Mr. Justin Kenna reports

GAMESQUARE COMPLETES THE SALE OF ITS NON-CORE RADIO BUSINESS ASSETS

Gamesquare Holdings Inc. has completed the sale of its Frankly non-core radio business assets to SoCast Inc. As a result of the $3.4-million (U.S.) asset sale, Gamesquare has added non-dilutive capital to its balance sheet. Gamesquare has also further strengthened its balance sheet by refinancing the company's convertible debt.

"After completing four acquisitions in under three years, we believe there are opportunities to streamline our operations, enhance our cost structure and add non-dilutive capital to support our business by unlocking the value of certain non-core assets such as the radio assets of Frankly," noted Justin Kenna, chief executive officer of Gamesquare. "In addition, selling just the radio assets of Frankly at approximately 1.8 times trailing 12-month sales, compared to Gamesquare's current market cap of approximately 0.4 times trailing 12-month sales, supports our strategies to unlock and drive value for our shareholders."

Convertible debenture refinancing

Gamesquare has retired a principal amount $5-million (U.S.) debenture that was due to mature in February, 2024, and replaced it with a principal $5.8-million (U.S.) convertible note issued to an arm's-length party that bears interest at 12.75 per cent, has a two-year term and is convertible at the holder's option into common shares of company at a price of $5 (U.S.) per share (subject to standard anti-dilution provisions). The issuance of the debenture has been conditionally approved by the TSX Venture Exchange.

Mr. Kenna continued: "I am also pleased to announce the successful refinancing of our convertible debt. As a result of today's announcements, we have further strengthened our balance sheet and working capital position, providing us with greater flexibility to invest in our growth initiatives."

The asset acquisition adds thousands of broadcast professional users to SoCast, and oncoming clients will benefit from the ecosystem of radio-specific digital products that SoCast has to offer within one dashboard. "SoCast is dedicated to helping radio broadcasters transform into digital businesses. This acquisition increases the impact of our R&D [research and development] footprint in the industry and bolsters our vision to be the leader in the space," said Elliott Hurst, chief executive officer of SoCast.

About Gamesquare Holdings Inc.

Gamesquare 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; 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, a provider of programmatic advertising and media distribution applications; Stream Hatchet, a provider of live streaming analytics services; and Sideqik, a social influencer marketing platform.

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