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Secures Non-Convertible Secured Note of $1.42 Million and a Restructuring of the Existing Preferred Stock
St. Julian’s, Malta, March 13, 2024 (GLOBE NEWSWIRE) — Esports Entertainment Group, Inc. (OTC Pink: GMBL) (OTC Pink: GMBLP) (OTC Pink: GMBLW) (OTC Pink: GMBLZ) (“Esports Entertainment”, “EEG”, or the “Company”), a number one, international iGaming firm and business-to-business (B2B) esports content material and options supplier, as we speak introduced it has entered right into a notice buy settlement, dated March 7, 2024, with the holder (the “Holder”) of its Series C Convertible Preferred Stock and Series D Convertible Preferred Stock, pursuant to which the Company issued the Holder a secured promissory notice (the “Secured Note”) for about $1.42 million in money and sure amendments to the phrases of the Series C Convertible Preferred Stock and Series Convertible D Preferred Stock, repayable in 2 years with an rate of interest of 10% every year recorded in-kind by including the quantity of accrued curiosity to the excellent principal stability of the Secured Note on the final Business Day of every calendar quarter.
The amendments to the Series C Convertible Preferred Stock and the Series D Convertible Preferred Stock Certificate of Designations embrace a six month standstill on sure conversions, limits to conversions thereafter, freeze on dividends for 2 years by way of the brand new maturity date of March 7, 2026, and an allowance for the Company to boost as much as $10 million that may very well be used for different operational functions and never for compensation of the popular inventory.
Alex Igelman, CEO of Esports Entertainment Group, said, “I am also pleased to report that we have recently received an infusion of non-dilutive, non-convertible debt financing, which we feel is a strong validation of our underlying vision for the future of the Company. At the moment, we are firmly focused on continuing to reduce corporate expenses while simultaneously driving growth and profitability. The Secured Note provides us greater financial flexibility, as we continue to reduce costs, improve our balance sheet, enhance our cash flow, and execute on our growth initiatives within the iGaming, venue management and e-simulator markets. We also successfully restructured the existing preferred stock by implementing a six-month standstill on certain conversions and resale of shares of common stock in relation thereof, which we believe illustrates confidence in the management team and the long-term outlook for the business.”
About Esports Entertainment Group
Esports Entertainment Group is a world MGA-licensed, “esports-focused” iGaming B2C operator and a US-focused B2B supplier of esports options. The Company owns and operates the world’s main esport venue administration system, at present deployed in over 1000 international areas, together with greater than 200 faculties and universities. The Company’s technique is to capitalize on the multi-billion-dollar marketplace for esports and esports wagering by leveraging its main place within the trade. The Company can also be concentrating on the quickly rising marketplace for short-form esports wagerable content material, which options aggressive, short-cycle head-to-head leagues which can be optimized for betting. In addition to its plans to distribute esports content material, the Company at present gives B2C-focused wagering by way of its MGA-licensed suite of manufacturers. For further details about the Company, please go to www.esportsentertainmentgroup.com.
Forward-Looking Statements
The data contained herein contains forward-looking statements, as outlined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements usually might be recognized by phrases resembling “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will be,” “will continue,” “will likely result,” and related expressions. These statements relate to future occasions or to our methods, focused markets, and future monetary efficiency, and contain identified and unknown dangers, uncertainties and different elements that will trigger our precise outcomes, ranges of exercise, efficiency, or achievements to be materially completely different from any future outcomes, ranges of exercise, efficiency or achievements expressed or implied by these forward-looking statements. You mustn’t place undue reliance on forward-looking statements since they contain identified and unknown dangers, uncertainties and different elements that are, in some circumstances, past our management and which may, and sure will, materially have an effect on precise outcomes, ranges of exercise, efficiency or achievements. Factors that would trigger or contribute to such variations embrace, however usually are not restricted to, these mentioned in our most up-to-date Annual Report on Form 10-Ok and subsequent Quarterly Reports on Form 10-Q, and people mentioned in different paperwork we file with the SEC together with, the timing of deregistration of our securities, the timing of our itemizing on the OTCQB® Venture Market of the OTCMarkets, our obligations underneath our excellent most popular inventory, as amended, the settlement settlement with the holder of our Series C Preferred Stock and Series D Preferred Stock, and our skill to proceed as a going concern. Any forward-looking assertion displays our present views with respect to future occasions and is topic to those and different dangers, uncertainties and assumptions regarding our operations, outcomes of operations, development technique and liquidity. We assume no obligation to publicly replace or revise these forward-looking statements for any purpose, or to replace the explanations precise outcomes may differ materially from these anticipated in these forward-looking statements, even when new data turns into accessible sooner or later, until required by legislation. The secure harbor for forward-looking statements contained within the Private Securities Litigation Reform Act of 1995 protects firms from legal responsibility for his or her forward-looking statements in the event that they adjust to the necessities of such Act.
Contact:
Tel: 356 2713 1276
Email: ir@esportsentertainmentgroup.com
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