Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 176

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 176
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 Convertible Note with an
initial principal amount of $5,555,000 (the “Hudson Note”) at a conversion price of $6.245 per share of the
Company’s common stock, and a warrant (the “Hudson Warrant”) to
purchase up to 889,512 shares of Common Stock with an initial exercise price of $6.245 per share of Common Stock (the “Private
Placement”). The purchase price of the Hudson Note and the Hudson Warrant is $5 million.

The entire
outstanding principal balance on the Hudson Note and any outstanding fees or interest was due and payable in full on January 15,
2024 (“Maturity Date”). The Hudson Note did not bear interest, provided, however, that the Hudson Note would bear
interest at 18% per annum upon the occurrence of an event of default. The Hudson Note was paid in full on February 26, 2024.
Additionally, the Company redeemed all of the Hudson Warrants for $660,000 on October 23, 2023. Palladium Capital Group, LLC acted
as placement agent for the Private Placement. For the acting as placement agent in the Private Placement, the Placement Agent
received (i) cash compensation of $400,000 (8% of the gross proceeds to the Company) and (ii) a warrant to purchase up to 71,161
shares of Common Stock (8% of the shares of Common Stock underlying the Hudson Note).

The Company repaid the full amount under the Hudson Note and redeemed the Hudson Warrant in 2024. See “Note
16 – Convertible Note Payable” in the accompanying financial statements for further information.

29

Forever
8 Acquisition

On
September 14, 2022, the Company entered into a Membership Interest Purchase Agreement (the “Purchase Agreement”) by and among
the Company, Forever 8 and the former members of Forever 8 (the “Sellers”) pursuant to which Eightco was to acquire 100% of the issued and outstanding membership interests
of Forever 8 (the “Membership Interests”) from the Sellers (the “Acquisition”). On October 1, 2022, the closing
of the acquisition occurred (the “Closing”).

Pursuant
to the Purchase Agreement, the Sellers received consideration consisting of (i) the Initial Base Preferred Units, subject to adjustments
discussed below, (ii) the Promissory Notes, and (iii) the right to receive potential