EBET announces structral amendment, expansion of credit facility

EBET has amended its existing $30,000,000 Term Loan and increased borrowing availability by upsizing EBET‘s existing $2,000,000 discretionary Revolving Loan to $4,000,000 through a Second Amendment to Credit Agreement and an amendment to its existing Forbearance Agreement with CPBF Lending, its lender. The Amended Credit Agreements allow EBET to convert all interest expense from current cash pay to pay-in-kind additions to principal that will be due upon maturity, effectively deferring over $339,000 of monthly cash interest payments through the end of the forbearance period. The forbearance period has been extended from October 31, 2023 to June 30, 2025. The Amended Credit Agreements increase funds available to the Company under the discretionary Revolving Loan from $2,000,000 to $4,000,000. The interest rate on the Term Loan and the Revolving Loan has been increased from 15.0% to 16.5%. Outstanding principal and interest Term Loan and Revolving Loan amounts under the Amended Credit Agreements may be converted into EBET common shares at CPBF’s option at a conversion price of $1.25 per share for the initial $5.0 million of the loan amount and at a conversion price of $2.50 per share for the remainder of the loan amount, provided that CPBF may not convert any portion of the loans into EBET common shares during an initial 45-day lockup or to the extent that, after giving effect to such conversion, CPBF and its affiliates would beneficially own more than 9.99% of the then issued and outstanding EBET common shares.