TORONTO, December 2, 2020 / CNW / – Engine Media Holdings, Inc. (TSX-V: GAME) (OTCQB: MLLLF) (“Engine media“or the”Society“) announces that its wholly owned subsidiaries Frankly Media LLC and Frankly Inc. have amended the existing secured credit facility (as amended, the”EB loan“) with the arm’s length lender EB Acquisition Company, LLC (the”Lender“), as part of the advance of a supplement US $ 1 million under the EB Loan, convertible at the option of the Lender, at a conversion price per share of $ 11.25 (the “Conversion sharesThe credit limit for the US $ 5 million EB loan is now fully utilized.
As part of the amendment, the maturity date of the EB loan has been extended by January 5, 2021 up to January 5, 2022. In addition, the Company has guaranteed the obligations under the EB Loan and has provided a security in favor of the Lender over the assets of the Company. In consideration for the extension of the maturity date, the Company has agreed to issue to the lender a total of 6,666 ordinary shares of the capital of the Company at a deemed price per share equal to US $ 5.77 (the “Free actions“) and modification fees US $ 100,000 which is part of the principal delinquency of the EB loan. Free Shares which may be issued will be subject to a holding period expiring four months and one day following the date of issue, as well as transfer restrictions under United States securities laws.
The modification of the EB loan and the issuance of conversion shares and bonus shares have been conditionally approved by the TSX Venture Exchange (the “TSXV“), in accordance with its policies regarding private placements and loans, bonuses, finder’s fees and commissions, respectively. In the event that interest payable under the EB loan must be converted in the future, this The conversion will be subject to TSXV approval in accordance with its debt equity policies. The Company expects TSXV to give final approval for the above transactions in due course.
About Engine Media Holdings, Inc.
Engine Media is focused on accelerating new live and immersive esports and interactive gaming experiences for consumers through its partnerships with traditional and emerging media companies. The Company was formed by the combination of Torque Esports Corp., Frankly Inc. and WinView, Inc. and is listed on the stock exchange under the ticker symbol (TSX-V: GAME) (OTCQB: MLLLF). Engine Media will generate revenue through a combination of direct consumer fees and subscriptions; streaming technology and SaaS data offerings; programmatic advertising and sponsorships; as well as intellectual property license rights. To date, the combined companies have served customers of more than 1,200 television, print and radio brands, including CNN, ESPN, Discovery / Eurosport, Fox, Vice, Newsweek and Cumulus; dozens of game and tech companies, including EA, Activision, Blizzard, Take 2 Interactive, Microsoft, Google, Twitch, and Ubisoft; and have connectivity to hundreds of millions of homes around the world through their content, distribution and technology.
Caution regarding forward-looking information
This press release contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “l ‘intention’, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or state that certain actions, events or results “could”, “could”, “would be”, ” could ”or“ would ”be taken, occur or be achieved. Forward-looking information contained in this press release includes, without limitation, statements regarding Engine Media’s obligations under the EB Loan and the Company’s business and its anticipated sources of income. In making the forward-looking information contained in this press release, the management of the Company has made assumptions that it considers reasonable under the circumstances, including assumptions regarding the ability of the Company to meet its obligations under the EB loan as well as assumptions regarding the Company’s outlook and business strategy. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Engine Media’s actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by forward-looking information. Actual results could differ materially from those currently expected due to a number of factors and risks, including risks related to general market conditions, competition, credit risk and other factors. Therefore, readers should not place undue reliance on the forward-looking information contained in this press release. The forward-looking information contained in this press release is made as of the date of this press release and, the Company assumes no obligation to update or revise the forward-looking information, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Engine Media Holdings, Inc.
For more information: Paul Ryan, [email protected] 678-644-0404; or Lou Schwartz, CEO [email protected]