Champion Gaming Group Inc. announced a non-brokered private placement of up to 800 secured convertible promissory notes at a price of CAD 1,000 per note for gross proceeds of up to CAD 800,000 on July 15, 2022. The maturity date of the notes will be 24 months from the closing date. The holders of the notes will have the right, from time to time and at any time on or prior to the maturity date, to convert all or any portion of the outstanding principal amount into common shares of the company, at a conversion price of CAD 0.20 per common share.

The notes will be secured by a general security agreement over assets of the company. Interest on the outstanding principal amount of the notes will accrue from the original date of issue of the notes at a rate of 15% per annum until the maturity date. Interest will be payable quarterly, in cash or common shares at the option of the company at the then current market price of the common shares, subject to the policies of the TSX Venture Exchange.

The holders of the notes will also receive such number of common shares as a loan bonus in connection with the issuance of the notes, such number of common shares will represent 20% of the principal amount of the notes divided by the market price. Closing of the offering is subject to receipt of all necessary corporate and regulatory approvals, including the approval of TSXV. All securities issued in connection with the offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation.