Simplicity Esports and Gaming Company announced that it has entered into securities purchase agreement for a private placement of 12% promissory convertible note for aggregate gross proceeds of $1,00,000 with returning investors Ionic Ventures, LLC, Jefferson Street Capital LLC, FirstFire Capital Management LLC and GS Capital Partners LLC on July 14, 2022. The company issued each investor 12% promissory convertible note of principal amount of $27,500 which carries an original issue discount of $2,500. In addition, the company issued 935 shares of its common stock to each investor as a commitment fee and to pay interest on the principal balance at the rate of 12% per annum.

The notes are convertible at a conversion price of $0.10 per share. The company also issued to each investor a three-year warrant to purchase 50,000 shares of the company's common stock at an exercise price of $1 per share. The notes with mature on September 14, 2022.