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Jackpot Digital Inc (3)
Symbol	JJ
Shares Issued	132,059,302
Close 2023-07-10	C$ 0.07
Market Cap	C$ 9,244,151
Recent Sedar+ Documents

Jackpot renegotiates debt deal with debentureholders

2023-07-10 18:22 ET - News Release

Subject: Jackpot Digital Inc. - News Release dated July 10, 2023 PDF Document File: Attachment JJ NR Payment Sched Deb_Major Debentureholders_July10 2023 (FINAL).pdf NEWS RELEASE JACKPOT DIGITAL RENEGOTIATES DEBT AND PAYMENT SCHEDULE WITH SIGNIFICANT SAVINGS Vancouver, British Columbia. July 10, 2023 Jackpot Digital Inc. (the "Company" or "Jackpot") (TSX- V: JJ) (TSX-V: JJ.WT.B) (TSX-V: JJ.WT.C) (US OTCQB: JPOTF) (Frankfurt Exchange: LVH3) has entered into a Third Amendment Agreement with the Company's major Debentureholders in respect to debentures in the aggregate principal amount of Cdn$4,966,825 (US$3,735,297), whereby the parties have agreed to a new payment schedule. Subject to certain terms and conditions, the new payment schedule shall commence on July 31, 2023, and shall terminate on July 1, 2025. In addition, the Company has entered into a Subsequent Extension Agreement in respect to a debenture in the principal amount of Cdn$328,000, whereby the parties have agreed to a new payment schedule. Subject to certain terms and conditions, the new payment schedule shall commence on July 31, 2023, and shall terminate on July 1, 2025. In aggregate the new payment schedule is as follows: 1) US$700,000 by July 31, 2023; 2) US$1,300,000 by July 1, 2024; and 3) US$2,742,497 by July 1, 2025. If the new payment schedule is met, the Debentureholders have agreed to a significant reduction in interest payments, thus savings to the Company would be approximately Cdn$4,045,091 (US$3,042,108). Upon making the scheduled payments and therefore benefitting from the reduced interest expense, the Company will eliminate a substantial amount of its debt. In the event the Company defaults on the new payment schedule, then the remaining principal outstanding shall immediately be due and payable along with all accrued and unpaid interest to the Debentureholders. The Company also announces that it intends to conduct an unsecured convertible debenture financing to raise up to Cdn$3,000,000 in gross proceeds (the "Debenture Financing"). The Debenture Financing will pay interest at the rate of 10% per annum and will mature sixty (60) months from the date of issuance (the "Maturity Date"). The Debenture Financing shall be convertible up to 40,000,000 common shares of the Company at the conversion price of C$0.075 per common share in the first year, and at the conversion price of $0.10 per common in subsequent years. In addition, the Company shall issue 40,000,000 share purchase warrants, whereby each warrant shall entitle the debenture holder to purchase one Jackpot common share at the price of $0.10 per share for a period of five years. It is expected President & CEO Jake Kalpakian and a well-respected U.S. gaming industry executive will be participating in the financing. Proceeds from the Debenture Financing will mainly be utilized towards regulatory licensing fees and related expenses in multiple jurisdictions, industry product certification, and for general working capital. Jackpot's President & CEO Mr. Jake Kalpakian states, "The significant interest expense savings of approximately Cdn$4,045,091 is a tremendous boost to the Company. Furthermore, with our latest GLI industry testing certification well underway, the additional capital will put the Company in a stronger position to expand its growing business." The securities that may be issued in connection with the Debenture Financing shall include a hold period in accordance with applicable securities laws. There may be finder's fees payable in respect to the Debenture Financing in accordance with the policies of the Exchange, and certain insiders may participate in the financing. Jackpot Digital Inc. Suite 303, 570 Granville Street Vancouver, BC V6C 3P1 Tel: (604) 681-0204 Fax: (604) 681-9428 www.jackpotdigital.com info@jackpotdigital.com Jackpot Digital Inc. Page 2 - News Release July 10, 2023 The Third Amendment Agreement, the Subsequent Extension Agreement and the Debenture Financing are subject to the approval of the TSX Venture Exchange. About Jackpot Digital Inc. Jackpot Digital Inc. is a leading electronic table games manufacturer and mobile gaming provider for the cruise ship industry and regulated casino industry. The Company specializes in multiplayer gaming products, including poker and casino games, which are complimented by a robust suite of backend tools for operators to efficiently control and optimize their gaming business. For more information on the Company, please contact Jake H. Kalpakian, President and CEO, at (604) 681- 0204 ext. 6105, or visit the Company's website at www.jackpotdigital.com. On behalf of the Board of Jackpot Digital Inc. "Jake H. Kalpakian"_________ Jake H. Kalpakian President & CEO Trading in the securities of the Company should be considered speculative. The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Certain statements contained herein are "forward-looking". Forward-looking statements may include, among others, statements regarding Jackpot's future plans, the obtaining of customary regulatory approvals, projected or proposed financings, costs, objectives, economic or technical performance, or the assumptions underlying any of the foregoing. In this News Release, words such as "may", "would", "could", "will", "likely", "enable", "feel", "seek", "project", "predict", "potential", "should", "might", "objective", "believe", "expects", "propose", "anticipate", "intend", "plan", "plans" "estimate", and similar words are used to identify forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, projections and estimations, there can be no assurance that these assumptions, projections or estimations are accurate. Readers, shareholders and investors are therefore cautioned not to place reliance on any forward-looking statements as the plans, assumptions, intentions or expectations upon which they are based might not occur. Jackpot Digital Inc. Suite 303, 570 Granville Street Vancouver, BC V6C 3P1 Tel: (604) 681-0204 Fax: (604) 681-9428 www.jackpotdigital.com info@jackpotdigital.com