Champion Gaming Group Inc (TSX-V:WAGR) said it has entered into secured promissory notes with arm's length creditors to the company of an aggregate principal amount of $800,000.
The promissory notes are secured by a general security agreement over the assets of the company and will mature on August 3, 2024, the Toronto-based sports content, data and analytics company said in a statement.
The loan amount will be used by the company for general working capital purposes.
The announcement follows a statement on July 28 that Champion Gaming had decided not to proceed with a previously announced non-brokered private placement of secured convertible promissory notes.
READ: Champion Gaming drops planned private placement for secured promissory notes with arm's length creditors
In connection with the promissory notes, Champion Gaming issued 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.
The company said 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.
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 option of the company at the then current market price, subject to the policies of the TSX Venture Exchange (TSXV).
In the event that Champion Gaming 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.
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