Company: ANY
Filing Date: 2025-10-17
Form Type: 8-K
Source: 0001062993-25-016177
Chunk: 0

Company: Sphere 3D Corp.
Filing Date: 2025-10-17
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement.

As previously reported, on November 21, 2024, Sphere 3D Corp. (the "Company") closed on a private placement transaction whereby it issued warrants (the "Existing Warrants") to purchase up to 4,368,211 of the Company's common shares to an accredited investor (the "Purchaser"). The Existing Warrants had an exercise price of $1.50 per share (subject to adjustment as set forth in the Existing Warrants) and became exercisable six months after issuance.

On October 16, 2025, the Company entered into a warrant inducement offer letter (the "Inducement Agreement") with the Purchaser whereby the Company offered the Purchaser the ability to exercise its Existing Warrants at an exercise price of $0.94 per share. In addition, pursuant to the Inducement Agreement, the Company offered to issue new warrants (the "New Warrants") to purchase a number of shares equal to 200% of the number of common shares issued pursuant to the exercise of the Existing Warrants, or up to 8,736,422 common shares.

The New Warrants have an exercise price of $0.94 per share(subject to adjustment as set forth in the New Warrants), will become exercisable on the date (the "Stockholder Approval Date") on which the Company receives approval from its stockholders with respect to the issuance of the New Warrants and common shares issuable upon the exercise thereof ("Stockholder Approval"), and will expire on the five-year anniversary of the Stockholder Approval Date. The New Warrants contain standard anti-dilution adjustments to the exercise price including for share splits, share dividends, rights offerings and pro rata distributions. A holder of the New Warrants will not have the right to exercise any portion of the New Warrants if the holder (together with its affiliates) would beneficially own in excess of 9.99% of the number of the Company's common shares outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the New Warrants.

The Company expects the transaction to close on October 17, 2025, subject to customary closing conditions. If all Existing Warrants are exercised, the Company will receive total gross cash proceeds of approximately $4 million. The Company intends to use the net proceeds from the offering for working capital and other general corporate purposes.

In connection with the Ind