Mr. Jake Kalpakian reports
JACKPOT ENTERS INTO CONVERTIBLE DEBENTURES
Jackpot Digital Inc. proposes to enter into convertible debentures with various parties for an aggregate amount of up to $2-million, which will bear interest at the rate of 10 per cent per year and have a term of 36 months. At any time during the term, the holders of the convertible debentures may fully convert the principal amount into units of the company at the price of 15 cents per unit. Each unit shall consist of one common share and one share purchase warrant. Each share purchase warrant shall be exercisable at the price of 25 cents per share for a period of three years. In the event that the company's shares trade on the TSX-V at 50 cents per share or above for a period of 15 consecutive days, a forced exercise provision will come into effect for the warrants issued in connection with the convertible debentures. At any time after the first 18 months, the company shall have the right to partially or fully redeem the convertible debentures together with the accrued interest without any penalty. There may be finders' fees payable to arm's-length parties in respect to this proposed transaction.
The funds will be utilized toward the fulfilment of current orders for the company's Jackpot Blitz electronic table game (ETG) platform, regulatory licensing approvals in new jurisdictions from which the company has received orders, and development of two new products for new and existing customers. President and chief executive officer Jake Kalpakian, stated: "These funds will be very timely to allow the company to deploy more tables in the field as well as enter new markets. Furthermore, the company is continuing its pursuit of securing long-term conventional financing to meet order demand in a shareholder-friendly manner."
This proposed transaction shall be subject to the approval of the TSX Venture Exchange. The securities that may be issued pursuant to the convertible debenture shall be subject to four months and a day hold period in accordance with applicable Canadian securities laws.
About Jackpot Digital Inc.
Jackpot Digital is a leading electronic table game 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 complemented by a robust suite of back-end tools for operators to efficiently control and optimize their gaming businesses.
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