# EDGAR Filing Document

**Accession Number:** 0001879001
**File Stem:** 0001493152-25-029451
**Filing Date:** 2025-12
**Character Count:** 99821
**Document Hash:** 25a5779da226fe4c182400bef99fa82d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-029451.hdr.sgml**: 20251229

**ACCESSION NUMBER**: 0001493152-25-029451

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20251218

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

**ITEM INFORMATION**: Unregistered Sales of Equity Securities

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251229

**DATE AS OF CHANGE**: 20251229

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Verses AI Inc.
- **CENTRAL INDEX KEY:** 0001879001
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56692
- **FILM NUMBER:** 251610452

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 595 HOWE STREET
- **STREET 2:** 10TH FLOOR
- **CITY:** VANCOUVER
- **PROVINCE COUNTRY:** A1
- **ZIP:** V6C2T5
- **BUSINESS PHONE:** (310) 988-1944

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 595 HOWE STREET
- **STREET 2:** 10TH FLOOR
- **CITY:** VANCOUVER
- **PROVINCE COUNTRY:** A1
- **ZIP:** V6C2T5

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Verses Technologies Inc.
- **DATE OF NAME CHANGE:** 20210818

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT** 

**PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): **December 18, 2025**

**VERSES AI INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **British Columbia, Canada** | **000-56692** | **88-2921736** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **2121 Avenue of the Stars, 8th Floor<br> Los Angeles, CA** | **90067** |
| (Address of principal executive offices) | (Zip Code) |

---

**(310) 988-1944**

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

**Item 1.01 Entry Into a Material Definitive Agreement**

On December 18, 2025, Verses AI Inc. (the "Company") issued an aggregate of 2,650 secured convertible debenture units (the "Units") to an accredited investor in a private placement offering (the "Offering") for an aggregate value of CAD$2,650,000 before transaction fees and the exchange of obligations of or commitments by the Company to the investor. Each Unit consists of one 15% senior secured convertible debenture (a "Debenture") in the principal amount of CAD$1,000 and 164 detachable share purchase warrants (the "Warrants"). Each Warrant is exercisable for a period of three years from the date of issuance for one Class A Subordinate Voting Share of the Company (a "Share") at an exercise price of CAD$7.00 per share. As a result, the Company issued Debentures with an aggregate principal amount of CAD$2,650,000 and 434,600 Warrants in exchange for CAD$2,400,000 cash after fees.

The Debenture will mature on December 18, 2027 ("Maturity Date"). The Debenture bears interest at a rate of 15% per annum, payable in arrears on the earlier of conversion, prepayment, or the Maturity Date. Interest will be paid in either cash or, at the option of the holder, by the issuance of Shares, subject to approval of Cboe Canada Inc., whereby the interest on the Debenture will be converted to Shares based on a conversion price of CAD$3.04 (the "Conversion Price"). The Debenture will rank senior to all other existing and future indebtedness of the Company and are secured by a first-ranking security interest over all present and after-acquired property and assets of the Company.

At any time during the term of the Debenture, a holder thereof may elect to convert the outstanding principal and any accrued and unpaid interest thereon into Shares at the Conversion Price. The proceeds of the Offering are expected to be used for general working capital purposes.

The foregoing descriptions of the Debentures and the Warrants, do not purport to be complete and are qualified in their entirety by reference to the Debentures and Warrants, forms of which are attached to this Current Report on Form 8-K as Exhibits 4.1 and 4.2 respectively, and are incorporated into this Item 1.01 by reference.

**Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.**

The information set forth in Item 1.01 related to the Debentures is incorporated herein by reference.

**Item 3.02. Unregistered Sales of Equity Securities**

The information set forth in Item 1.01 related to the Debentures and Warrants is incorporated herein by reference.

The Units, the Debentures, the Warrants and the Shares issuable upon exercise of the Debentures and/or the Warrants have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state, and are being offered and sold in reliance on the exemption from registration under the Securities Act, afforded by (i) Section 4(a)(2) of the Securities Act and/or Rule 506(b) promulgated thereunder for sales to persons in the United States and (ii) Rule 903 of Regulation S of the Securities Act for sales to persons located outside of the United States who were not "U.S. persons" as defined in Rule 902(k) of Regulation S.

**Item 8.01 Other Events.** 

On December 19, 2025, the Company issued a press release announcing the closing of the Offering. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.

