Guild Esports Takes Loan From UAE-Based Compassare Holdings

Key insights

6 takeaways

01
London-based Guild Esports has secured a £250,000 (approximately $314,000 USD) convertible loan from the UAE-based investment firm Compassare Holdings.
02
The loan carries an 8% interest rate and is scheduled for repayment by March 25, 2025.
03
Guild Esports intends to utilize the loan proceeds to cover its ongoing working capital requirements.
04
Compassare Holdings holds the option to convert the principal amount into new ordinary shares at a price of £0.00375 per share, representing a 25% premium over the company's share price as of March 28, 2024.
05
The conversion option must be exercised at least 30 days prior to the final repayment date of March 25, 2025.
06
Compassare Holdings is a diversified investment firm with interests in sectors including oil and gas, food and beverages, technology, and sustainable solutions.

Summary

London-based, publicly traded esports organization Guild Esports has secured a £250,000 (approximately $314,000 USD) convertible loan note from Compassare Holdings, a UAE-based investment firm with a diversified portfolio spanning sectors such as technology, energy, and sustainable solutions. The organization intends to utilize these funds to address its ongoing working capital requirements.

The financial agreement carries an 8% interest rate and is structured as a one-year term, with a scheduled repayment date of March 25, 2025. A key provision of the deal grants Compassare Holdings the option to convert the principal amount into new ordinary shares of the company. This conversion can be executed at any time up to 30 days before the final repayment date, at a price of £0.00375 per share, representing a 25% premium over the company’s share price as of March 28, 2024.

This transaction highlights the continued capital-raising efforts of Guild Esports, which maintains a competitive presence in titles including Counter-Strike 2, EA FC 24, and Fortnite. The organization, which counts football star David Beckham among its minority investors, has recently signaled its commitment to the broader Middle Eastern esports landscape through its participation in the Saudi Arabian government-backed Esports World Cup.