Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 28

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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acor Acquisition to be closed in two closings. The first closing of the Novacor Acquisition was consummated on
April 8, 2025 (the “First Closing”). At the First Closing, title to certain of the Novacor Assets was delivered to Trio Canada
and the Company delivered to Novacor (i) US$260,000, in cash, reflecting the US$325,000 payable for those Assets, less the US$65,000
deposit previously paid by us to Novacor and (ii) the 526,536 shares of common stock. The APA further provides for the second closing
of the Novacor Acquisition (“Second Closing”) for the sale of the remaining Assets to take place, subject to the satisfaction
or waiver of the applicable closing conditions provided in the APA, including delivery of the applicable deliverables, on the later of
(i) May 15, 2025 and (ii) three business days following the date that Novacor has provided written notice to Trio Canada that the right
of first refusal with respect the remaining Assets as described in Schedule of the APA has expired or been waived.

The
Company has accounted for this transaction as an asset acquisition in accordance with ASC 805 – Business Combinations. As a result,
an asset has been recorded on the balance sheet totaling $1,406,081. This amount comprises the following components: a cash payment of
$333,400, which includes a capitalizable Canadian Provincial Sales Tax (“PST”) of $8,400, the issuance of 526,536 common
shares, valued at $1.42 per share, for a total equity consideration of $747,681, and a deferred consideration payable of $325,000, scheduled
for payment upon the second closing.

Following
the closings, (i) operating costs for the Novacor Assets will for a period of two (2) years, be held at the levels detailed in the auditor’s
report over the eighteen (18) month period prior to the closings, unless otherwise mutually agreed to by the parties (ii) after such
two-year period, operating costs will remain competitive with other operators in the area; and (iii) Trio Canada may terminate the Novacor’s
post-closings actions at any time on 30 days’ prior written notice to Novacor. After the closings, Novacor will act as the on-site
operator of the Novacor Assets and perform all