This press release was issued pursuant to and in accordance with Rule 135c under the Securities Act.

**Item 9.01. Financial Statements and Exhibits**

(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 4.1 | [Form of Debenture dated December 18, 2025](ex4-1.htm) |
| 4.2 | [Form of Warrant, dated December 18, 2025](ex4-2.htm) |
| 99.1 | [Press Release dated December 19, 2025](ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | Verses AI Inc. | Verses AI Inc. |
| December 29, 2025 | By: | */s/ James Christodoulou* |
|  |  | James Christodoulou |
|  |  | Chief Financial Officer |

---

## Exhibit 4.1

**Exhibit 4.1**

**Certificate No. DEB-2025-12-«CertNo»**

**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE APRIL 19, 2026.**

**THE SECURITIES REPRESENTED HEREBY AND THE UNDERLYING SECURITIES ISSUABLE UPON EXERCISE OR CONVERSION HEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR UNDER ANY STATE SECURITIES LAWS, AND THE SECURITIES REPRESENTED HEREBY MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO VERSES AI INC. (THE "CORPORATION"), (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY (i) RULE 144 OR (ii) 144A UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN COMPLIANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS, (C) IN COMPLIANCE WITH ANOTHER EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR (D) UNDER AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (B)(i) OR (C) ABOVE, A LEGAL OPINION REASONABLY SATISFACTORY TO THE CORPORATION MUST FIRST BE PROVIDED TO THE CORPORATION'S REGISTRAR AND TRANSFER AGENT TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

**<u>VERSES AI INC.</u>**

**C«PrincipalSum»**

**SECURED CONVERTIBLE DEBENTURE**

This Debenture is issued to the Holder as part of a series of concurrent private placements of convertible debentures being offered by the Corporation as a series of like debentures except as to Principal Amount.

**NOW THEREFORE** it is hereby covenanted, agreed and declared as follows:

**Article I<br> <u>INTERPRETATION</u>**

**1.1 <u>Definitions</u>.** In this Debenture, including the preamble, unless there is something in the subject matter or context inconsistent therewith, the following expressions shall have the following meanings namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Bankruptcy Law**" means Title 11, U.S. Code, the *Bankruptcy and Insolvency Act* (Canada),
 the *Companies' Creditors Arrangement Act* (Canada), any provision in applicable
 United States federal, Canadian, state, provincial or foreign corporate law with respect
 to arrangements or reorganizations, in each case, as amended, or any similar United States
 federal, Canadian, provincial or foreign law for the relief of debtors;

(b) "**Business Day**" means any day other than a Saturday, Sunday, legal holiday or a day on which
 banking institutions are closed in Vancouver, British Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Capital Reorganization**" has the meaning ascribed thereto in Section 5.4;

(d) "**Capital Stock**" of any person means any and all shares, interests, rights to purchase, warrants,
 options, participations or other equivalents of or interests in (however designated) equity
 of such person, including any preferred stock and limited liability or partnership interests
 (whether general or limited), but excluding any debt securities convertible or exchangeable
 into such equity;

(e) "**CBOE** "
 means Cboe Canada Inc.;

(f) "**Change of Control**" means (i) a merger, amalgamation, arrangement, or other business combination
 of the Corporation with or into another entity (other than a merger or amalgamation in which
 the Corporation is the continuing or surviving entity and its shareholders immediately prior
 to such transaction continue to hold at least a majority of the voting power of the Corporation);
 (ii) a sale, lease, transfer or other disposition of all or substantially all of the assets
 of the Corporation; or (iii) any other transaction or series of related transactions as a
 result of which any person or group acquires beneficial ownership of such number and class
 of shares holdings at least a majority of the voting power of the Corporation;

(g) "**Class A Shares**" means the Class A Subordinate Voting shares of the Corporation as such
 shares are constituted on the date hereof;

(h) "**Collateral** "
 has the meaning ascribed thereto in Section 4.3(a);

(i) "**Conversion** "
 means conversion of this Debenture in accordance with Article V;

(j) "**Conversion Price**" means C$3.04, as may be adjusted in accordance with Article V;

(k) "**Corporation** "
 means Verses AI Inc., a corporation existing under the laws of the Province of British Columbia
 and its permitted successors and assigns;

(l) "**Debenture** ",
 "**this Debenture** ", "**the Debenture** ", "**herein** ",
 "**hereby** ", "**hereof** ", "**hereto** ", "**hereunder** "
 and similar expressions mean or refer to this secured convertible debenture and any deed
 or instrument supplemental or ancillary thereto and any schedules hereto or thereto and not
 to any particular article, section, subsection, clause, subclause or other portion hereof,
 and the "**Debentures**" means this Debenture together with all other debentures
 being part of a series of like debentures except as to principal amount thereof;

(m) "**Debenture Securities**" means the Class A Shares issuable upon Conversion;

(n) "**Event of Default**" means any one of the following events (whatever the reason for such
 Event of Default and whether it shall be voluntary or involuntary or be effected by operation
 of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation
 of any government of any nation or any political subdivision thereof, and any agency, authority,
 instrumentality, regulatory body, ministry, court, central bank or other entity exercising
 executive, legislative, judicial, taxing, regulatory or administrative powers or functions
 of or pertaining to government):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) default
 in the payment of Principal Amount when due at the Maturity Date, upon redemption, repurchase,
 declaration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) default
 in any payment of interest on this Debenture when due, and such default continues for a period
 of five (5) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 the Corporation fails to observe or defaults under any covenant or agreement of the Corporation
 set out in this Debenture and such failure or default continues for the period of 14 Business
 Days following the service by the Holder of written notice on the Corporation requiring the
 same to be remedied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if
 the Corporation is to receive the benefit of a stay of proceedings or other relief under
 any applicable Bankruptcy Law, makes a general assignment for the benefit of creditors or
 any Insolvency Proceeding or any other proceeding is instituted by it seeking relief as debtor,
 or to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up, reorganization,
 arrangement, adjustment or composition of it or its debts or for an order for similar relief
 under any Bankruptcy Law or seeking appointment of a receiver or trustee, or other similar
 official for it or for any substantial part of its properties or assets or any corporate
 or partnership action is taken to authorize any of the actions referred to in this definition
 of "Event of Default";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if
 any Insolvency Proceedings or other proceedings are instituted against the Corporation seeking
 to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up, reorganization,
 arrangement, adjustment or composition of it or its debts or an order for similar relief
 under any Bankruptcy Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if
 any Insolvency Proceedings or other proceedings with respect to the Corporation are commenced
 under the *Companies' Creditors Arrangement Act* (Canada); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) if
 the Corporation takes any steps in respect of any Insolvency Proceedings or any other corporate
 proceedings for its dissolution or liquidation, or if the corporate existence of the Corporation
 shall be terminated by expiration, forfeiture or otherwise, or if the Corporation ceases
 or threatens to cease to carry on all or a substantial part of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Excess** "
 has the meaning ascribed thereto in Section 3.4;

(p) "**Governmental Authority**" means the government of Canada, or of any political subdivision thereof,
 whether state, provincial, territorial, regional, county, municipal or local, and any Canadian
 agency, authority, instrumentality, regulatory body, ministry, court, central bank or other
 entity exercising executive, legislative, judicial, taxing, regulatory or administrative
 powers or functions of or pertaining to government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Holder** "
 has the meaning ascribed thereto in Section 2.1;

(r) "**Indebtedness** "
 has the meaning ascribed thereto in Section 2.1;

(s) "**Insolvency Proceeding**" means any action, application, case, proceeding or any other materials
 seeking a stay of proceedings commenced by or against a person under any Bankruptcy Law,
 or any agreement of such person, for (a) the entry of an order for relief under any Bankruptcy
 Law, (b) the appointment of a receiver (or administrative receiver), trustee, liquidator
 administrator, conservator or other custodian for such person or any part of its property,
 (c) an assignment or trust mortgage for the benefit of creditors of such person, or (d) the
 liquidation, dissolution or winding up of the affairs of such person;

(t) "**Interest** "
 has the meaning ascribed thereto in Section 3.4;

(u) "**Maturity Date**" means December 18, 2027;

(v) "**Milestone Event**" means any of (i) a Change of Control; (ii) S-1 Registration; or (iii) a
 U.S. Listing;

(w) "**Obligations** "
 means the Indebtedness and all other amounts due and other obligations of the Corporation
 arising under this Debenture;

(x) "**Other Debentures**" means other debentures issued on or about the same date as, and on
 substantially the same terms as, this Debenture;

