GameSquare Holdings, Inc. (NASDAQ: GAME) and FaZe Holdings Inc. (NASDAQ: FAZE) announced the completion of their merger, originally disclosed on October 20, 2023. Effective March 8, 2024, FaZe's common stock and warrants ceased trading. The combined entity now ranks among the world's largest gaming and esports organizations, boasting an audience reach of one billion.

GameSquare's CEO, Justin Kenna, highlighted the merger's strategic benefits, enhancing their position in global industries and enabling more effective brand engagement with younger demographics. FaZe's Director, Paul Hamilton, expressed excitement about the merger's potential to create shareholder value.

In 2023, FaZe focused on cost reduction, eliminating approximately $31 million in annualized operating costs by Q3 compared to Q4 2022, with plans to cut an additional $15 million in 2024. The merger is expected to strengthen GameSquare's competitive edge in the advertising and esports markets, despite current market challenges.

A non-brokered private placement raised $10 million, issuing 7,194,244 units at $1.39 per unit, including 1,079,136 warrants. The private placement's proceeds will support the merger, growth initiatives, and general corporate purposes. Following the merger and private placement, GameSquare's market capitalization stands at approximately $47 million, with 30.3 million common shares outstanding.

Legal advisors for GameSquare were BakerHostetler and Blake, Cassels & Graydon LLP, while FaZe's legal advisor was Sullivan & Triggs, LLP. Oak Hills Securities, Inc. served as GameSquare's exclusive financial advisor, and Current Capital Securities LLC provided a fairness opinion to FaZe's Board of Directors.