GameSquare Raises $8.0 Million to Boost Ethereum Treasury Strategy

GameSquare Holdings, Inc., a next-generation media, entertainment, and technology company, has announced the pricing of its underwritten public offering. The offering involves the sale of 8,421,054 shares of common stock (or common stock equivalents) at a price of $0.95 per share, with expected aggregate gross proceeds of approximately $8.0 million before deducting underwriting discounts, commissions, and offering expenses. The company intends to use the majority of the proceeds to accelerate the launch of its newly formed Ethereum (ETH) based treasury strategy, supported by a strategic alliance with Dialectic, a global leader in crypto-native capital management.

Justin Kenna, CEO of GameSquare, expressed confidence in the support from high-quality investors and leaders in decentralized finance. He highlighted the partnership with one of the world’s top crypto investment firms to generate real, on-chain yield while deepening the company’s expertise in decentralized finance, pursuing new revenue streams, and strengthening the balance sheet. Kenna also mentioned that this new treasury management strategy enhances financial flexibility and allows for a defined capital allocation plan focused on pursuing additional ETH asset purchases, funding potential share repurchases, and reinvesting in growth initiatives.

GameSquare’s ETH-focused yield generation strategy is built on top of Dialectic’s proprietary platform Medici, which applies machine learning models, automated optimization, and multi-layered risk controls to generate best-in-class risk-adjusted returns. The targeted yields of 8-14% significantly exceed the current ETH staking benchmarks of 3-4%. Dialectic’s program includes multi-layered risk management protocols that are widely recognized as providing the best risk-adjusted yields in DeFi. GameSquare’s new Ethereum-focused treasury vehicle may also incorporate additional yield-generating strategies across the Ethereum ecosystem, potentially utilizing assets such as stablecoins and non-fungible tokens to diversify and amplify returns.

GameSquare’s Board has approved an ETH allocation of up to $100 million, based on staged investments over time, while keeping adequate working capital for the operating business. Kenna emphasized that the company’s crypto strategy reinforces its existing foundation in gaming, technology, and media, and is aligned with the broader trend of institutional adoption of digital assets. He also noted the strategic partnership with leaders in the crypto space, including Ryan Zurrer of Dialectic and Rhydon Lee of Goff Capital, and expressed excitement about the quick progress being made.

Lucid Capital Markets is acting as the sole book-running manager for the offering. In addition, the Company has granted the underwriter a 45-day option to purchase up to an additional 1,263,157 shares of its common stock (or common stock equivalents) at the public offering price, less the underwriting discounts and commissions. The offering is expected to close on or about July 9, 2025, subject to customary closing conditions.

The offering is being made pursuant to a shelf registration statement filed with the Securities and Exchange Commission (SEC) on March 4, 2025, and declared effective by the SEC on June 4, 2025. A preliminary prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available on the SEC’s website. A final prospectus supplement will be filed with the SEC. Copies of the final prospectus supplement and accompanying prospectus relating to the offering, when available, may also be obtained by contacting Lucid Capital Markets, LLC.

GameSquare’s mission is to revolutionize the way brands and game publishers connect with hard-to-reach Gen Z, Gen Alpha, and Millennial audiences. Their next-generation media, entertainment, and technology capabilities drive compelling outcomes for creators and maximize the brand partners’ return on investment. Through a purpose-built platform, they provide award-winning marketing and creative services, offer leading data and analytics solutions, and amplify awareness through FaZe Clan Esports, one of the most prominent and influential gaming organizations. With one of the largest gaming media networks, GameSquare is reshaping the landscape of digital media and immersive entertainment.

This news release contains forward-looking statements within the meaning of the applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates, and projections as at the date of this news release. These forward-looking statements relate to the Company’s future performance, revenue, growth, and profitability, as well as the Company’s ability to execute on its current and future business plans. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.