(y) "**person** "
 means an individual, corporation, partnership, unincorporated syndicate, unincorporated organization,
 trust, trustee, executor, administrator, or other legal representative, or any group or combination
 thereof;

(z) "**PPSA** "
 has the meaning ascribed thereto in Section 4.2;

(aa) "**Prepayment** "
 has the meaning ascribed thereto in Section 2.3;

(bb) "**Prepayment Date**" has the meaning ascribed thereto in Section 2.3;

(cc) "**Principal Amount**" has the meaning ascribed thereto in Section 2.1;

(dd) "**S-1 Registration"** means the effectiveness, under the U.S. Securities Act, of a registration
 statement on Form S-1 filed by the Corporation with the United States Securities and Exchange
 Commission (the "**SEC** "), filed for the purpose of registering the resale
 of the Class A Shares underlying the Debentures by one or more selling securityholders, such
 that the Class A Shares covered thereby are eligible for public sale in the United States
 pursuant to the U.S. Securities Act and the rules and regulations promulgated thereunder;

(ee) "**Share Reorganization**" has the meaning ascribed thereto in Section 5.4;

(ff) "**Subsidiary** "
 of any person means (1) any corporation, association or other business entity (other than
 a partnership, joint venture, limited liability company or similar entity) of which more
 than 50% of the total ordinary voting power of shares of Capital Stock entitled (without
 regard to the occurrence of any contingency) to vote in the election of directors, managers
 or trustees thereof (or persons performing similar functions) or (2) any partnership, joint
 venture limited liability company or similar entity of which more than 50% of the capital
 accounts, distribution rights, total equity and voting interests or general or limited partnership
 interests, as applicable, is, in the case of clauses (1) and (2), at the time owned or controlled,
 directly or indirectly, by (a) such person, (b) such person and one or more Subsidiaries
 of such person or (c) one or more Subsidiaries of such person. Unless otherwise specified
 herein, each reference to a Subsidiary will refer to a Subsidiary of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**Taxes** "
 means all present or future taxes, levies, imposts, duties, deductions, withholdings (including
 backup withholding), assessments, fees or other charges imposed by any Governmental Authority,
 including any interest, additions to tax, penalties or similar liabilities applicable thereto;

(hh) "**U.S. Holder**" means any holder that (i) is in the United States, (ii) is a U.S. Person
 or is acting for the account or benefit of a U.S. Person, (iii) received an offer to purchase
 this Debenture while in the United States, or (iv) executed the purchase agreement pursuant
 to which this Debenture was purchased from the Corporation while in the United States;

(ii) "**U.S. Listing**" means the listing of the Corporation's Shares on either (i) the
 Nasdaq Stock Market (including any of its market tiers, such as the Nasdaq Global Select
 Market, Nasdaq Global Market, or Nasdaq Capital Market); or (ii) the New York Stock Exchange
 (including the NYSE American), pursuant to which the Shares become eligible for trading on
 such exchange;

(jj) "**U.S. Person**" means a "U.S. person" as defined in Regulation S under the
 U.S. Securities Act;

(kk) "**U.S. Securities Act**" means the United States *Securities Act of 1933*, as amended;
 and

(ll) "**Voluntary Conversion Notice**" has the meaning ascribed thereto in Section 5.1.

**1.2 <u>Gender</u>.** Whenever used in this Debenture, words importing the singular number only shall include the plural, and vice versa, and words importing the masculine gender shall include the feminine gender.

**1.3 <u>Numbering of Articles, etc.</u>** Unless otherwise stated, a reference herein to a numbered or lettered article, section, subsection, clause, subclause or schedule refers to the article, section, subsection, clause, subclause or schedule bearing that number or letter in this Debenture.

**1.4 <u>Day not a Business Day</u>.** In the event that any day on or before which any action is required to be taken hereunder is not a Business Day, then such action shall be required to be taken on or before the requisite time on the next succeeding day that is a Business Day. If the payment of any amount is deferred for any period, then such period shall be included for purposes of the computation of any interest payable hereunder.

**1.5 <u>Computation of Time Period</u>.** Except to the extent otherwise provided herein, in the computation of a period of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" each mean "to but excluding".

**1.6 <u>Currency</u>.** All references to dollars or to "$" shall be references to Canadian dollars unless otherwise specified.

