GameSquare Esports Completes Acquisition of Reciprocity, Collects $5.6M – The Esports Observer

GameSquare Esports Completes Acquisition of Reciprocity, Collects $5.6M – The Esports Observer

GameSquare Esports, the Canadian Securities Exchange-listed parent company of esports agency Code Red Esports, announced that it has completed its acquisition of Canadian esports organization Reciprocity. GameSquare acquired 100% of the issued and outstanding equity of Reciprocity for a consideration of approximately $14.44M CAD ($11.57M USD), paid by issuing 43.75M common shares of GameSquare at a deemed price of $0.33 ($0.26) per share. 

 Additionally, Reciprocity’s sellers will be entitled to receive between 5.23M to 9M additional common shares of GameSquare if Reciprocity surpasses certain financial conditions within a year of the transaction, which are generating a minimum of $5M in revenues and $1M in earnings before interest, taxes, depreciation, and amortization (EBITDA) or generating a minimum of $7M in revenues and an EBITDA of $1.4M. 

 Through the acquisition, GameSquare adds Reciprocity’s subsidiaries and esports organizations interests to its esports portfolio. Reciprocity owns the Los Angeles-based gaming and esports media network Gaming Community Network (GCN) and holds ownership interest in championship winning esports organizations based in Asia and Latin America – a 40% stake in Mexico-based Biblos Gaming, the parent company of esports
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