GameSquare officially sell Complexity to Jason Lake
GameSquare announced this morning that they have received approval from TSXV to complete the sale, which was announced last Friday. Lake, who re-acquired the company alongside a lifelong best friend, set up a new company in order to complete the transaction.
Lake's ownership firm Global Esports has agreed to pay GameSquare a total compensation of $10.36 million for all company assets, intellectual property, and esports teams. GameSquare should receive $750,000 as of today for the closing of the transaction. There is a three-year balloon payment note of $9.61 million, accruing at 3.0% annual interest that is to be paid to GameSquare. A balloon payment is where the borrower will pay smaller payments each month, however the full balance of the loan is due upon maturity.
In a press release today, GameSquare CEO Justin Kenna remarked on the sale;
We are excited to complete the US$10.36 million sale of Complexity that follows the December 2023 sale of our Frankly radio business assets for US$3.40 million. Combined we have unlocked US$13.76 million of value for our shareholders, which we intend to strategically redeploy in our business and support the FaZe Holdings acquisition. In fact, FaZe had a market capitalization of US$14.00 million on October 19, 2023, the day before we announced the acquisition. Increasing our scale, enhancing our capabilities, and optimizing our assets are important near-term strategies as we focus on creating sustainable value for our shareholders
With GameSquare soon finalizing the sale of FaZe, it was expected that Complexity would be sold off. There was initial reports in December 2023 that Lake was searching for outside investment to potentially re-acquire the company. He was spotted during the BLAST Premier World Final doing a roadshow as he hoped to garner interest in the venture.
In a post remarking on sale last Friday, Lake said "The next chapter has begun. Hope you'll join us as it unfolds." Throughout the weekend Complexity and Lake himself have brought up older versions of the Complexity brand identity, hinting at a possible return to the iconic red and silver colors and logo. The company has even offered up old shirts featuring the retired branding just for the weekend alone.
Complexity's Counter-Strike team will be playing for a berth at the PGL Copenhagen Major later today against Liquid.
