Jackpot extends $1.4M (U.S.) debenture to Sept. 7

Executive Summary

• Jackpot Digital Inc. has agreed to extend the maturity date of an existing $1.4-million USD secured debenture to September 7, 2026, with the Lyle A. Berman Revocable Trust acting as guarantor.
• The company announced a convertible debenture financing to raise up to $1.5-million CAD in gross proceeds.
• The new financing includes 10% annual interest, a 36-month maturity, and warrants with specific acceleration clauses based on share price performance.

Key Details

• Debenture Extension:
  • Principal amount: $1.4-million (U.S.).
  • Original maturity date: March 7, 2026.
  • New maturity date: September 7, 2026.
  • Guarantor: Lyle A. Berman Revocable Trust.
• Convertible Debenture Financing:
  • Gross proceeds: Up to $1.5-million (Canadian).
  • Interest rate: 10% per annum.
  • Maturity: 36 months from the date of issuance.
  • Conversion price: 10 cents per common share.
  • Conversion period: Three years.
• Warrant Terms:
  • Quantity: Up to 15 million share purchase warrants.
  • Exercise price: 13 cents per share.
  • Expiry: Three years.
  • Acceleration Clause: If common shares trade at $0.25 or higher on the TSX Venture Exchange for 10 consecutive trading days (after six months from closing), the company may accelerate warrant expiry. Notice must be issued within 5 business days of the last day of the 10-day period, with warrants expiring 30 calendar days after the news release date.
• Use of Proceeds:
  • Regulatory licensing fees and related expenses in multiple jurisdictions.
  • Industry product certifications.
  • General working capital.
• Other Terms:
  • Securities subject to applicable securities law hold periods.
  • Finders' fees may be payable.
  • Insiders may participate in the financing.
  • Transaction subject to exchange approval.

Notable Quotes

• None provided in the text.