Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 181

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 181
---
 the outstanding principal amount of the Seller Notes as a whole, as follows: (i) after Section 4(d) of the Amendment
Agreement is satisfied such that excess cash may be removed from the Control Account, 50% of the cash proceeds of warrants exercised
for common stock of the Eightco until an aggregate amount of $10 million in prepayments is made on the Seller Notes from such warrant
exercises, (ii) 25% of all gross proceeds received by Eightco in any and all debt and equity capital raises by the Eightco (excluding
warrant exercises) from and after the date of the Purchase Agreement and (iii) at least an aggregate of $11.5 million (including any
prepayments made pursuant to clauses (i-ii) above) within the first twelve (12) months of the issuance of the Promissory Notes.

So
long as the Eightco has received Shareholder Approval and the Threshold Date has been reached, at any time commencing after the 12-month
anniversary of the date of the Promissory Notes, the holder of the Promissory Notes may, in its sole and absolute discretion, convert
all or part of the Promissory Notes into shares of common stock of the Eightco (the “Conversion Shares”) at a per share conversion
price equal to the VWAP of a OCTO Share for the ten trading days immediately preceding the conversion notice being provided to the Eightco
by the holder of the Promissory Notes (the “Conversion Price”), with the Conversion Price being subject to a conversion price
floor of $2.00 per share of common stock. If the VWAP is less than $2.00 and the holder converts all or part of the Note at $2.00 per
share, then the holder shall be entitled to receive an additional Promissory Note with the same economic terms as the original Promissory
Note in a principal amount equal to (A) $2.00 minus the VWAP multiplied by (B) the number of Conversion Shares issued upon the conversion.

During
fiscal year 2024, the Company entered into a series of amendments with the Sellers to restructure obligations related to the Promissory
Notes issued in connection with the Forever 8 acquisition.

On
March 17, 2024, the Company entered into an initial amendment pursuant to which:

●Approximately
                                            $3.0 million in accrued interest was forgiven with no additional consideration,

●An