GameSquare Esports Inc. (CSE: GSQ; FRA: 29Q1) (“ GameSquare ”, “ GameSquare Esports ” or the “ Company ”), a Canadian gaming and esports company, is pleased to announce the closing of the previously announced acquisition of Reciprocity Corp. (“ Reciprocity ”), a privately held gaming and esports company headquartered in Toronto, Canada (the “ Transaction ”).
With the addition of Reciprocity, an established global gaming and esports brand, GameSquare now owns assets in the United States of America, Europe, Asia and Latin America, all large and rapidly growing global markets. The Transaction provides expanded access to important gaming and esports markets by complementing GameSquare’s operations in Europe through the Company’s subsidiary, Code Red Inc. (“ Code Red ”), The Authentic Esports Agency , with the Gaming Community Network (“ GCN ”), based in Los Angeles. As further described in a press release dated November 25, 2020, the combination of GameSquare and Reciprocity is expected to significantly increase the revenue profile of the combined entity and to result in a high growth company that generates positive EBITDA in the twelve months following the Effective Date (defined below). Please see the Company’s press release dated January 4, 2021 for more information about the arrangement agreement dated December 31, 2020 that was entered into by GameSquare and Reciprocity in connection with the Transaction (the “ Arrangement…
