GameSquare Esports, a Canadian company listed on the e-sports agency Code Red Esports, has announced the completion of its purchase of Reciprocity. GameSquare acquired 100% of Reciprocity's issued and outstanding shares for $ 11.57 million.
Securities holders will also be eligible for additional GameSquare shares if the company reaches certain targets within 12 months of the close of the deal.
With the addition of Reciprocity, an established global gaming and esports brand, GameSquare now owns assets in the United States of America, Europe, Asia and Latin America, in all of the world's largest and fastest growing markets. The deal provides expanded access to important gaming and esports markets, complementing GameSquare's European operations through its subsidiary Code Red, Authentic Esports Agency and GCN.
Earlier, Reciprocity tried to go public and on February 27, 2020 wrote a letter of intent to carry out a reverse takeover of Rainy Hollow Ventures, listed on the TSX Venture Exchange. Shortly thereafter, in March, Reciprocity founder Chad Larsson announced that his organization would release all staff and scale down to just its CrossFire team and co-ownership of the League of Legends Team Rainbow7.
In addition, the completion of the mutual acquisition satisfied the terms of the escrow of the previously announced private placement of shares raised by GameSquare, as a result of which the company gained access to the raised $ 5.6 million.