Company: TPET
Filing Date: 2025-04-15
Form Type: 10-K/A
Source: 0001641172-25-004910
Chunk: 140

Company: Trio Petroleum Corp.
Filing Date: 2025-04-15
Form: 10-K/A
Chunk 140
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 fund amounts of $ 2.0million and $ 1.5million, respectively.

In consideration for the investor’s funding of the first tranche, the Company issued i) a senior secured convertible promissory note in the aggregate principal amount of $ 2,000,000(the “Note”) and ii) a warrant to purchase up to 43,336shares of Common Stock at an initial exercise price of $ 24.00per share of Common Stock, subject to certain adjustments (the “Common Warrant”). The Note was initially convertible into shares of Common Stock at conversion price of $ 24.00, subject to certain adjustments (the “Conversion Price”), provided that the Conversion Price shall not be reduced below $ 7.00(the “Floor Price”). The Note did not bear any interest and matured on April 4, 2025.

Upon the initial funding on October 4, 2023, the Company recorded gross proceeds of approximately $ 2.0million, a 7% original issue discount of $ 140,000and debt issuance costs of $ 350,320, for net proceeds of approximately $ 1.5million. The Company also issued a warrant to purchase up to 43,336shares of common stock with an aggregate relative fair value of $ 332,630; the factors used to determine fair value were a share price of $ 11.00, an exercise price of $ 24.00, an expected term of 5years, annualized volatility of 137.10%, a dividend rate of zeropercent and a discount rate of 4.72%.

On December 18, 2023, December 29, 2023 and January 12, 2024, the Company made principal payments towards the first tranche in the amounts of $ 125,000, $ 125,000, and $ 125,000, respectively, which it converted into shares at 103% for conversion amounts of $ 128,750, $ 128,750and $ 128,750, respectively. Conversion shares were issued numbering 18,393, 18,393and 18,393, respectively, at fair values per share of $ 6.80, $ 6.20and $ 5.80, respectively, for total amounts of $ 125,072, $ 114,036and $ 105,575, with cash payments of $ 36,698, $ 35,837and $