Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 222

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 222
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 balance is ...  
  (iii)      The balance of investment payable relates to the Company’s investment                                                                                                                                 

Note 16 - Convertible Notes and Derivative Liabilities

From September 30,
2024 to December 2024, the Company, GCL Global, and Epic SG, entered into convertible note purchase agreements (the “ Note
Purchase Agreements”) with each of certain accredited investors (the “ Transaction Investors”) pursuant to which the
Transaction Investors have agreed to pay GCL Global an aggregate of $33,025,000for certain convertible notes (the “ Note”)
which shall automatically convertible into GCL Global’s fully paid and nonassessable ordinary shares that would be exchanged for7,338,887shares of Merger Consideration Shares (as defined in the Merger Agreement) at $4.50per share at the closing of the transactions
(the “ Conversion Date”) contemplated by the Merger Agreement (the “ Business Combination”). The number of Merger
Consideration Shares is determined based on the Exchange Ratio established in the Merger Agreement. Pursuant to the Note Purchase Agreements,
an additional thirty percentage (30%) of the number of Merger Consideration Shares issued to the Transaction Investors (the “ Bonus
Shares”) will be held in an escrow account for three (3) years from the Conversion Date. At the end of each of the first three
anniversary dates of the Conversion Date (each such year, a “ Bonus Year”), one-third (1/3) of the Bonus Shares shall be released
from the escrow account to either the Transaction Investors or to the Company for cancellation, based on the number of Merger Consideration
Shares held by the Transaction Investors at the end of Bonus Year. In the event that the lowest volume-weighted average closing price
of the Merger Consideration Shares is less than $4.50per share for any ten(10) consecutive trading days during the last month prior
to the third anniversary day of the Conversion Date, the Transaction Investors will be entitled to receive certain Top-Up Shares (defined
in the Note Purchase Agreement) and, under certain limited circumstances, a cash payment, based on the number of Merger Consideration
Shares held on the third anniversary date of the Business Combination. The Transaction Investors will be entitled to receive110% of
the outstanding principal balance of the Note in the event that the Business Combination is not consummated on or before March 28,
2025, or if the per share price used to