Jackpot Digital Inc.

  • Date: 2016-04-22

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Symbols: JP.TSX Venture Exchange JPOTF.OTC Pink LVH. Frankfurt & Berlin Stock Exchanges NEWS RELEASE Jackpot announces financing of up to $2,000,000 VANCOUVER, BRITISH COLUMBIA. April 22, 2016 – Jackpot Digital Inc. (formerly Las Vegas From Home.com Entertainment Inc.) (the “Company” or “Jackpot”) (TSX-V: JP) (US OTC Pink: JPOTF) (Frankfurt & Berlin Exchanges: LVH). Jackpot, a developer and provider of electronic table games, and a developer and licensor of iGaming mobile products which include HTML5 poker, casino and bingo games, is pleased to announce that it has entered into an engagement letter (the “Engagement”) with Kingsdale Capital Markets Inc. (“Kingsdale” or the “Agent”) to act as the Agent of the Company to raise gross proceeds of up to $2,000,000 (the “Financing”) for the Company through the sale of secured convertible debentures (“Debentures”) of the Company. The main features of the Debentures shall have a term of 12 months, shall bear simple interest at the rate of 12% per annum which shall be payable on a quarterly basis, and will have a conversion price of $0.05 per common share of the Company. The Company shall pay to the Agent a cash fee equal to 10% of the gross proceeds raised from the Financing, the Company shall grant broker warrants entitling the Agent to purchase 10% of the gross proceeds raised by the Agent in common shares of the Company exercisable at $0.05 per share the first year and at the price of $0.10 per share in the second year, as well as Advisory Broker warrants to purchase 2,000,000 common shares of the Company exercisable at the price of $0.05 per share in the first year and at the price of $0.10 per share in the second year. Kingsdale will also charge a corporate finance fee of $30,000 plus HST. The Company intends to use the proceeds raised from the Financing, less financing costs, for the following purposes: Firstly, to pay the Company’s existing Royalty Holders the approximate aggregate amount of US $533,500 for outstanding interest and royalty payments. Secondly, to pay Everi Inc. (Everi) the sum of US $500,000 to be applied towards the indebtedness owed to Everi under the Asset Purchase Agreement. and, Thirdly, to be utilized for the Company’s general working capital. This Financing shall enable the Company to significantly reduce the Company’s current financial obligations to its existing Debentureholders by reducing the current 50% of the Company’s share of net revenues payable to the Debentureholders by the Company to 2% net revenues. President and CEO Mr. Jake Kalpakian states “The substantial reduction of the royalty is a significant milestone for Jackpot as it allows the Company to retain more cash and at the same time making us more attractive to the investment community”.

Jackpot Digital Inc. (formerly Las Vegas From Home.com Entertainment Inc.) Suite 300, 570 Granville Street Vancouver, BC V6C 3P1 Tel: (604) 681-0204 Fax: (604) 681-9428 www.jackpotdigital.com [email protected]

-2The Closing of the Financing is scheduled to be completed on or about April 26, 2016. This Financing is subject to the approval of the TSX Venture Exchange. The Company’s News Release of today replaces the Brokered Private Placement Financing with Kingsdale which was announced in the Company’s News Release dated October 7, 2015. No U.S. Offering or Registration This news release does not constitute an offer to sell, or the solicitation of an offer to buy securities in any jurisdiction, including the United States. The securities offered under the Rights Offering will not be or have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state of the United States. Such securities may not be offered or sold in the United States or to, or for the account or benefit of, any U.S. Person (as defined in Regulation S of the Securities Act) or person in the United States except in transaction exempt from or not subject to the registration requirements of the Securities Act and applicable state securities laws. About Jackpot Digital Inc. (formerly Las Vegas From Home.com Entertainment Inc.) Since 1999, Jackpot has been a reputable provider of innovative gaming software offering a multitude of multiplayer games, including poker and casino, and is committed to bringing an enjoyable experience to players and delivering great results to operators. Our lengthy track record in gaming software development, financial accountability, and cardroom operations have made us one of the leading software developers in the industry. For more information on the Company, please contact Jake H. Kalpakian, President, at (604) 681-0204 ext 6105, or visit the Company’s website at www.jackpotdigital.com. On behalf of the Board of Jackpot Digital Inc. “Jake H. Kalpakian” _____________________________ Jake H. Kalpakian President & CEO Trading in the securities of the Company should be considered speculative. The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. 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 news release. This news release contains forward-looking information that involve various risks and uncertainties regarding future events. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) the inability to obtain TSX Venture Exchange approval of this transaction; ii) the inability of the Company to secure all or part of the $2 million financing and (iii) other factors beyond the Company’s control. Actual results and future events could differ materially from those anticipated in such information. Jackpot Digital Inc. (formerly Las Vegas From Home.com Entertainment Inc.) Suite 300, 570 Granville Street Vancouver, BC V6C 3P1 Tel: (604) 681-0204 Fax: (604) 681-9428 www.jackpotdigital.com [email protected]