Company: TPET
Filing Date: 2025-01-30
Form Type: 10-K/A
Source: 0001493152-25-004268
Chunk: 33

Company: Trio Petroleum Corp.
Filing Date: 2025-01-30
Form: 10-K/A
Chunk 33
---
 31, 2023 |
|:------------------------|:----|:---|---------:|:----|:---|----------:|
| Convertible             
 note, net of discounts  |     | $  |        - |     | $  | 1,217,597 |
| Promissory              
 notes, net of discounts |     |    |  742,852 |     |    |         - |
| Note                    
 payable – related party |     |    |  135,000 |     |    |         - |
| Total                   
 Notes payable           |     | $  |  877,852 |     | $  | 1,217,597 |

Convertible note, net of discounts (October 2023 SPA)

On October 4, 2023, the Company entered into a securities purchase agreement (the “October 2023 SPA”) with an investor; the October 2023 SPA provides for loans in an aggregate principal amount of up to $ 3.5million under two tranches, with first and second tranche fund amounts of $ 2.0million and $ 1.5million, respectively.

In consideration for the investor’s funding of the first tranche, the Company issued i) a senior secured convertible promissory note in the aggregate principal amount of $ 2,000,000(the “Note”) and ii) a warrant to purchase up to 43,336shares of Common Stock at an initial exercise price of $ 24.00per share of Common Stock, subject to certain adjustments (the “Common Warrant”). The Note was initially convertible into shares of Common Stock at conversion price of $ 24.00, subject to certain adjustments (the “Conversion Price”), provided that the Conversion Price shall not be reduced below $ 7.00(the “Floor Price”). The Note did not bear any interest and matured on April 4, 2025.

Upon the initial funding on October 4, 2023, the Company recorded gross proceeds of approximately $ 2.0million, a 7% original issue discount of $ 140,000and debt issuance costs of $ 350,320, for net proceeds of approximately $ 1.5million. The Company also issued a warrant to purchase up to 43,336shares of common stock with an aggregate relative fair value of $ 332,630; the factors used to determine fair value were a share price of $ 11.00, an exercise price