Complexity Gaming founder and CEO Jason Lake has reacquired Complexity from Frisco-based GameSquare Holdings through Global Esports Properties, an investor group led by Lake, for $10.36 million.
“This is an epic moment in the history of Complexity and we’re grateful for this exciting opportunity,” Lake said in a statement. “I’d like to thank the Jones and Goff families and everyone at GameSquare for our years of successful collaboration. Together we’ve significantly grown Complexity’s revenues and built a financially stable organization. It’s now time to write the next chapter in our legendary story and I’m confident our loyal fans will greatly enjoy the years ahead.”
GameSquare and Frisco-based Complexity signed an agreement earlier this month and the transaction is expected to close shortly.
GameSquare had acquired Complexity Gaming for $27 million in June 2021.
“I’m thrilled to announce that I have re-acquired Complexity Gaming, the company I founded 20 years ago,” Lake said on his LinkedIn page. “In the days immediately following the transaction our Counter-Strike, Rocket League, HALO and Apex squads all qualified for major events, so it’s been a crazy time.”
GameSquare acquiring another esports organization
GameSquare CEO Justin Kenna said that Lake is the best choice to take Complexity forward.
“Complexity is a leading esports organization that has experienced tremendous growth under GameSquare’s ownership, with annual sales increasing over 175% and a 10x increase in the number of aggregate social followers from 2021 to 2022,” Kenna said in a statement. “While it’s bittersweet to sell Complexity, there’s no one better suited to take over than Jason and his team.”
This transaction follows the December 2023 sale of GameSquare’s Frankly radio assets, Kenna said, and helps optimize their platform ahead of the pending acquisition of FaZe, a Los Angeles-based esports and entertainment organization, which is expected to close in the coming weeks.
Kenna said that he and his team are looking forward to getting to work replicating the success they achieved with Complexity at FaZe.
“We believe this is a win/win for Complexity, Global Esports, GameSquare and the global esports leagues where Complexity and FaZe compete, as many leagues have rules around ownership of multiple teams,” Kenna added. “We look forward to rooting for Complexity and finding ways to continue to work with Jason and his team.”
Terms of the deal
Under the terms of the agreement, Global Esports has agreed to pay GameSquare an aggregate of roughly $10.36 million for Complexity’s assets and intellectual property including Complexity’s esports team.
Global Esports will pay GameSquare $750,000 upon closing of the transaction.
Also, GameSquare and Global Esports have entered into a three-year seller financed note of roughly $9.61 million, which accrues annual interest of 3% to be paid to GameSquare in a balloon payment at the end of the term. GameSquare will have the right to receive 50% of the proceeds from any equity raised by Global Esports in excess of $500,000 that will be credited against the outstanding principal balance of the seller financed note, the companies said.
As announced in January, GameSquare entered into a principal $5.8 million convertible note that is convertible at the holder’s option into common shares of GameSquare at a price of $5 per share. As requested by the TSX Venture Exchange, GameSquare confirms that the anti-dilution provisions in
GameSquare Holdings is a vertically integrated, digital media, entertainment and technology company that connects global brands with gaming and youth culture audiences. Its platform includes GCN, a digital media company focused on gaming and esports audiences, Cut+Sew (Zoned), a gaming and lifestyle marketing agency, USA, Code Red Esports Ltd., a UK-based esports talent agency, Fourth Frame Studios, a creative production studio, Mission Supply, a merchandise and consumer products business, Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik, a social influencer marketing platform.
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