Mr. Justin Kenna reports

GAMESQUARE HOLDINGS REPORTS STANDALONE FIRST QUARTER 2023 RESULTS FOR GAMESQUARE ESPORTS AND PROVIDES FIRST QUARTER PRO-FORMA INCOME STATEMENT

Gamesquare Holdings Inc. predecessor Gamesquare Esports Inc. has filed its stand-alone financial results for its first quarter ended March 31, 2023. As a result of the April 11, 2023, merger of Gamesquare Esports and Engine Gaming and Media Inc., Gamesquare provided a pro forma income statement for the 2023 first quarter. The company expects to file its second quarter 2023 consolidated financial statements for the combined entity in August of 2023. The company has also provided 2023 guidance as a consolidated company.

"With the merger now behind us, our business momentum is accelerating, driven by a record pipeline, increasing ad spend and the benefits of the merger. In addition, we believe advertising partners are already recognizing the value of our combined company's assets. We recently have signed several significant brand deals across numerous verticals, including health care, automotive and CPG, with average expected contract values north of seven figures. We believe that our record pipeline and recent wins indicate that global brands see the value of Gamesquare's leading end-to-end media platform and our success helping companies connect with gaming and youth audiences. As a result of the merger, Gamesquare now serves approximately 350 brands, 1,500 creators and has an aggregate audience reach over 500-million," said Justin Kenna, chief executive officer of Gamesquare.

"Since our inception in late 2020, we have invested heavily in our business to build industry-leading capabilities, create new and innovative revenue opportunities, complete a transformational merger, and assemble a team of experienced, motivated and passionate leaders, talent and influencers. With a solid foundation, we are focused on successfully integrating the merger, scaling our business and pursuing a path to profitability. As we look forward, we believe pro forma annual sales of the combined company in 2023 will be between $75[-million] and $80-million. In addition, we have identified approximately $8-million of annualized cost savings and other opportunities to streamline and optimize the combined company. We expect annual gross margin in 2023 will range between 30 per cent and 35 per cent. As a result, we believe we will see significant improving trends towards profitability starting in the second half of 2023," continued Mr. Kenna.

"I am encouraged by the growing momentum under way, as we focus over the near term on integrating the merger, growing sales and accelerating our path to profitability. I am excited by the direction we are headed, and I look forward to updating you on the progress we are making as we convert our growing pipeline into profitable sales," concluded Mr. Kenna.

First quarter 2023 Gamesquare Esports stand-alone highlights (comparisons are with prior-year period):

• Revenue of $5,050,713, compared with $5,040,074;
• Gross margin increased to 40.2 per cent, compared with 32.6 per cent;
• Net loss of $4,258,273, compared with a net loss of $3,993,629;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $2,255,835, compared with a loss of $2,742,172.

First quarter 2023 pro forma highlights:

• Revenue of $13,843,347, compared with $12,897,929 in the prior-year period;
• Gross margin of $4,267,983 or 30.8 per cent in Q1 2023;
• Net loss of $12,150,604 in Q1 2023;
• Adjusted EBITDA loss of $5,045,947, compared with loss of $7,333,281 in the prior-year period.

Conference call details

Mr. Kenna, CEO, Lou Schwartz, president, Paul Bozoki, former chief financial officer of Gamesquare Esports, and Mike Munoz, CFO of Gamesquare Holdings, are scheduled to host a conference call with the investment community. Analysts and interested investors can join the call via the details below:

Date: Thursday, May 18, 2023

Time: 5 p.m. ET

About Gamesquare Holdings Inc.

Gamesquare Holdings 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 in the United States; Code Red Esports Ltd., a United Kingdom-based e-sports talent agency; Complexity Gaming, a leading e-sports organization; 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.

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