Company: IPSI
Filing Date: 2025-01-28
Form Type: 8-K
Source: 0001376474-25-000117
Chunk: 1

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-01-28
Form: 8-K
Item: Item 1.01
Chunk 1
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 the Applicable Per Share Portion (as defined in the Merger Agreement) of the Merger Consideration (as defined below) had such share of Business Warrior Preferred Stock been converted into shares of Business Warrior Common Stock immediately prior to the Effective Time and (iii) any other options, warrants or rights to subscribe for or purchase any capital stock of Business Warrior or securities convertible into or exchangeable for, or that otherwise confer on the holder any right to acquire any capital stock of Business Warrior, if not exercised or converted prior to the Effective Time, shall be cancelled, retired and terminated.

Merger Consideration

Pursuant to the terms of the Merger Agreement, the consideration to be delivered to the holders of Business Warrior Common Stock and Business Warrior Preferred Stock in connection with the Merger (the “ Merger Consideration") will be a number of newly issued shares of IPSI Common Stock representing forty-five percent (45%) of the IPSI Common Stock outstanding immediately following the Closing, and after giving effect to the conversion, exercise or cancellation of the Business Warrior Preferred Stock and other Business Warrior securities referred to above.

Representations and Warranties

The Merger Agreement contains representations and warranties of each of IPSI, Merger Sub and Business Warrior that are customary for similar transactions and that include certain qualifications and customary exceptions, as applicable. Additionally, many of the representations and warranties are qualified by specified exceptions or qualifications contained in the Merger Agreement, by information provided pursuant to certain disclosure schedules to the Merger Agreement, or by reference to materiality, Material Adverse Effect, or similar qualifiers. “ Material Adverse Effect” as used in the Merger Agreement means with respect to IPSI or Business Warrior, any change or effect that is or would reasonably be expected to be materially adverse to (i) the business, operations, results of operations or financial condition of such or Business Warrior, as applicable, and its subsidiaries taken as a whole or (ii) the ability of IPSI or Business Warrior to timely consummate the Transactions.

No Survival or Indemnification

None of the party’s representations, warranties or pre-Closing covenants will survive Closing and no party has any post-Closing indemnification obligations.

Covenants of the Parties

The Merger Agreement includes customary covenants of the parties with respect to, among others things, (i) operation of their respective businesses prior to consummation of the Merger and efforts to satisfy conditions to consummation of the Merger, (ii) access to information