Jackpot Digital Inc. announced that it intends to conduct an unsecured convertible debenture financing to raise gross proceeds of up to CAD 3,000,000 and issue 40,000,000 share purchase warrants on July 10, 2023. The transaction will include participation from Kalpakian and a well-respected U.S. gaming industry executive. The debenture financing will pay interest at the rate of 10% per annum and will mature sixty (60) months from the date of issuance.

The debenture financing shall be convertible up to 40,000,000 common shares of the company at the conversion price of CAD 0.075 per common share in the first year, and at the conversion price of CAD 0.10 per common in subsequent years. In addition, the company shall issue 40,000,000 share purchase warrants, whereby each warrant shall entitle the debenture holder to purchase one Jackpot common share at the price of CAD 0.10 per share for a period of five years. The securities that may be issued in connection with the debenture financing shall include a hold period in accordance with applicable securities laws.

There may be finder?s fees payable in respect to the debenture financing in accordance with the policies of the Exchange, and certain insiders may participate in the financing. The debenture financing are subject to the approval of the TSX Venture Exchange.