Company: SRFM
Filing Date: 2025-11-17
Form Type: S-3/A
Source: 0001193125-25-283550
Chunk: 10

Company: SURF AIR MOBILITY INC.
Filing Date: 2025-11-17
Form: S-3/A
Chunk 10
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 Delaware corporation, Southern is the largest passenger operator of Cessna Grand Caravan EXs (“Cessna Caravans”) in the United States by scheduled departures. Southern has multi-year contracts with the U.S. federal government to operate Essential Air Service routes, which ensures small communities in the United States can maintain a minimum level of scheduled air services.

Convertible Note

On November 10, 2025, we entered into a securities purchase agreement (the “Purchase Agreement”) with certain institutional investors relating to the offering and sale of $74.0 million aggregate principal amount of the Note in a private placement.

The Note will be our senior secured obligation, guaranteed by certain of our subsidiaries. The Note was sold at 87.8% of its principal amount and we received $65.0 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. The conversion rate is subject to adjustment if certain events occur.

Subject to specified conditions, we may force the holder to convert the Note at any time if the last reported sale price per share of common stock equals or exceeds 150% of the then current conversion price on each of the immediately preceding 20 consecutive trading days, in amounts (i) not less than the lesser of (x) $10,000,000 and (y) the remaining outstanding principal amount of the Note, but (ii) not greater than 2.5 times the average dollar daily trading volume during the related 20 trading day measurement period.

The holder will have the option to require the Company to partially redeem the Note on the first and fifteenth day of each month beginning March 1, 2026 in an amount equal to the greater of (a) 5.0% of the aggregate dollar trading volume of the Common Stock, (b) an amount equal to (