GameOn intends to use proceeds from the loan to support general working capital purposes. As per the terms agreed, the loan will bear interest at a non-compounding rate of 14% per annum, payable in arrears every month.
The loan will mature on the 18th month anniversary of the closing date and will be secured against the company’s monthly recurring revenue from its assets and contracts.
Additionally, per Proje's loan terms, GameOn has issued 5,683,533 common share purchase warrants of the company, each exercisable to acquire one common share of the Company at any time until 5 July 2024 at an exercise price per Bonus Warrant of $0.06, subject to certain conditions.
GameOn CEO Matt Bailey said: “This strategic partnership with Proje sets us up to survive the current market conditions and thrive beyond that. The cash injection and booked revenue scheduled to go live in Q3, Q4 and next year, has us on track for self-sustainability and profitability in 2023.”
In Q1 2022, GameOn reported $207,151 in revenue, a rise from $2,791 in Q1 2021. Company management thinks GameOn is on track to achieve $1m in revenue in 2022, not including income from revenue share agreements.
