Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 859

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 2
Chunk 859
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 institutional investors (the “April 2024 Investors”) provided an aggregate of $720,000 in financing on April
17, 2024 and April 24, 2024 (the “April 2024 Financings’) resulting in net proceeds to the Company, after offering expenses,
of $664,000. The Company also issued to the April 2024 Investors an aggregate of 75,000 shares of common stock, as and for a commitment
fee in connection with the April 2024 Financings (the “Commitment Shares”). The commitment shares were issued separately
in two amounts of 37,500 common shares at fair values of $9.80 per share and $8.00 per share for values totaling $366,000 and $301,500,
respectively; such amounts are debt issuance costs and were recorded as debt discounts to be amortized over the life of the agreement.

Pursuant
to the provisions of the A&R SPA, the Company granted “piggy-back registration rights” to the April 2024 Investors for
the registration for resale of the Commitment Shares and the Conversion Shares (defined hereafter). Additionally, until 18 months after
the later of (i) August 16, 2024 or the full repayment of the April 2024 Investors Notes (defined hereafter), the Company provided the
April 2024 Investors with the right to jointly participate in future financings in an amount up to 100% of any debt financing and up
to 45% of any other type of financing. Further, the Company is prohibited from entering into any variable rate transactions for as long
as the April 2024 Investors hold any of the Commitment Shares; provided, however, that the Company is permitted to enter into At-the-Market
offerings with a nationally recognized broker-dealer. The Company has also agreed to use commercially reasonable efforts to consummate
a reverse stock split of its shares of common stock, in the event that it is required in order to maintain the listing of its common
stock on the NYSE American.

In
connection with the April 2024 Financings, the Company issued Senior Secured Convertible Promissory Notes to the April 2024 Investors
in the aggregate principal amount of $800,000 (the “April 2024 Investors Notes”), having an aggregate original issue discount
of $80,000, or 10% of the aggregate principal amount of the April Notes. There is no