GameSquare Esports, the Canadian Securities Exchange-listed parent company of esports agency Code Red Esports, announced that it has signed an agreement to fully acquire Canadian esports organization Reciprocity.
According to the agreement, GameSquare will issue $14.44M CAD ($11.41M USD) worth of shares to certain Reciprocity security holders, which will also be entitled to receive additional GameSquare shares if specific revenue and profit goals are met within 12 months of the acquisition’s closing.
Reciprocity previously attempted to go public and entered into a letter of intent on Feb. 27, 2020, to perform a reverse takeover with TSX Venture Exchange-listed Rainy Hollow Ventures. Shortly after in March, Reciprocity founder Chad Larsson announced that his organization will release all staff and scaled down to only its Crossfire team and co-ownership of League of Legends team Rainbow7.
GameSquare expects the deal to close in early March and announced to share further details on the agreement later this month.
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