Jackpot Enters into Convertible Debentures
Wednesday, May 15, 2019 2:07 PM
VANCOUVER, BC / ACCESSWIRE / May 15, 2019 / Jackpot Digital Inc. (the "Company" or "Jackpot") (TSX-V: JP) (TSX-V: JP. WT) (US OTCQB: JPOTF) (Frankfurt & Berlin Exchanges: LVH2). The Company wishes to announce that it proposes to enter into convertible debentures with various parties for an aggregate amount of up to Cdn $2,000,000 ("Convertible Debentures") which will bear interest at the rate of 10% per annum, and which will have a term of thirty-six (36) months (the "Term"). 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 Cdn $0.15 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 $0.25 per share for a period of three years. In the event that the Company's shares trade on the TSX-V at $0.50 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 eighteen (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 finder's fees payable to arm's length parties in respect to this proposed transaction.
The funds will be utilized towards the fulfillment of current orders for the Company's Jackpot BlitzTM 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 & CEO Jake Kalpakian, states, "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 Inc. is a leading electronic table games 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 complimented by a robust suite of backend tools for operators to efficiently control and optimize their gaming business.
For more information on the Company, please contact Jake H. Kalpakian, President and CEO, at (604) 681-0204 ext. 6105, or visit the Company's website at www.jackpotdigital.com.
On behalf of the Board of
Jackpot Digital Inc.
"Jake H. Kalpakian"
Jake H. Kalpakian
President & CEO
Trading in the securities of the Company should be considered speculative.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.
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 news release.
Certain statements contained herein are "forward-looking". Forward-looking statements may include, among others, statements regarding future plans, costs, objectives, economic or technical performance, or the assumptions underlying any of the foregoing. In this News Release, words such as "may", "would", "could", "will", "likely", "enable", "feel", "seek", "project", "predict", "potential", "should", "might", "objective", "believe", "expect", "propose", "anticipate", "intend", "plan", "estimate", and similar words are used to identify forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, projections and estimations, there can be no assurance that these assumptions, projections or estimations are accurate. Readers, shareholders and investors are therefore cautioned not to place reliance on any forward-looking statements as the plans, assumptions, intentions or expectations upon which they are based might not occur.
SOURCE: Jackpot Digital Inc.