Champion Gaming Group Inc. announced that it has entered into secured promissory notes with arm's length creditors to the company of an aggregate principal amount of CAD 800,000 on July 28, 2022. The promissory notes are secured by a general security agreement over the assets of the company and will mature on August 3, 2024. In connection with the promissory notes, the company will issue an aggregate of 1,600,000 common shares of the company, representing 20% of the loan amount divided by the market price at a deemed price of CAD 0.10 per common share as a loan bonus.

All common shares issued in connection with the promissory notes 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. interest on the outstanding principal amount of the promissory notes will accrue from the original date of issue 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 TSXV.

Closing of the promissory notes is subject to receipt of all necessary corporate and regulatory approvals, including the approval of TSXV.