FansUnite Entertainment Inc. announced that it has entered into a definitive agreement for a private placement of senior secured non-convertible debenture for gross proceeds of up to CAD 12,350,000 on September 19, 2022. The transaction will include participation from new lender, Centurion Financial Trust and certain other arms' length lenders. The commitment will become available through multiple non-revolving tranches. Any funds advanced will bear interest at a rate of 11% per year calculated and compounded monthly in arrears and payable at the beginning of each month during which any obligations are outstanding. Early repayments of funds advanced may be subject to a prepayment charge determined by the date the payment was made. The maturity date of the debenture will be three years from issuance date. Centurion Financial Trust will have a right to cancel any remaining undrawn balance of the commitment after the first anniversary of the debenture. If canceled, any portion of the commitment which remains undrawn is terminated and fully canceled.

The company will receive up to a maximum of CAD 8,233,000 in its first tranche. Remaining funds may be advanced by way of multiple drawdowns up to a maximum amount of CAD 4,117,000. The company will also issue warrants based on the funds made available in future tranches. The debenture is secured by certain assets of American Affiliate Co. LLC, the company, and other guarantors, being certain subsidiaries of the company. In consideration for the commitment, the company will issue certain non-transferable warrants to the lenders.

On the same day the company issued 14,701,785 common share purchase warrants. Each warrant will entitle to purchase one common share of the company at an exercise price of CAD 0.14 per share for a period of three years from the date of issuance. Issuance of the warrants is subject to final approval from Toronto Stock Exchange. The warrants will be subject to a four month and one day hold period as of the date of issuance.