (“Reciprocity”), a privately held gaming and esports company. Under the terms of the LOI, GameSquare Esports will issue 43,750,000 common shares of GameSquare to the shareholders of Reciprocity. Under the terms of the LOI, Reciprocity shareholders will receive 10 million additional GameSquare common shares if the Reciprocity business generates a minimum of US$5 million of revenue and US$1 million of EBITDA within 12 months of closing and an additional 10 million GameSquare common shares if the Reciprocity business generates a minimum of US$7 million of revenue and US$1.4 million of EBITDA within 12 months of closing. The Acquisition remains subject to, among other things, the parties entering into a definitive agreement, applicable shareholder and regulatory approvals. The combination of GameSquare and Reciprocity is expected to significantly increase the revenue profile of the combined entity and to result in a company that generates positive EBITDA in the twelve months following the close of the transaction.

“The acquisition of Reciprocity is another step toward building Canada’s leading esports company,” said Kevin Wright, CEO of GameSquare. “The team at Reciprocity has built a great organization that I believe will change the way the market looks at esports investing. Reciprocity and its wholly owned subsidiary GCN, Inc. (“GCN”) are led by industry veterans that understand the convergence of media, entertainment, sports and finance as shown by the top tier clients that GCN works with, while committing to growing an EBITDA positive business. I have high expectations of the leadership at Reciprocity and believe this will prove to be a transformative moment for GameSquare. We also believe the acquisition shows there is tremendous opportunity to acquire other companies serving the esports market that can benefit greatly as part of the GameSquare group of companies.”