GameSquare Esports to Provide Growth Capital to Acquisition Target Through US$250,000 Loan Agreement Prior to the Closing of the Previously Announced $7.0 Million Financing

TORONTO, March 01, 2021 (GLOBE NEWSWIRE) -- GameSquare Esports Inc. (CSE: GSQ; OTC: GMSQF; FRA: 29Q1) (“GameSquare”, “GameSquare Esports”, or the “Company”), an international esports company, announces today that it has entered into a loan agreement with Reciprocity Corp. (“Reciprocity”) dated February 26, 2021, pursuant to which the Company expects to extend a US$250,000 loan (the “Loan”) to Reciprocity. The Loan is unsecured, bears interest at 8% per annum and must be repaid within one year. The proceeds are to be used by Reciprocity to accelerate organic profitable growth by hiring key personnel within the Gaming Community Network (“GCN”) to assist the company in achieving its earnout goals set out in the arrangement agreement in respect of the Transaction (defined below), pursuant to which GameSquare is expected to acquire all of the issued and outstanding equity of Reciprocity (the “Transaction”). The Loan remains subject to the approval of the Canadian Securities Exchange (“CSE”).

“The team at Reciprocity have a robust and growing sales pipeline at GCN which requires key personnel to strike while the iron is hot,” said Justin Kenna, CEO of GameSquare Esports. “By funding Reciprocity early, we are enabling GCN to hit the ground running and start converting potential sales into revenue and EBITDA prior to the acquisition closing, which is expected in the coming days. GameSquare is well capitalized and looking to accelerate organic growth within its portfolio company and continues to assess potential M&A to enhance shareholder value.”

Please see the Company’s press releases dated January 4, 2021, January 12, 2021 and February 23, 2021 for more information about the Transaction and the Company’s press releases dated February 8, 2021 and February 9, 2021 for more information about the $7 million bought deal private placement (the “Financing”), each of which are available under the Company’s profiles at www.sedar.com and www.theCSE.com. The Financing and the Transaction are expected to close in early and mid-March 2021, respectively.

About GameSquare

GameSquare is an international esports company headquartered in Toronto, Canada. The Company is seeking to acquire additional assets and entities serving the esports market and, more broadly, in sports and entertainment. GameSquare’s acquisition of Code Red Esports Ltd. (“Code Red”), an esports talent agency, provided an initial foothold in Europe through its UK operations. Code Red represents leading on-screen talent, players and influencers and works with leading global brands to develop influencer campaigns and esports marketing strategies.