Company: TPET
Filing Date: 2025-06-03
Form Type: PRE 14A
Source: 0001641172-25-013496
Chunk: 12

Company: Trio Petroleum Corp.
Filing Date: 2025-06-03
Form: PRE 14A
Chunk 12
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 such amendment, which is incorporated herein by reference.

Background

As of June 2, 2025, the Record Date, we have
500,000,000 shares of authorized common stock. As of June 2, 2025, there were approximately 7,522,499 shares of our common stock
issued and outstanding. In addition, as of June 2, 2025, there were up to 171,994 shares of common stock issuable upon the exercise of
outstanding warrants at a weighted exercise price of $13.52 per share; up to 6,000 shares of common stock issuable upon the exercise
of outstanding options awarded under our 2022 Plan at a weighted exercise price of $10.46 per share; up to 173,751 shares of common stock
issuable upon the vesting of restricted stock units; 62,750 shares of common stock available for future grants of awards under
our 2022 Incentive Plan; and 1,485,294 shares of common stock issuable upon the conversion of currently outstanding convertible notes.

Reasons for the Reduction in Authorized Shares of Common Stock

At the Company’s 2024 annual meeting of stockholders held on August 15, 2024 (the “2024 Annual Meeting”), the Company’s stockholders approved an amendment to our Certificate of Incorporation to effect a reverse stock split of the Company’s common stock at a ratio ranging from one-for-five to one-for-twenty, with such ratio to be determined by the Board of Directors in its discretion without further approval from the Company’s stockholders. The Board of Directors subsequently authorized proceeding with a reverse stock split at a ratio of one-for-twenty.

On November 14, 2024, we effected a reverse stock split of the Company’s common stock at a ratio of one-for-twenty (the “Reverse Stock Split”). As a result, the number of our outstanding shares of common stock and the number of shares of our common stock that may be issued from equity awards or upon exercise of warrants was significantly reduced. Therefore, our Board of Directors believes that a reduction of the authorized shares of common stock to 150,000,000 shares is sufficient to support the Company’s ongoing efforts to raise capital to fund its operations for the foreseeable future. Additionally, we may be able to experience cost savings by reducing fees to the State of Delaware based on the number of currently authorized shares of common stock, since Delaware computes annual franchise taxes payable by the Company based