Simplicity Esports and Gaming Company announced that it has entered into securities purchase agreement with returning investor FirstFire Global Opportunities Fund, LLC a fund managed by FirstFire Capital Management LLC for a private placement of a 12% convertible promissory notes for gross proceeds of $110,000 on March 21, 2022. The principal value of the notes is $110,000. The maturity date of the notes is September 21, 2022.

The notes have been issued at an original issue discount of $10,000. The notes bear a fixed interest rate of 12% per annum. The holders may convert the note into the company's common stock at any time at a conversion price equal to $1 per share.

The company issued 935 shares to FirstFire Capital Management LLC as a commitment fee pursuant to the agreement. The Company may prepay the notes at any time prior to maturity in accordance with the terms of the holders note. The company also issues a three year warrant to investors to purchase 50,000 shares at an exercise price equal to $1.