Company: RILYN
Filing Date: 2025-03-04
Form Type: 8-K
Source: 0001213900-25-020254
Chunk: 3

Company: B. Riley Financial, Inc.
Filing Date: 2025-03-04
Form: 8-K
Item: Item 1.01
Chunk 3
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 and the Delayed Draw Term Loans outstanding on such date.

Representations and Warranties

The Credit Agreement contains certain representations and warranties
(subject to certain agreed qualifications) that are customary for financings of this type.

Certain Covenants

The Credit Agreement contains certain affirmative and negative covenants
customary for financings of this type that, among other things, limit the Company’s, the Borrower’s and the Borrower’s
subsidiaries’ ability to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to enter
into restrictive agreements, to make certain investments, loans, advances, guarantees and acquisitions, to prepay certain indebtedness
and to pay dividends or to make other distributions or redemptions/repurchases in respect of their respective equity interests.

In addition, the Credit Agreement contains a liquidity covenant that
requires the Company to maintain Liquidity (as defined in the Credit Agreement) of at least $50 million (or $25 million at any time that
the aggregate principal amount of Credit Facilities outstanding is less than or equal to $62.5 million).

Events of Default

The Credit Agreement contains customary events of default, including
with respect to a failure to make payments under the Credit Facilities, cross-default, certain bankruptcy and insolvency events and customary
change of control events.

The foregoing description of the Credit Agreement does not purport
to be complete and is qualified in its entirety by reference to the full text of the Credit Agreement, which is attached as Exhibit 10.1
to this Current Report on Form 8-K and incorporated herein by reference.

Warrants

In connection with the Credit Agreement, on February 26, 2025, the
Company issued to certain affiliates of Oaktree Capital Management, L. P. (the “ Holders”) warrants (the “ Warrants”)
to purchase approximately 1,832,290 shares (or 6% on a fully diluted basis) of the Company’s Common Stock at an exercise price of $5.14 per share. The Warrants contain certain anti-dilution provisions
pursuant to which, under certain circumstances, the Holders would be entitled to exercise the Warrants for up to 19.9% of the then-outstanding
shares of Common Stock.

The foregoing description of the Warrants does not purport to be complete
and is qualified in its entirety by reference to the full text of the Form of Warrant, which is attached as Exhibit 10