London-based, publicly traded esports organization Guild Esports (LSE: GILD; OTCQB: GULDF) announced Tuesday in a public filing that it has signed a “convertible loan note agreement” with United Arab Emirates-based Compassare Holdings for £250K GBP, or roughly $314K USD. Under the terms of this new agreement, Compassare will provide Guild with the principal amount of £250K on a one-year term and an interest rate of 8%. Guild said in its announcement that it expects to pay back the note by March 25, 2025, with interest.
The company said that it will use the proceeds for its “working capital requirements.”
Under the terms of this agreement, Compassare also has the right to convert the principal amount into “new ordinary shares of £0.001 each in the Company at any time at least 30 days before the final payment date, with a conversion price of £0.00375, equal to a 25% premium to the Company’s share price as of March 28, 2024.”
Guild describes Compassare as a “UAE-based investment company with holdings across sectors including oil and gas, food and beverages, technology, and sustainable solutions.”
Guild Esports, which has a minority investment from football star David Beckham, currently competes in Counter-Strike 2, EA FC 24, Fortnite, Street Fighter 6, and sim racing. The company was one of the first organizations in the world to commit to competing in the Saudi Arabian government-backed gaming and esports festival, the Esports World Cup, in October when it was formally announced.