Champion Gaming Group Inc (TSX-V:WAGR) has said that it will not proceed with its previously-announced non-brokered private placement of secured convertible promissory notes.
Instead, it will enter into promissory notes with arm's length creditors, secured by a general security agreement over the assets of the company, up to an aggregate principal amount of $800,000, the Toronto-based company said.
The loan amount will be used for general working capital purposes.
READ: Champion Gaming intends to complete a non-brokered private placement of secured convertible promissory notes for gross proceeds of up to C$800,000
Champion Gaming said that in connection with the promissory notes, it will issue up to an aggregate of 1,600,000 common shares, representing 20% of the loan amount divided by the market price, 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 15% per annum until the maturity date. Interest will be payable quarterly, in cash or common shares, at the then current market price of the common shares, subject to the policies of the TSXV.
The company said in the event that it repays any principal amount of the promissory notes prior to the maturity date, it 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 then current market price of the common shares, subject to the rules of the TSXV.
Closing of the promissory notes is subject to the receipt of all necessary corporate and regulatory approvals, including the approval of TSXV, it added.
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.
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.
Contact the author at jon.hopkins@proactiveinvestors.com