GameSquare Announces US$3.0 Million Private Placement Led by Strategic Investors Support Accelerated Revenue Growth Trajectory and Strengthen the Company’s Balance Sheet on Approach to Profitability

TORONTO, ON / ACCESSWIRE / October 3, 2022 / GameSquare Esports Inc. (CSE:GSQ)(OTCQB:GMSQF)(FRA:29Q1) ("GameSquare", or the "Company"), announces closing of a US$3.0 million non-brokered private placement (the "Offering"). This capital injection will further support already accelerated revenue growth, while strengthening the Company's balance sheet as GameSquare approaches profitability. The Offering is led by strategic investors from Silicon Valley, key executives from media & entertainment, and professional athletes.

"The opportunity to add strategic investors made up of such highly successful, connected, and influential business people across many synergistic industries, should be seen as not only recognition of the value of GameSquare's strategic business positioning within its core market but also a reflection of the investment opportunity," said Justin Kenna, CEO of GameSquare. "This injection of capital, along with the backstop of a $5 million line of credit by the Jones and Goff families, further supports our hyper growth trajectory and provides greater balance sheet support as we approach profitability. Our digital media agencies are a foundation for sustainable long-term growth as we build a leading, monetizable content creation business to complement the world-class teams within Complexity Gaming. With an audience of more than 220 million, and a business model that supports large, expanding growth, we are well positioned for continued business momentum across our existing clients, and for any large and global brand, who is seeking to reach gaming and esports fans."

Details of the Offering

The Offering consisted of 29,900,000 units of the Company (the "Units") at a price of C$0.14 per Unit for gross proceeds of US$3 million. The subscription was paid in US dollars based on an agreed to Bank of Canada exchange rate.

Each Unit consisted of one common share of GameSquare (a "Common Share") and 0.200669 of a purchase warrant of the Company (each whole warrant, a "Warrant") resulting in 6 million Warrants. Each Warrant will entitle the holder to purchase one Common Share at an exercise price of C$0.20, commencing on September 30, 2023, and expiring on September 30, 2027.

The net proceeds of the Offering are expected to be used to advance the business of GameSquare and for general corporate purposes. The Units issued under the Offering, and any underlying securities thereof, are subject to a hold period expiring four months and one day after the date of issuance.