Company: IPSI
Filing Date: 2025-01-28
Form Type: 8-K
Source: 0001376474-25-000117
Chunk: 3

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-01-28
Form: 8-K
Item: Item 1.01
Chunk 3
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 Series A Convertible Preferred Stock of IPSI (the “IPSI Series A Preferred”) and (ii) exchange agreements, to be entered into by and among IPSI, Business Warrior and each holder of the outstanding convertible notes of Business Warrior (the “Business Warrior Exchange Agreements"), pursuant to which each outstanding convertible note of Business Warrior will be exchanged for shares of newly-issued shares of IPSI Series A Preferred. The designation of the IPSI Series A Preferred is subject to IPSI Stockholder Approval. Further, as of the date of this Current Report, the terms of the IPSI Series A Preferred remain subject to negotiation between IPSI, Business Warrior and the holders of such convertible notes. As previously disclosed by IPSI in a Current Report on Form 8-K filed on February 26, 2024, IPSI and Business Warrior have certain convertible note holders in common.

In addition, IPSI’s obligation to consummate the Merger is conditioned upon, among other things: (i) the representations and warranties of Business Warrior being true and correct on and as of the Closing Date (as defined in the Merger Agreement) as if made on the Closing Date (subject to certain exceptions and an overall “ Material Adverse Effect” standard), (ii) Business Warrior having performed in all material respects all of its obligations and complied in all material respects with all of its agreements and covenants under the Merger Agreement to be performed or complied with by it on or prior to the Closing Date and (iii) receipt by IPSI of each Lock-Up Agreement (as defined below) and Employment Agreement (as defined in the Merger Agreement).

Business Warrior’s obligation to consummate the Merger is further conditioned upon, among other things: (i) the representations and warranties of IPSI being true and correct on and as of the Closing Date as if made on the Closing Date (subject to certain exceptions and an overall “ Material Adverse Effect” standard) and (ii) IPSI and Merger Sub having performed in all material respects all of its obligations and complied in all material respects with all of its agreements and covenants under the Merger Agreement to be performed or complied with by it on or prior to the Closing Date.

Termination

The Merger Agreement may be terminated at any time prior to the Effective Time by either IPSI or Business Warrior if the Merger and related transactions are not consummated on or before the seven-month anniversary of the date of the Merger Agreement (the “Termination Date”), provided that