Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 443

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 1
Chunk 443
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, the agreements provide
the agent with equity-classified warrants to purchase a number of common shares equal to 5% of the number of common shares initially
issuable upon conversion of each note tranche. For the first tranche, the Company issued to Spartan warrants to purchase 4,167 shares
of common stock with a fair value of $38,029; the factors used to determine fair value were a share price of $11.00, an exercise price
of $26.40, an expected term of 5 years, annualized volatility of 137.10%, a dividend rate of zero percent and a discount rate of 4.72%.
For the second tranche, the Company issued to Spartan warrants to purchase 2,750 common shares of common stock with a fair value of $14,753;
the factors used to determine fair value were a share price of $6.40, an exercise price of $11.00, an expected term of 5 years, annualized
volatility of 137.10%, a dividend rate of zero percent and a discount rate of 3.93%.

On
January 2, 2024, the second tranche of the October 2023 SPA was funded (see Note 9 for further information); in connection with this
funding, the Company issued to the investor equity warrants to purchase up to 22,279 shares 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 5 years, annualized volatility of 137.10%, a dividend rate of zero percent and a discount rate of 3.93%.

June
2024 SPA with Warrants

On
June 27, 2024, the Company entered into the June 2024 SPA with the June 2024 Investors (see Note 9 above); pursuant to the terms and
conditions of the agreement, in consideration for providing financing, the Company issued to each June 2024 Investor a warrant to purchase
37,231 shares of the Company’s common stock, at an initial exercise price of $7.90500 per share. The June 2024 Warrants (which
are for the purchase of an aggregate 74,461 common shares) were recorded as equity warrants with an aggregate relative fair value of
$257,701; the factors used to determine fair value