Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 95

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 95
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 a fixed annual rate of 15%, PIK calculated on the outstanding principal balance. The Bridge Loans mature one year
from their respective issuance dates and are subject to mandatory early redemption upon the consummation of a qualifying business combination,
such as the Merger. In such an event, all accrued and unaccrued interest becomes immediately due and payable on the 30 day
following the completion of the qualifying transaction.

During May 2025 and June 2025, we entered
into the Bridge Loan Conversion. Such Bridge Loan Conversion agreements were further amended in August 2025. If the Bridge Loan Conversion
happens at the time of the Merger, the shares will be priced at $7.00 each. If the Merger does not occur by April 30, 2026, the Bridge
Loan Conversion price will instead be based on a valuation of $100,000,000 divided by the fully diluted equity of Terra. If the Merger
is successful, the shares will be issued by Terra Innovatum Global; if not, they will be issued by Terra or its parent company. If the
Merger is completed, Terra is released from its obligations, and Terra Innovatum Global assumes them. If the Merger is not completed,
the lenders are also entitled to a liquidation preference for shares received upon conversion, receiving either 150% of the conversion
price or a pro rata share of the liquidation proceeds, whichever is greater.

Following the closing of the Merger, the lenders
will be issued (i) warrants to purchase at an exercise price of $11.50 per share the number of Terra Ordinary Shares equal to 100% of
the number of Terra Ordinary Shares into which the applicable Bridge Loan will convert into at Closing and (ii) warrants to purchase at
an exercise price of $15.00 per share the number of Terra Ordinary Shares equal to 100% of the number of Terra Ordinary Shares into which
the applicable Bridge Loan will convert into at Closing.

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We incurred a total debt discount of $2,518,607
for the Bridge Loans as a result of issuance costs and the allocation of proceeds to the warrants that will be issued following consummation
of the Merger, which is being amortized over the term of the loans using the effective interest method. The effective interest rates on
the Bridge Loans range from 22.72% to 153.73%. The weighted average interest rate as of June