EBET gets loan covenant waivers until Apr 28; CMO resigns; preferred conversion adjustment dates extended

On February 1, 2023, Mark Thorne, the Company’s Chief Marketing Officer, resigned from his position and the Company has accepted such resignation which has effectively terminated his employment.

On February 1, 2023, the holders of a majority of the Preferred Stock approved an additional amendment to the terms of the Preferred Stock to amend the definition of “Exempt Issuance” to permit the issuance of up to $10.0 million in securities (excluding amounts received upon the exercise of warrants issued in connection with such securities) issued prior to April 28, 2023 in public or private offerings of Company common stock (or common stock equivalents) at a price per security that is not less than the “Minimum Price” as defined in NASDAQ Rule 5635(d) on the date of the offering, which issuances may include warrant coverage in such amounts as determined by the Company. On February 1, 2023, the Amended and Restated Certificate of Designation of Preferences, Rights and Limitations of the Series A Convertible Preferred Stock was filed in the State of Nevada.

On January 30, 2023, the holders of a majority of the Preferred Stock approved an amendment to the terms of the Preferred Stock to: (i) extend the initial Adjustment Date from January 31, 2023 to April 28, 2023; and (ii) to extend the second Adjustment Date from April 15, 2023 to July 31, 2023; and (iii) to add a third Adjustment Date of October 31, 2023. Notwithstanding the foregoing, the adjusted Preferred Conversion Price may not be less than $0.71, unless the terms of the new adjustment dates are approved by the shareholders of the Company, as required pursuant to applicable rules and regulations of NASDAQ. The Company agreed to submit for a vote the approval the terms of the new adjustment dates at its next meeting of shareholders and use its reasonable best efforts to solicit its shareholders’ approval of such vote. On January 31, 2023, the Amended and Restated Certificate of Designation of Preferences, Rights and Limitations of the Series A Convertible Preferred Stock was filed