Company: TPET
Filing Date: 2025-02-28
Form Type: S-1/A
Source: 0001493152-25-008715
Chunk: 216

Company: Trio Petroleum Corp.
Filing Date: 2025-02-28
Form: S-1/A
Chunk 216
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 increase to the relative fair value is recognized as an equity issuance cost.

To assess for the change in relative fair value, the Company performed a Black Scholes Option Model calculation to quantify the fair value of the common warrants under their original terms as of the modification date using the following assumptions: a share price of $ 6.20, an exercise price of $ 24.00, an expected term of 5.0years, volatility of 137.1%, a dividend rate of 0% and a discount rate of 3.84%. The Company then performed a Black Scholes Option Model calculation to quantify the fair value of the common warrants with their new modified terms as of the modification date using the following assumptions: a share price of $ 6.20, an exercise price of $ 10.00, an expected term of 5.0years, volatility of 137.1%, a dividend rate of 0% and a discount rate of 3.84%. The aggregate difference of approximately $ 0.1million between the two calculated amounts was recorded as an equity issuance cost within equity during the period to account for the change in relative fair value.

On January 2, 2024, the second tranche of the October 2023 SPA was funded, and the Company recorded gross proceeds of approximately $ 550,000, a 7% original issue discount of $ 38,500and debt issuance costs of $ 90,978, for net proceeds of approximately $ 421,000. The Company also issued warrants to purchase up to 22,279shares of common stock with an aggregate relative fair value of $ 98,708; the factors used to determine fair value were a share price of $ 6.40, an exercise price of $ 10.00, an expected term of 5years, annualized volatility of 137.10%, a dividend rate of zeropercent and a discount rate of 3.93%.

| F-19 |

On February 1, 2024, February 16, 2024, March 22, 2024 and April 2, 2024, the Company made principal payments towards the first tranche in the amounts of $ 625,000, $ 125,000, $ 125,000, and $ 750,000, respectively, which it converted into shares at 103% for conversion amounts of $ 643,750, $ 128,750, $ 128,750and