Business
Jackpot Extends the Maturity Date of Existing Debentures and Secures Additional Loan
VANCOUVER, BC / ACCESSWIRE / August 14, 2019 / Jackpot Digital Inc. (the “Company...
About this update from Jackpot Digital Inc.
[{"type":"text","content":"Jackpot Extends the Maturity Date of Existing Debentures and Secures Additional LoanVANCOUVER, BC / ACCESSWIRE / August 14, 2019 / Jackpot Digital Inc. (the “Company” or “Jackpot”) (TSX-V:JP)(TSX-V:JP.WT)(OTCQB:JPOTF)(Frankfurt:LVH2). The Company wishes to announce that the maturity date of the existing debt owed by the Company under secured debentures to certain lenders totalling the principal amount of Cdn $4,927,575 plus accrued interest has been extended to July 1, 2021.Furthermore, the Company announces that it has entered into a loan agreement dated effective August 9, 2019 (the “Loan Agreement”) with certain of its existing lenders, two of which are the Company's main creditors (the “Lenders”). Pursuant to the Loan Agreement, the Lenders have lent an aggregate principal amount of $600,000 to the Company, which bears simple interest at the rate of 5% per annum (the “Loan”). The principal amount of the Loan will be added to the principal amount owing under the existing secured debentures of the Lenders. The funds received will be utilized by the Company towards working capital and for the manufacturing of Jackpot BlitzTM electronic table game units which the Company already has customer orders for and which are time sensitive. The Loan is repayable under certain terms and conditions, including repayment to the extent of any funds raised by the Company pursuant to any future equity and/or debt financing, and in any event no later than July 1, 2021. The Company continues to seek additional equity and/or debt financing but no assurance can be given that any financing will be completed. The Company has the right to prepay in whole or in part the Company’s debt without notice or penalty.In connection with the existing debentures and the additional Loan, the Company intends to incorporate a wholly-owned subsidiary (the “Company’s Wholly-Owned Subsidiary”) and transfer its operating assets to the Company’s Wholly-Owned Subsidiary on or before December 31, 2019. The issued shares of the Company’s Wholly-Owned Subsidiary will be pledged to the Lenders as security for the Loan.President & CEO Mr. Jake Kalpakian, states “This is another significantly positive development for the Company. The additional loan allows...