Esports Entertainment Group (GMBL) Enters $1.42M Secured Note Purchase Agreement

On March 13, 2024, Esports Entertainment Group (NASDAQ: GMBL) announced that it entered into an agreement, dated March 7, 2024 (the “Secured Note Purchase Agreement”) with the holder (the “Holder”) of its Series C Convertible Preferred Stock (“Series C Preferred Stock”) and Series D Convertible Preferred Stock (the “Series D Preferred Stock”), pursuant to which the Company issued the Holder a secured promissory note (the “Secured Note”), for approximately $1.42 million in cash and certain amendments to the terms of the Series C Preferred Stock and Series D Preferred Stock. The key terms of the Secured Note Agreement include:

● Security of the Secured Note balance by a first priority security interest in all of the Company’s tangible and intangible personal property;

● Accrued interest to the outstanding principal balance of the Secured Note at a rate of 10% per annum. All interest shall be quarterly in-kind by adding the amount of accrued interest to the outstanding principal balance of the Secured Note on the last Business Day of each calendar quarter;

● Maturity date of March 7, 2026;

● The Company is subject to standard terms of default, including failure to pay, breach of representations and warranties, breach of covenants and bankruptcy, with a default rate of 12%.

The Secured Note Purchase Agreement contains representations of the parties that are generally customary of this type of transaction. The Company also agreed to indemnify the Holder of the Secured Note for certain matters described in the Secured Note Purchase Agreement.

You May Also Be Interested In

• Sky Quarry names Heidi Bowman as CFO
• WiMi proposes quantum convolutional neural network for data tasks
• BJ's Wholesale Club plans new location in Tyler, Texas