Artificial Intelligence | News | Insights | AiThority
[bsfp-cryptocurrency style=”widget-18″ align=”marquee” columns=”6″ coins=”selected” coins-count=”6″ coins-selected=”BTC,ETH,XRP,LTC,EOS,ADA,XLM,NEO,LTC,EOS,XEM,DASH,USDT,BNB,QTUM,XVG,ONT,ZEC,STEEM” currency=”USD” title=”Cryptocurrency Widget” show_title=”0″ icon=”” scheme=”light” bs-show-desktop=”1″ bs-show-tablet=”1″ bs-show-phone=”1″ custom-css-class=”” custom-id=”” css=”.vc_custom_1523079266073{margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}”]

GameSquare Esports Inc. Enters into Letter of Intent to Acquire Reciprocity Corp. to Build a Leading Canadian Gaming and Esports Company

GameSquare Esports, a Canadian gaming and esports company, is pleased to announce that it has signed a Letter of Intent (LOI) to acquire 100% of the issued and outstanding shares in Reciprocity, a privately held gaming and esports company. Under the terms of the LOI, GameSquare Esports will issue 43,750,000 common shares of GameSquare to the shareholders of Reciprocity. Under the terms of the LOI, Reciprocity shareholders will receive 10 million additional GameSquare common shares if the Reciprocity business generates a minimum of US$5 million of revenue and US$1 million of EBITDA within 12 months of closing and an additional 10 million GameSquare common shares if the Reciprocity business generates a minimum of US$7 million of revenue and US$1.4 million of EBITDA within 12 months of closing. The Acquisition remains subject to, among other things, the parties entering into a definitive agreement, applicable shareholder and regulatory approvals. The combination of GameSquare and Reciprocity is expected to significantly increase the revenue profile of the combined entity and to result in a company that generates positive EBITDA in the twelve months following the close of the transaction.

Recommended AI News: BrainChip Appoints Geoffrey Carrick As Non-Executive Director

“The acquisition of Reciprocity is another step toward building Canada’s leading esports company,” said Kevin Wright, CEO of GameSquare. “The team at Reciprocity has built a great organization that I believe will change the way the market looks at esports investing. Reciprocity and its wholly owned subsidiary GCN, Inc. (“GCN”) are led by industry veterans that understand the convergence of media, entertainment, sports and finance as shown by the top tier clients that GCN works with, while committing to growing an EBITDA positive business. I have high expectations of the leadership at Reciprocity and believe this will prove to be a transformative moment for GameSquare. We also believe the acquisition shows there is tremendous opportunity to acquire other companies serving the esports market that can benefit greatly as part of the GameSquare group of companies.”

Related Posts
1 of 28,876

“The acquisition by GameSquare is the start of another exciting chapter for Reciprocity,” added David Fawcett, CEO of Reciprocity. “We have identified a highly scalable vertical within esports and I believe that bridging the gap between brands, gamers and esports is the path to high revenue growth, EBITDA and the creation of tremendous shareholder value. We work with top tier global brands and see fantastic synergies between our North American operations and GameSquare’s presence in the UK and EU through Code Red Esports. The opportunity to become part of the GameSquare group of companies is anticipated to accelerate our revenue growth and help us to realize our long-term vision of building a significant gaming and esports digital media company.”

Recommended AI News: Switch Breaks Ground On Second And Third Tahoe Reno Data Centers Following Multi-Megawatt Expansions With Global E-Commerce And Semiconductor Clients

Reciprocity is a leading Canadian gaming and esports company; its main asset, wholly owned subsidiary GCN, bridges the gap between leading global brands and the gaming and esports community by developing and distributing world-class marketing activations. Additionally, Reciprocity owns 49% of a CrossFire franchise in China with its partner LGD Gaming and 40% of a League of Legends team in LATAM, Rainbow 7; both teams won their respective championships in 2020. GameSquare continues to build its pipeline of potential acquisitions to accelerate growth and scale with a focus on companies with a proven track record of high growth and profitability.

Recommended AI News: Storm ID And Zebra Medical Vision To Co-Develop Revolutionary New AI Based Osteoporosis Prevention Solution As Part Of UK-Israel Collaboration

Leave A Reply

Your email address will not be published.