**Article II<br><u> </u>**

**<u>PROMISE TO PAY</u>**

**2.1 <u>Indebtedness</u>.** The Corporation, for value received and in consideration of the premises, hereby acknowledges itself indebted and promises and covenants to pay to «HolderName» with an address at «HolderAddress», the registered holder hereof (together with its successors and permitted assigns, the "**Holder**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Principal Amount of C«PrincipalSum» (the "**Principal Amount** "),
 but only as to the amount of the Principal Amount which is then outstanding;

(b) interest
 on any monies owing by the Corporation to the Holder hereunder, all as specifically calculated
 hereunder; and

(c) all
 other monies which may be owing by the Corporation to the Holder pursuant to this Debenture

(collectively, the "**Indebtedness**").

**2.2 <u>Payment</u>.** Subject to Article V, in the event that the Debenture is not converted into Debenture Securities prior to the Maturity Date, the Indebtedness shall be repayable by the Corporation to the Holder in cash on the Maturity Date, less any Taxes required to be deducted and withheld.

2.3 <u>Prepayment</u>. The Corporation may prepay (the "Prepayment") the Principal Amount at any time, without penalty or premium, on not less than 30 days' prior written notice to the Holder, specifying the prepayment date (the "Prepayment Date"). On the Prepayment Date, the Corporation shall pay the outstanding Principal Amount, plus all accrued and outstanding unpaid interest up to the Prepayment Date. The Holder may, at any time before the Prepayment Date, convert all or any portion of the Principal Amount in accordance with Article V, and any Principal Amount so converted shall not be prepaid.

**Article III<br> <u>INTEREST</u>**

**3.1 <u>Calculation and Payment of Interest, etc.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Corporation shall pay simple interest on the outstanding Principal Amount from the date of
 this Debenture at the rate of 15.00% per annum, and shall be paid (i) in cash, or (ii) in-kind
 through the issuance of such number of Class A Shares as is determined by the quotient obtained
 by dividing: (A) the amount of interest payable by, (B) the Conversion Price, subject to
 CBOE approval. Interest shall be computed on the basis of a 360-day year composed of twelve
 30-day months. The interest will be payable in arrears on the earlier of (a) the date of
 Conversion, (b) the Prepayment Date, and (c) the Maturity Date, less any Taxes required to
 be deducted and withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the Conversion occurs prior to the Maturity Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 the Conversion occurs prior to the occurrence of a Milestone Event, the Holder shall be entitled
 to receive all accrued and outstanding unpaid interest up to the date of Conversion; and

(ii) if
 the Conversion occurs after the occurrence of a Milestone Event, the Holder shall be entitled
 to receive all accrued and outstanding unpaid interest up to the date of Conversion, plus
 an amount equal to the amount of interest that would have otherwise accrued on the Principal
 Amount to the Maturity Date but for such prior Conversion, subject to Section 3.4.

3.2 <u>No Merger In Judgment</u>. The covenant of the Corporation to pay interest at the rate provided herein shall not merge in any judgment in respect of any obligation of the Corporation hereunder and such judgment shall bear interest in the manner set out in this Article III and be payable on the same days when interest (whether hereunder or otherwise) is payable hereunder.

3.3 <u>Interest Act</u>. For the purposes of this Debenture, whenever interest is calculated on the basis of a period which is less than the actual number of days in a calendar year, each rate of interest determined pursuant to such calculation is, for the purposes of the *Interest Act* (Canada), equivalent to such rate multiplied by the actual number of days in the calendar year in which such rate is to be ascertained and divided by the number of days used as the basis of such calculation.

