Simplicity Esports and Gaming Company announced that it has entered into a securities purchase agreement with 1800 Diagonal Lending, LLC to issue a convertible promissory note in the principal amount of $64,250 on June 13, 2023. The note bears interest at 10% per annum and becomes due on June 13, 2024. The note may not be prepaid before maturity, and bears a default interest rate of twenty-two percent in the event of default on behalf of the company, or until the principal and interest are paid, after the maturity date.

According to the terms of the note, the lender may convert, at any time while the note is outstanding, any part of the outstanding and unpaid balance of the note into common stock of the company. The issuances of the note is exempt from registration under Section 4(a)(2) of the Securities Act of 1933.