EBET, Inc.: debt financing — EBET in default on $26.2M loan, enters forbearance; preferred conversion risk of 56M shares; strategic review

EBET, Inc.

Company acknowledged default on $30M loan (balance ~$26.2M) and entered forbearance until Sept 15, 2023.
Lender provided $2M revolving credit line at 15% interest, advances in its sole discretion.
Preferred stock conversion price cut to $0.71; 32,367 shares convertible into 56M common, doubling share count.
Board formed Strategic Alternatives Committee and hired Houlihan Lokey for sale/restructuring.
CEO and CFO retention bonuses: $175K (CEO), $240K salary increase (CFO), plus transaction bonuses.

item 1.01 item 2.03 item 3.02 item 5.02 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

EBET, Inc. incurred revolving credit of $2.0 million with CP BF Lending, LLC at 15.0% per annum maturing November 29, 2024.

Instrument: revolving credit
Principal: $2.0 million
Counterparty: CP BF Lending, LLC
Rate: 15.0% per annum
Maturity: November 29, 2024
Event: incurrence

Exact text from the filing

the Lender agreed to provide the Company with a revolving line of credit in the amount of $2.0 million (the “Revolving Note”), with any advances under the Revolving Note to be made in the sole discretion of the Lender. The Revolving Note will have a maturity date of November 29, 2024 and carry an interest rate of 15.0% per annum

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Source: SEC EDGAR

accession 0001683168-23-004619

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