Post by
bveilleu on Dec 17, 2020 8:52pm
Jackpot closes non-brokered private placement financing
Vancouver, British Columbia – December 17, 2020 – Jackpot Digital Inc. (the “Company” or “Jackpot”) (TSX-V: JJ) (TSX-V: JJ.WT.A) (TSX-V: JJ.WT.B) (TSX-V: JJ.WT.C)(US OTCQB: JPOTF) (Frankfurt & Berlin Exchanges: LVH3). Further to the Company’s News Release dated December 2, 2020, the Company is pleased to announce that it has closed the non-brokered private placement financing whereby Jackpot raised gross proceeds of $1,000,000 and has issued 20,000,000 units of the Company at $0.05 per unit. Each Jackpot unit consists of one common share of the Company and one share purchase warrant to acquire an additional common share of the Company at the price of $0.10 until November 20, 2025 (the “Private Placement Warrants”). The Private Placement Warrants have the same terms and conditions as the warrants that were issued by the Company pursuant to the rights offering which completed on November 20, 2020 (the “Rights Offering Warrants”). Subject to the approval of the TSX Venture Exchange (the “Exchange”), the Company intends to apply for listing of the Private Placement Warrants on the Exchange, which listing will be on the same terms and conditions as the Rights Offering Warrants and will not become effective until after the statutory hold period in respect of the Private Placement Warrants has expired. All securities that have been issued in respect to this private placement are subject to a hold period expiring April 16, 2021.
The Company paid finder’s fees of $62,400 in cash and 1,248,000 broker warrants exercisable at $0.10 per share until December 15, 2022 to arm’s length parties.
The funds will be utilized towards production of the Company’s Jackpot Blitz™ electronic table game (“ETG”), software development and for general working capital.
President & CEO Mr. Jake Kalpakian states, “Like so many, we were hit hard by Covid-19, but during the past year we took the necessary steps to position the Company to capitalize on its unique product and pipeline of opportunities towards building a strong and exciting future”.
Related Party Transaction
In connection with the above closing, two insiders of the Company have subscribed for the amount of $160,000. Such participation is considered to be a related party transaction within the meaning of Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions (“MI 61- 101”). The related party transaction is exempt from minority approval, information circular and formal valuation requirements pursuant to the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the gross securities issued under the debenture financing nor the consideration paid by the insider exceeds 25% of the Company’s market capitalization.
About Jackpot Digital Inc.
Jackpot Digital Inc. is a leading electronic table games manufacturer and mobile gaming provider for the cruise ship industry and regulated casino industry. The Company specializes in multiplayer gaming products, including poker and casino games, which are complemented by a robust suite of backend tools for operators to efficiently control and optimize their gaming business.
For more information on the Company, please contact Jake H. Kalpakian, President and CEO, at (604) 681- 0204 ext 6105, or visit the Company’s website at www.jackpotdigital.com.
On behalf of the Board of
Jackpot Digital Inc.
"Jake H. Kalpakian"
_____________________________
Jake H. Kalpakian
President & CEO