GameSquare Unloads Frankly’s Radio Business Assets for $3.4M USD

GameSquare, a publicly traded esports and gaming company, has executed a strategic divestment of non-core assets to streamline operations and improve its financial position. In January 2024, the company completed the sale of radio business assets held by its subsidiary, Frankly Media, to SoCast for $3.4 million USD. Management indicated that this transaction was designed to unlock value for shareholders, noting that the sale price represented approximately 1.8 times the trailing 12-month sales for those specific assets.

Concurrent with the asset sale, GameSquare addressed its capital structure by refinancing its debt. The company retired a $5 million USD debenture that was scheduled to mature in February 2024. This obligation was replaced with a $5.8 million USD convertible note issued to an arm’s length party. The new note carries a 12.75% interest rate, features a two-year term, and includes an option for the holder to convert the debt into common shares at a price of $5 per share.

These financial maneuvers occur as GameSquare continues to manage a diverse portfolio of esports entities, including Complexity Gaming, and prepares for the anticipated acquisition of FaZe Clan. By shedding non-core business segments and restructuring its debt, the company aims to enhance its cost structure and secure non-dilutive capital to support its broader strategic objectives within the competitive gaming and media landscape.