Gamesquare Esports GMSQF

GSQ.C STONEGATE CAPITOL VALUATION

[Charts1]

Significant financial progress already made – GameSquare grew revenue significantly from Q2 FY’21 of $0.9M to Q2 FY’22 of $6.7M, an increase of over 600%.

The company has reported that the number and size of RFPs continue to grow and that its sales pipeline is its largest to date. Revenue guidance was increased twice in 2022 to a range of US$27.5M to US$30M. • Recent $3.0 million private placement – Led by strategic investors at a steep premium to market, the placement strengthens the company’s balance sheet while injecting capital to accelerate revenue growth.

Notably, the company has access to an undrawn $5M line of credit backed by its largest investors Jerry Jones and Goff Capital. • Experienced management team -

CEO Justin Kenna brings extensive experience in gaming, esports, and media as former CFO of FaZe Clan where he helped to drive revenue growth of 10x and was responsible for raising over $60M in debt and equity within three years.

CRO Sean Horvath is an accomplished executive with more than 18 years of experience in digital marketing and brand partnerships. Sean joined from StreamElements where he was the CRO and grew revenues ~20x. Jan Neumeister, the head of European Operations, brings a proven track record in digital marketing via FaZe Clan, Manchester City FC, and WPP.

• Valuation – We use a comparative analysis to frame valuation. Using an FY2023 Sales forecast, we arrive at a valuation range of US$0.30 to US$0.45.