3.4 <u>Maximum Interest</u>. Regardless of any provision contained in this Debenture or any other related document, in no contingency or event whatsoever shall the aggregate of all amounts that are contracted for, charged or received by Holder pursuant to the terms of this Debenture or any other related document and that are deemed interest under applicable law exceed the highest rate permissible under any applicable law (including resulting in an amount or at a rate that would result in the receipt by Holder of interest at a criminal rate, as the terms "interest" and "criminal rate" are defined under the *Criminal Code* (Canada)), which a court of competent jurisdiction shall, in a final determination, deem applicable hereto. No agreements, conditions, provisions or stipulations contained herein or in any other related documents or the exercise by Holder of the right to accelerate the payment or the maturity of all or any portion of the Obligations or the prepayment by the Corporation of any of the Obligations, or the occurrence of any contingency whatsoever, shall entitle Holder to charge or receive, in any event, interest or charges, amounts, premiums or fees deemed interest by applicable law (such interest, charges, amounts, premiums and fees referred to collectively as "Interest") in excess of the maximum rate allowable under applicable law and in no event shall the Corporation be obligated to pay Interest exceeding such maximum rate, and all agreements, conditions, or stipulations, if any, which may in any event or contingency whatsoever operate to bind, obligate or compel the Corporation to pay Interest exceeding the maximum rate allowable under applicable law shall be without binding force or effect, at law or in equity, to the extent only of the excess of Interest over such maximum rate. If any Interest is charged or received in excess of the maximum rate allowable under applicable law ("Excess"), the Corporation acknowledges and stipulates that any such charge or receipt shall be the result of an accident and bona fide error, and such Excess, to the extent received, shall be applied first to reduce the principal Obligations and the balance, if any, returned to the Corporation, it being the intent of the parties hereto not to enter into a usurious or other illegal relationship. For the purpose of determining whether or not any Excess has been contracted for, charged or received by Holder, all Interest at any time contracted for, charged or received from the Corporation in connection with this Debenture or any other related document shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread in equal parts throughout the full term of the Obligations.

**Article IV<br> <u>RANKING AND SECURITY</u>**

4.1 <u>Series and Ranking</u>. This Debenture is one of a series of like Debentures, except as to Principal Amount, of the Corporation, all bearing interest at the rate (and calculated in the manner) provided in Article II and Article III. All Debentures of the said series are to rank *pari passu* in both right of payment and upon liquidation without any preference or priority one over another. The security interest granted to the Holder hereunder shall rank *pari passu* and rateably, without preference or priority, with the security interests granted in favour of the holders of all Other Debentures issued as part of the same series.

4.2 <u>PPSA Definitions.</u> Unless otherwise defined herein, terms used in this Article IV and defined in the *Personal Property Security Act* (British Columbia) (the "PPSA") shall have the meaning assigned to them in the PPSA or the regulations made under the PPSA.

4.3 <u>Grant of Security Interest.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As
 security for the payment and performance of the Obligations, the Corporation hereby grants,
 assigns, transfers, sets over, mortgages, charges and pledges to the Holder a general and
 continuing security interest in and to all of the Corporation's right, title and interest
 in and to all present and after-acquired personal property of the Corporation of every kind
 and nature whatsoever, including the following, wherever located, whether now existing or
 hereafter from time to time arising or acquired and all proceeds and products thereof, and
 all books and records relating thereto (all of the same being hereinafter called the "**Collateral** "):
 Accounts, Goods (including Inventory, Equipment, and any accessions thereto and motor vehicles,
 but excluding Consumer Goods), Intangibles, Chattel Paper, Documents of Title, Instruments,
 Securities, Securities Accounts and all other Investment Property, Money and any contract
 rights or rights to the payment of money, insurance claims and proceeds).

(b) Collateral,
 as defined in this section shall not include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 last day of the term of any lease, verbal or written, or any agreement to lease (but should
 the Holder need to enforce against the Collateral, the Corporation holds the last day in
 trust for the Holder and shall assign it to any person acquiring the term or that part of
 the term that is charged in the course of any enforcement or realization of the Collateral);
 and

(ii) Consumer
 Goods.

4.4 <u>Attachment.</u> The Corporation acknowledges that value has been given, that the Corporation has rights in the Collateral and that the parties have not agreed to postpone the time for attachment of any security interest in this Agreement. The Corporation acknowledges that any security interest in this Agreement shall attach to existing Collateral upon the execution of this Agreement and to each item of after-acquired Collateral at the time that the Corporation acquires rights in such after-acquired Collateral.

4.5 <u>Changes in Location of Collateral.</u> The Corporation hereby agrees not to change the location of the Collateral (other than in the ordinary course of business), without the prior written consent of the Holder and to provide the Holder with the new location of such Collateral. The Corporation will, prior to any such change, take all actions required by the Holder to maintain the perfection and priority of the Holder's security interest in the Collateral.

