Company: ABTC
Filing Date: 2025-07-29
Form Type: S-4/A
Source: 0001213900-25-068715
Chunk: 514

Company: American Bitcoin Corp.
Filing Date: 2025-07-29
Form: S-4/A
Chunk 514
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 (the “Conversion Right”). The Conversion Right is available at any time during the one -monthperiod (the “Conversion Period”) after which the market capitalization of the Company for the first time exceeds $ 125,000,000for five consecutive days. The conversion price is equal to $ 150,000,000divided by the number of shares of Company common stock outstanding immediately prior to the lender’s exercise of the Conversion Right during the Conversion Period. As consideration for the Amendment, the Company agreed to make a one -timepayment of 173.17bitcoins, which had a fair value of approximately $ 4,856,000on the date of payment, therefore, reducing the principal balance of bitcoins from 636.81to 463.64, and a closing fee of $ 104,000, which was offset with the adjustment for the change in fair value, as defined under debt modification accounting. The Company has evaluated the Amendment in accordance with ASC 470 -50Modification and Extinguishments. The change in the interest rate from 5.0% to 6.0% caused there to be a significant change in the cashflows of the BTC Note. Also, given that the BTC Note carried on the consolidated balance sheet at fair value, any gain on loss from the extinguishment would be adjusted through the change in fair value as of September 30, 2024. On October 25, 2024 (“Exchange Date”), the Company, its direct and indirect subsidiaries, as applicable and the Lender entered into a Debt Repayment and Exchange Agreement (the “DRE Agreement”), Loan, Guaranty and Security Agreement (the “New Loan Agreement”), the Pre -fundedWarrants (as defined below) and the $ 1.50Warrants (as defined below) (collectively, the “Agreements”) to extinguish and terminate the Amended BTC Note (the “Exchange”). Pursuant to the Agreements, the following consideration was exchanged with the Lender for the settlement of the Amended BTC Note: •Approximately $ 9,117,000of the Amended BTC Note principal balance was converted into shares of the Company’s common stock (the “Shares Exchanged”), at an ascribed value of $ 1.10per share resulting in the issuance of 8,287,984shares of common stock to Lender, at a fair market value of $ 0.612per share (the quoted market price of the Company’s common stock on