Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 160

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 160
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 expenses, of $676,200. In consideration of the June 2024 Investors’ funding under the June 2024 SPA,
on June 27, 2024, the Company issued and sold to each June 2024 Investor: (A) a Senior Secured 10% Original Issue Discount Convertible
Promissory Note in the aggregate principal amount of $400,000 (the “June 2024 Notes”) and (B) a warrant to purchase 37,231
shares (the “June 2024 Warrant Shares”) of the company’s Common Stock, at an initial exercise price of $7.90500 per
share of Common Stock, subject to certain adjustments (the “June 2024 Warrants”). 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 were a share price of $6.00, an exercise price of $7.90500, an expected term of 5 years, annualized
volatility of 132.52%, a dividend rate of zero percent and a discount rate of 4.29%.

    19

The
June 2024 Notes are initially convertible into shares of Common Stock (the “June 2024 Conversion Shares”) at a conversion
price of $7.90500 per share, subject to certain adjustments (the “June 2024 Notes Conversion Price”), provided that the June
2024 Conversion Price shall not be reduced below $2.40 (the “June 2024 Floor Price”), and provided further that, subject
to the applicable rules of the NYSE American, the Company may lower the June 2024 Floor Price at any time upon written notice to the
June 2024 Investors. The June 2024 Notes do not bear any interest, except in the case of an Event of Default (as such term is defined
in the June 2024 Notes), and the June 2024 Notes mature on June 27, 2025. Upon the occurrence of any Event of Default, interest shall
accrue on the June 2024 Notes at a rate equal to 10% per annum or, if less, the highest amount permitted by law.

Commencing
on the 90th day following the original issue date of the June 2024 Notes, the Company is required to pay to