Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 2161

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 9B
Chunk 2161
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 the aggregate issuance of 20,000 common
shares, as well as warrants to purchase additional shares up to the initial subscription amount; the warrants are exercisable for two
years and have an exercise price equal to fifty percent of the price per share the Company sells its common shares in its IPO. The warrants
were determined to be equity classified and were recorded at fair value in additional paid-in capital on the balance sheet for the period.
Their fair value was based on the price the third-party investors paid for the original subscription agreements described above.

In
April 2023, the Company also issued warrants to purchase 5,000 shares of common stock to the underwriters at an exercise price of $66.00
per share.

October
2023 SPA with Warrants

On
October 4, 2023 and December 29, 2023, the Company entered into placement agent agreements with Spartan (see Note 8 for further information)
for their role in connection with the two tranche fundings related to the October 2023 SPA; among other things, the agreements provide
the agent with equity-classified warrants to purchase a number of common shares equal to 5% of the number of common shares initially
issuable upon conversion of each note tranche. For the first tranche, the Company issued to Spartan warrants to purchase 4,167 shares
of common stock with a fair value of $38,029; the factors used to determine fair value were a share price of $11.00, an exercise price
of $26.40, an expected term of 5 years, annualized volatility of 137.10%, a dividend rate of zero percent and a discount rate of 4.72%.
For the second tranche, the Company issued to Spartan warrants to purchase 2,750 common shares of common stock with a fair value of $14,753;
the factors used to determine fair value were a share price of $6.40, an exercise price of $11.00, an expected term of 5 years, annualized
volatility of 137.10%, a dividend rate of zero percent and a discount rate of 3.93%.

On
January 2, 2024, the second tranche of the October 2023 SPA was funded (see Note 9 for further information); in connection with this
funding, the Company issued to the investor equity warrants to purchase up to 22,279 shares of common stock with an aggregate relative