4.6 <u>Transfer or Encumbrances on Collateral.</u> The Corporation shall not sell, offer to sell, assign, lease, licence, or otherwise transfer, or grant, create, permit, or suffer to exist any option, security interest, lien, or other encumbrance in, any part of the Collateral (except for sales or leases of inventory or licences of general intangibles in the ordinary course of business), without prior written approval from the Holder.

4.7 <u>Perfection of Security Interest.</u> The Corporation agrees that at any time and from time to time, at the expense of the Corporation, the Corporation will promptly execute and deliver all further instruments and documents, obtain such agreements from third parties, and take all further action that may be necessary or desirable, or that the Holder may reasonably request, in order to create and/or maintain the validity, perfection or priority of and protect any security interest granted or purported to be granted hereby or to enable the Holder to exercise and enforce its rights and remedies hereunder or under any other agreement with respect to any Collateral. The Corporation hereby authorizes the Holder to file or record any document necessary to perfect, continue, amend, or terminate its security interest in the Collateral, including, but not limited to, any financing statements, including amendments, authorized to be filed under the PPSA. The Corporation also hereby ratifies any previously filed notices, documents or recordings regarding the Collateral, including but not limited to, any and all previously filed financing statements. To the extent permitted by law, the Corporation hereby waives its right to receive a copy of any financing statement, financing change statement or verification statement filed or received by or on behalf of the Holder in connection with the Holder's interest in the Collateral.

4.8 <u>Remedies.</u> If an Event of Default shall have occurred and be continuing, the Holder may do any or all of the following: (a) declare all Obligations immediately due and payable; (b) take such steps as it considers desirable to maintain, preserve or protect the Collateral or its value; (c) enter the Corporation's property where the Collateral is located and take possession of the Collateral to remove the Collateral or operate the business using the Collateral on the Corporation's property, without demand or legal process; (d) require the Corporation to assemble and deliver the Collateral to the Holder or, alternatively, at the choice of the Holder, make available the Collateral at a specific time and place designated by the Holder; (e) sell, lease, license or otherwise dispose of the Collateral at any public or private sale in accordance with the law; (f) appoint a private or court-appointed receiver, manager, interim receiver or receiver and manager of the Collateral or any part of it, which shall have, in addition to the powers afforded to it by law, the same powers and authorities afforded to the Holder under this Debenture; (g) retain the Collateral in satisfaction of the Obligations; and (h) enforce payment of the Obligations and exercise any rights and remedies available to the Holder under law, including, but not limited to, those rights and remedies available to the Holder under the PPSA.

4.9 <u>Holder Rights.</u> Any and all rights of the Holder provided by this Debenture are in addition to any and all rights available to the Holder by law and shall be cumulative and may be exercised simultaneously. No delay, omission, or failure on the part of the Holder to exercise or enforce any of its rights or remedies, either granted under this Debenture or by law, shall constitute an estoppel or waiver of such right or remedy or any other right or remedy. Any and all rights of the Holder provided by this Agreement shall inure to the benefit of its successors and assigns.

**Article V<u><br> CONVERSION</u>**

5.1 <u>Voluntary Conversion by Holder.</u> At any time and from time to time after February 9, 2026, subject to regulatory and CBOE approval, the Holder will have the right to convert all or any portion of the then outstanding Principal Amount into Class A Shares at the Conversion Price. Such conversion may be effected by the surrender of this Debenture for conversion at the offices of the Corporation, accompanied by a conversion notice (the "Voluntary Conversion Notice") signed by the Holder in the form attached as <u>Schedule "A"</u> hereto notifying the Corporation as to the exercise of the right of conversion and specifying the amount of Principal Amount being converted and setting forth the name and address of the nominees of the Holder in whose name(s) the Common Shares issuable upon such conversion are to be registered.

5.2 <u>Conversion Date.</u> The conversion of the Principal Amount will be deemed to have been made immediately prior to the close of business on the date on which this Debenture is surrendered for conversion (the "Conversion Date") in accordance with the provisions of this Article V. The Holder's rights in respect of the converted portion will terminate at the time of surrender, and the Holder, or its nominee, in respect of the portion of the Principal Amount which has been converted into Class A Shares will be treated, as between the Corporation and such person or persons, as having become the holder or holders of record of such Class A Shares on that date, provided that if this Debenture is surrendered for conversion on any day on which the register for Class A Shares is closed, the Holder or its nominee entitled to receive the Class A Shares issued upon the conversion of this Debenture will become the holder of record of such Class A Shares as of the date on which the register of Class A Shares is next open.

