Complexity Gaming
  • GameSquare Holdings, Inc. has sold its Complexity Gaming e-sports team to Global Esports Properties, LLC, for US$10.36 million.
  • The sale is anticipated to close shortly upon the closing condition to receive TSXV approval for the transaction.
  • On Thursday, GameSquare and its Moonlight Studios world-building division announced it had created experiences for global leading brands
  • Shares of GameSquare Holdings were down 3.88 per cent, trading at C$2.00 as of 11:17 am ET

GameSquare Holdings, Inc. (TSX.V:GAME; NASDAQ:GAME) has announced it has sold its Complexity Gaming e-sports team to Global Esports Properties, LLC, for total consideration of US$10.36 million.

GameSquare and Complexity signed a membership interest purchase agreement dated Friday, and the sale is anticipated to close shortly upon the closing condition to receive TSXV approval for the transaction.

“Complexity is a leading e-sports organization that has experienced tremendous growth under GameSquare’s ownership, with annual sales increasing over 175 per cent and a 10x increase in the number of aggregate social followers from 2021 to 2022. While it is bittersweet to sell Complexity, there is no one better suited to take over than Jason and his team,” GameSquare CEO Justin Kenna said in a statement. “The Complexity transaction follows the December 2023 sale of our Frankly radio assets, as we continue to optimize our platform ahead of the pending acquisition of FaZe. Once the acquisition with FaZe closes, which is expected in the coming weeks, we are excited to get to work replicating the success we achieved with Complexity at FaZe. We believe this is a win-win for Complexity, Global Esports, GameSquare and the global e-sports leagues where Complexity and FaZe compete, as many leagues have rules around ownership of multiple teams. We look forward to rooting for Complexity and finding ways to continue to work with Jason and his team.”

Under the terms of the purchase agreement, Global Esports will pay GameSquare an aggregate of approximately US$10.36 million for Complexity’s assets and intellectual property including Complexity’s e-sports team, according to a news release. Global Esports will pay GameSquare US$0.75 million upon closing of the transaction. In addition, GameSquare and Global Esports have entered into a three-year seller financed note of approximately US$9.61 million, which accrues annual interest of 3 per cent to be paid to GameSquare in a balloon payment at the end of the term. GameSquare will also have the right to receive 50 per cent of the proceeds from any equity raised by Global Esports in excess of US$500,000 that will be credited against the outstanding principal balance of the seller financed note.

Global Esports Properties is an investor group led by Complexity’s founder and CEO Jason Lake.

“This is an epic moment in the history of Complexity and we’re grateful for this exciting opportunity,” Lake said in a statement. “I’d like to thank the Jones and Goff families and everyone at GameSquare for our years of successful collaboration. Together we’ve significantly grown Complexity’s revenues and built a financially stable organization. It’s now time to write the next chapter in our legendary story and I’m confident our loyal fans will greatly enjoy the years ahead.”

It’s been a busy week for GameSquare, which announced Thursday that it was planning multiple six-figure world-building activations during the 2024 first quarter.

GameSquare and its Moonlight Studios world-building division have created experiences for global leading brands, including one of the fastest-growing sports drinks, one of the largest payment technology companies, and one of the world’s largest QSR chains.

“Creating unique and innovative experiences for brands by building custom worlds inside metaverse-style games like ‘Fortnite,’ ‘Roblox’ and ‘Grand Theft Auto’ is a powerful tool to drive awareness, while also making it fun and authentic for gamers. With a team of professional gamers-turned-developers, GameSquare has the capabilities and experience to infuse a creative, hands-on approach into every campaign, which is why more and more global brands are turning to GameSquare to support their virtual, world-building efforts,” Kenna said in a statement.

GameSquare Holdings, Inc. is a vertically integrated, digital media, entertainment and technology company that connects global brands with gaming and youth culture audiences. GameSquare’s end-to-end platform includes GCN, a digital media company focused on gaming and e-sports audiences, Cut+Sew (Zoned), a gaming and lifestyle marketing agency, USA, Code Red Esports Ltd., a U.K. based e-sports talent agency, Fourth Frame Studios, a creative production studio, Mission Supply, a merchandise and consumer products business, Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform.

Shares of GameSquare Holdings (TSXV:GAME; NASDAQ:GAME) were down 3.88 per cent, trading at C$2.00 as of 11:17 am ET.

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