GameSquare enters $20M PPA agreement with Yorkville Advisors

GameSquare Holdings has entered into a $20 million pre-paid advance agreement with an investment fund managed by Yorkville Advisors Global. In conjunction with the Yorkville transaction, the Company intends to repay the $5.7 million balance on its senior secured convertible note with King Street Partners. In accordance with the terms of the PPA, Yorkville has advanced $6.5 million in the form of a convertible debenture which will be purchased by Yorkville at 93% of the face amount and bear 0% interest. The advance will have a fixed conversion price of $1.375. In lieu of converting at the fixed price, Yorkville will have a limited right to convert the greater of $750,000 or 15% of the volume in any calendar month at 93% of the lowest VWAP during the seven consecutive trading days immediately prior to the conversion date. Any advances above the initial $6.5 million advance are at the complete discretion of the Company. Yorkville has contractually agreed to not short the stock while the PPA is outstanding.