Extends Forbearance Through June 2025
Defers Monthly Cash Interest Expense
Increases Revolving Loan Capacity to $4,000,000
LAS VEGAS, NV / ACCESSWIRE / October 2, 2023 / EBET, Inc. ("EBET" or the "Company") (NASDAQ:EBET), a global online i-gaming casino website operator, today announced that it 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, LLC ("CPBF"), its lender (together, the "Amended Credit Agreements").
The Amended Credit Agreements allow EBET to convert all interest expense from current cash pay to pay-in-kind additions to principal (PIK) 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 (inclusive of PIK on the Revolving Loan). 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.
EBET operates and develops i-gaming wagering products for bettors around the world. The Company is focused on bringing better i-gaming products to market in order to cater to the Millennial and Gen-Z demographics in the wagering space. EBET operates online sportsbook and casino brands Karamba, Hopa, Griffon Casino, BetTarget, Dansk777, GenerationVIP and Gogawi, active in countries around the world. The company was awarded Esport Product of the Year at the 2021 SiGMA Europe and the 2022 SiGMA Asia and SiGMA Americas Awards. Its brand Karamba received SBC's award for Innovation in Casino & Gaming Entertainment and the 2022 SiGMA Americas award for Online Casino of the Year. For more information, visit: https://ebet.gg/.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Act, and Section 21E of the Securities Exchange Act of 1934, as amended, and Private Securities Litigation Reform Act, as amended, including those relating to the Company's ability to complete any strategic alternatives and other statements that are predictive in nature. These statements relate to future events, future expectations, plans and prospects. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," "predict," "project," "should," "would" and similar expressions and the negatives of those terms. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, actual results or outcomes may prove to be materially different from the expectations expressed or implied by such forward-looking statements. Meaningful factors that could cause actual results to differ include, but are not limited to, whether we will have adequate financial resources to enable us to pursue our business successfully; given that we will likely need more financial resources than the additional resources and flexibility provided by CPBF.These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed in the Company's filings with the Securities and Exchange Commission, including as set forth in Item 1A. "Risk Factors" in the Company's most recently filed Form 10-K filed with the Securities and Exchange Commission and updated from time to time in its Form 10-Q filings and in its other public filings with the SEC. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
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SOURCE: EBET, Inc.
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