Engine Gaming Announces Shares for Debt Settlement

Rhea-AI Summary

Engine Gaming and Media, Inc. (NASDAQ:GAME) announced shares for debt agreements amounting to US$305,137. The Company will issue 200,000 Common Shares at a price of US$1.525 each to settle debts on unsecured convertible debentures. Additionally, 100,000 Common Shares will be issued to resolve an outstanding litigation matter. Both transactions are pending acceptance by the TSX Venture Exchange. The issued Common Shares will have a hold period of over four months. Engine Gaming specializes in live streaming data, social analytics, and programmatic advertising for major video gaming and media companies.

Positive

• Settlement of US$305,137 in debt, improving balance sheet.
• Issuing shares to resolve litigation, reducing potential legal liabilities.

Negative

• Issuance of 300,000 shares may dilute existing shareholder value.
• Dependence on external funding may indicate liquidity challenges.

NEW YORK, NY / ACCESSWIRE / February 15, 2023 / Engine Gaming and Media, Inc. (GAME) ("Engine" or the "Company") (NASDAQ:GAME)(TSXV:GAME) announces it has entered into shares for debt agreements.

The Company has agreed to settle US$305,137 related to the principal amount and accrued but unpaid portions of the interest payments outstanding under certain unsecured convertible debentures of the Company. An aggregate of 200,000 Common Shares at a deemed price of US$1.525 (CDN$2.04) per Common Share are proposed to be issued to the arm's length creditor. The Common Shares will be issued upon acceptance by the TSX Venture Exchange (the "TSXV").

The Company has also agreed to issue 100,000 common shares to fully settle an outstanding litigation matter with an arm's length party. The Common Shares will be issued upon acceptance by the TSXV.

The Common Shares issued pursuant to the shares for debt transactions will be subject to a four month plus one day hold period.

About Engine Gaming and Media, Inc.

Engine Gaming and Media, Inc. (NASDAQ:GAME)(TSXV:GAME) provides unparalleled live streaming data and social analytics, influencer relationship management and monetization, and programmatic advertising to support the world's largest video gaming companies, brand marketers, ecommerce companies, media publishers and agencies to drive new streams of revenue. The company's subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; and Frankly Media, a digital publishing platform used to create, distribute, and monetize content across all digital channels. Engine Gaming generates revenue through a combination of software-as-a-service subscription fees, managed services, and programmatic advertising. For more information, please visit www.enginegaming.com.

Company Contact:

Lou Schwartz
647-725-7765

Investor Relations Contact:

Shannon Devine
MZ North America
Main: 203-741-8811
GAME@mzgroup.us

SOURCE: Engine Gaming & Media Holdings, Inc.

View source version on accesswire.com:
https://www.accesswire.com/739513/Engine-Gaming-Announces-Shares-for-Debt-Settlement

FAQ

What is the share for debt agreement announced by Engine Gaming and Media on February 15, 2023?

Engine Gaming announced it will issue 200,000 Common Shares to settle US$305,137 in debt and 100,000 Common Shares to settle litigation.

How will the agreement affect Engine Gaming's stock value (GAME)?

Issuing new shares could dilute existing shareholders' value, potentially impacting GAME's stock price.

What is the significance of the TSXV acceptance for Engine Gaming's share issuance?

The issuance of shares is conditional on acceptance by the TSX Venture Exchange, affecting the completion of the debt settlement.

What is the price per share for Engine Gaming's debt settlement?

The shares are proposed to be issued at a deemed price of US$1.525 per Common Share.

Why is Engine Gaming issuing shares to settle debt?

Issuing shares to settle debt helps the company improve its financial position by reducing liabilities without immediate cash outflow.