Champion Gaming Announces Proposed Promissory Notes
Toronto, Ontario--(Newsfile Corp. - July 28, 2022) - Champion Gaming Group Inc. (TSXV: WAGR) ("Champion Gaming" or the "Company") announced today that further to its press release of July 15, 2022, the Company will not proceed with its previously announced non-brokered private placement of secured convertible promissory notes.
In addition, the Company announced today that it proposes to enter into secured promissory notes (the "Promissory Notes") with arm's length creditors to the Company (the "Creditors"), subject to the approval of the TSX Venture Exchange (the "TSXV"), up to an aggregate principal amount of $800,000 (the "Loan Amount"). The Promissory Notes will be secured by a general security agreement over the assets of the Company and will mature twenty-four (24) months from the closing date (the "Maturity Date"). The Loan Amount will be used by the Company for general working capital purposes. In connection with the Promissory Notes, the Company will issue up to an aggregate of 1,600,000 common shares (the "Common Shares") of the Company, representing 20% of the Loan Amount divided by the Market Price (as defined and determined in accordance with the policies of the TSXV) at a deemed price of $0.10 per Common Share as a loan bonus.
Interest on the outstanding principal amount of the Promissory Notes will accrue from the original date of issue at a rate of fifteen percent (15%) per annum until the Maturity Date. Interest will be payable quarterly, in cash or Common Shares at the option of the Company at the then current market price of the Common Shares, subject to the policies of the TSXV. Furthermore, in the event that the Company elects to repay any principal amount of the Promissory Notes prior to the Maturity Date, the Company will pay an early repayment penalty in an amount equal to the amount of interest that would otherwise be payable up to the Maturity Date in cash or Common shares at the option of the Company at the then current market price of the Common Shares, subject to the policies of the TSXV.
Closing of the Promissory Notes is subject to receipt of all necessary corporate and regulatory approvals, including the approval of TSXV. All Common Shares issued in connection with the Promissory Notes will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation.
About Champion Gaming
Champion Gaming is a sports content, data and analytics company that provides predictive and prescriptive analytical models and win probability applications and statistics in the sports industry for teams, media, fans, and bettors. The sports analytical and data solutions currently offered by Champion to its customers include: a fully customized probability engine, interactive sports matchup models, spread and over/under distributions, and sports statistics and historical data statistics.
Further information on Champion Gaming can be found on SEDAR at www.sedar.com.
For further information, please contact:
Champion Gaming Group Inc.
Chief Executive Officer
Cautionary Statement on Forward-Looking Information
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 release.
This news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
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