Company: NKLR
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111171
Chunk: 15

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 on a valuation of $100,000 divided by the fully diluted equity of Terra Innovatum Global, Srl.
If the Merger is successful, the shares will be issued by the Company; if not, they will be issued by Terra Innovatum, Srl. or its parent
company. If the Merger is completed, Terra Innovatum, Srl. is released from its obligations, and the Company assumes them. The lender
is 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.

In August 2025, we amended
our Bridge Loan agreements. The liquidation preference in each agreement was modified to apply only upon termination of the Merger and
entitles lenders to the greater of 150% of the conversion price, as defined, or a pro rata share of the equity issuer’s assets based
on their ownership percentage. Upon consummation of the Merger, the liquidation preference will terminate. The amendment defines the coverage
amount as 100% of the total number of shares issued upon conversion. Following the Merger, lenders will receive two sets of warrants to
subscribe to a number of ordinary shares of the Company equal to the coverage amount, priced at $11.50 and $15.00 per share respectively.
These warrants are exercisable within 36 months and do not include anti-dilution rights. Additionally, lenders are obligated to use
their best efforts to actively support PIPE fundraising efforts and will earn a 3% commission on the funds raised through their efforts,
payable in cash or ordinary shares of Terra Innovatum Global N.V.(see “Note 13 – Subsequent Events) at the applicable conversion
price if the Merger is consummated.

Following the closing of the
Merger, the lenders will be issued Company warrants (also see Note 10 — Quotaholders’ Deficit). The issuance of certain
of these warrants was contingent upon meeting funding thresholds specified within those Bridge Loan agreements on June 6, 2025.

The Company incurred a total
debt discount of $2,870 for the Bridge Loans as a result of the allocation of proceeds to the warrants that will be issued following
consummation of the Merger, and we incurred total debt issuance costs of $14 which are being amortized over the term of the loans using
the effective interest method. The effective interest rates on the