Company: ARAI
Filing Date: 2025-05-14
Form Type: DRS
Source: 0001641172-25-010170
Chunk: 126

Company: Arrive AI Inc.
Filing Date: 2025-05-14
Form: DRS
Chunk 126
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i) may issue and sell one or more pre-paid purchase agreements, in the form substantially similar to the exhibit attached thereto (each, a “Pre-Paid Purchase”), up to an aggregate purchase amount of $40,000,000.00 (the “Commitment Amount”) for shares of our common stock, par value $0.0002 per share, on the terms and subject to the limitations and conditions set forth in each Pre-Paid Purchase, (ii) issued and sold the initial Pre-Paid Purchase in the principal amount of $4,330,000.00 (the “Initial Pre-Paid Purchase”) on [●], 2025, (iii) delivered 62,500 shares of our common stock (the “Commitment Shares”) to Streeterville on [●], 2025, (iv) delivered 2,937,500 shares of our common stock (the “Pre-Delivery Shares”) against Streeterville’s payment of $587.50 on [●], 2025.

Under the Purchase Agreement, each Pre-Paid Purchase consists of a principal balance upon which Streeterville, at its option, may require the Company to issue shares of our common stock (“Purchase Shares”), from time to time, in satisfaction of all or part of the outstanding balance of such Pre-Paid Purchase. The Company will deliver these Purchase Shares at a per-share purchase price set forth in the Pre-Paid Purchase (the “Purchase Share Purchase Price”), subject to a defined floor price and other conditions. Each Pre-Paid Purchase is a separate instrument with its own outstanding balance and holding period.

The Initial Pre-Paid Purchase in the principal amount of $4,330,000.00 carries an original issue discount of $320,000.00 (“OID”) and an additional transaction expense amount of $10,000.00 to cover Streeterville’s legal, administrative, and due diligence costs (the “Transaction Expense Amount”). Therefore, the net amount funded to the Company on [●], 2025 was $4,000,000.00 (not including the Pre-Delivery Purchase Price). Along with the Initial Pre-Paid Purchase, the Company issued 62,500 Commitment Shares to Streeterville.

Under the Initial Pre-Paid Purchase, if Streeterville elects to receive Purchase Shares, the Purchase Share Purchase Price will be determined as the lower of (i) the initial listing reference price on our common stock on the Nasdaq Global Market, or (ii) 90% of the lowest daily volume weighted