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Jackpot Digital Announces Closing of the Private Placement and Jackpot's First Payment to Its Major Debentureholders
VANCOUVER, BC / ACCESSWIRE / August 17, 2023 / Jackpot Digital Inc. (the "Company" or "Jackpot")...
About this update from Jackpot Digital Inc.
[{"type":"text","content":"Jackpot Digital Announces Closing of the Private Placement and Jackpot's First Payment to Its Major DebentureholdersVANCOUVER, BC / ACCESSWIRE / August 17, 2023 / Jackpot Digital Inc. (the \"Company\" or \"Jackpot\") (TSXV:JJ)(TSXV:JJ.WT.B)(TSXV:JJ.WT.C)(US OTCQB:JPOTF) (Frankfurt Exchange:LVH3) announces that further to the Company's News Releases dated July 10, 2023, July 31, 2023 and August 2, 2023, the Company has closed the third and final tranche of the private placement of convertible debentures (the \"Debentures\") for aggregate gross proceeds of Cdn$614,170. The Debentures will bear interest at the rate of 10% per annum, and are convertible into common shares of the Company at the price of $0.075 per share in the first year and at $0.10 per share in the subsequent four years. The Company has also issued an aggregate of 47,732,700 share purchase warrants exercisable at $0.10 per share for a period of five years. The securities issued in the third and final tranche are subject to the statutory hold period, which will expire on December 15, 2023. The aggregate proceeds raised in all the three tranches is $3,579,952.50.The Company has paid to arm's length parties finder's fees of $6,506 in cash and has issued 86,750 non-transferable share purchase warrants exercisable at $0.10 per share for a period of two years.The Company's President & CEO, Mr. Jake Kalpakian, through his private company, participated in the third tranche of the private placement of convertible debentures and such participation is considered to be a \"related party transaction\" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") adopted in the Policy. The Company relied upon the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5 (c) and 5.7 (1)(a) of MI 61-101 in respect of related party participation in the offering.Proceeds from the private placement convertible debenture financing will be utilized towards regulatory licensing fees and related expenses in multiple jurisdictions to facilitate the widespread placement of Jackpot Blitz® ETGs, and for general working capital.Well-respected casino entrepreneur, Mr. Lyle Berman, added to his position by subscribin...