Company: SRFM
Filing Date: 2025-11-12
Form Type: 8-K
Source: 0001193125-25-277566
Chunk: 2

Company: SURF AIR MOBILITY INC.
Filing Date: 2025-11-12
Form: 8-K
Item: Item 1.01
Chunk 2
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 conversion of the Note are being offered and sold in reliance on the private placement exemption from registration provided by Section 4(a)(2) of the Securities Act.

The Warrants

The exercise price of each Registered Warrant is $3.32 per share. The Registered Warrants are exercisable immediately and expire on the second anniversary of the original issuance date. The Registered Warrants are initially exercisable solely on a cashless basis, but will become exercisable against payment of the exercise price if the Company subsequently files, and causes to become effective, a registration statement registering such exercise and notifies the holders.

Subject to specified conditions, the Company may force the holder to exercise the Registered Warrants at any time if the last reported sale price per share of Common Stock equals or exceeds 150% of the exercise price on each of the immediately preceding 20 consecutive trading days beginning after the original issuance date of the Registered Warrants and ending on the date upon which the forced exercise notice is delivered to the holder.

The Private Placement Warrants have terms substantially identical to the Registered Warrants (other than as regards transfer restrictions related to the private placement and that the private placement warrants will be exercisable for cash from the time of issuance). We are required to use commercially reasonable efforts to file a registration statement registering the resale of the shares of common stock issuable upon exercise of the Private Placement Warrants within 100 days following the Closing Date and to use commercially reasonable efforts to cause the applicable registration statement to become effective within 130 days following the Closing Date.

The Note

The Note will be the senior secured obligation of the Company, guaranteed by certain of the Company’s subsidiaries. The Note is being sold at 87.8% of its principal amount the Company will receive $65 million of proceeds before expenses for the Note. The Note will not accrue interest except in the event of an event of default. The Note will accrue interest at a rate of 15% per annum upon any event of default. The Note will mature on October 31, 2028, unless earlier converted, redeemed or repurchased. Repayment of any principal amount remaining outstanding at maturity will be required to be made at 105% of such principal amount.

The Note may be converted at an initial conversion rate of 251.0040 shares of Common Stock per $1,000 principal amount of Note (equivalent to an initial conversion price of approximately $3.98 per share of Common Stock), representing an aggregate of 18,574,297 shares of Common Stock.