5.3 <u>Issuance of Certificates Representing the Class A Shares.</u> As promptly as practicable after the Conversion Date, the Corporation will issue to the Holder, or its nominee(s), certificates representing that number of applicable whole Class A Shares issuable pursuant to the conversion of the Principal Amount in accordance with the terms of this Debenture and will cause the Holder or its nominee to be entered in its books as of the Conversion Date as the holder of the number of Class A Shares into which the Principal Amount, or portion thereof being converted, is converted. Class A Shares issued upon such conversion will be entitled to dividends (if any) declared in favour of holders of Class A Shares of record on and after the Conversion Date. As of and from the Conversion Date, the Class A Shares so issued will for all purposes be and be deemed to be issued and outstanding as fully paid and non-assessable Class A Shares. In the event that any amounts remain outstanding under this Debenture after giving effect to such conversion, the Corporation will acknowledge in writing the amount of remaining Principal Amount owing by the Corporation to the Holder.

5.4 <u>Adjustment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 and whenever the Corporation shall (i) subdivide or redivide the outstanding Class A
 Shares into a greater number of Class A Shares; (ii) reduce, combine or consolidate
 the outstanding Class A Shares into a smaller number of Class A Shares; (iii) issue
 any Class A Shares to the holders of all or substantially all of the outstanding Class A
 Shares by way of a stock dividend (each of (i), (ii) and (iii), a "**Share Reorganization** "),
 the number of Class A Shares which may be acquired pursuant to this Article V on and
 at any time after the effective date of such Share Reorganization or on the record date for
 such issue of Class A Shares by way of a stock dividend, as the case may be, shall be increased,
 in the case of the events referred to in (i) and (iii) above, in the proportion which the
 number of Class A Shares outstanding before such subdivision, redivision or dividend bears
 to the number of Class A Shares outstanding after such subdivision, redivision or dividend,
 or shall be decreased, in the case of the events referred to in (ii) above, in the proportion
 which the number of Class A Shares outstanding before such reduction, combination, or consolidation
 bears to the number of Class A Shares outstanding after such reduction, combination or consolidation,
 and in each case the price at which the Conversion shall occur will be adjusted to reflect
 the change in the number of Class A Shares that become issuable under this Article V.
 Any such issue of Class A Shares by way of a stock dividend shall be deemed to have been
 made on the record date fixed for such stock dividend for the purpose of calculating the
 number of outstanding Class A Shares under this Section 5.2(a) or under Section 5.2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In
 the case of any reclassification of the outstanding Class A Shares into other securities
 or other capital reorganization (other than a Share Reorganization), or a consolidation,
 amalgamation, arrangement or merger of the Corporation with or into any other corporation
 or any other entity, or a transfer of the undertaking or assets of the Corporation as an
 entirety or substantially as an entirety to another corporation or to another entity in which
 the holders of Class A Shares are entitled to receive shares, other securities or other property
 (any of such events being called a "**Capital Reorganization** "), subject
 to the approval of the CBOE , the Holder shall be entitled
 to receive upon Conversion pursuant to Article V, and shall accept in lieu of the number
 of Class A Shares to which it was theretofore entitled upon such conversion, other securities
 or other property which the Holder would have been entitled to receive as a result of such
 Capital Reorganization if, on the effective date thereof, the Holder had been the registered
 holder of the number of Class A Shares to which the Holder was previously entitled upon conversion
 subject to adjustment thereafter in accordance with provisions the same, as nearly possible,
 as those contained in this Article V. The Corporation will ensure that, on a Capital
 Reorganization, the Holder will receive the aggregate number of shares, other securities
 or other property to which the Holder is entitled as a result of the Capital Reorganization.
 Appropriate adjustments will be made as a result of any such Capital Reorganization in the
 application of the provisions set forth in this Article V with respect to the rights
 and interests of the Holder to the end that the provisions set forth in this Article V
 will thereafter correspondingly be made applicable as nearly as may reasonably be in relation
 to any shares, other securities or other property thereafter deliverable upon the conversion
 of any Debenture. Any such adjustment will be made by and set forth in an instrument supplemental
 hereto approved by the board of directors of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 and whenever at any time after the date hereof, the Corporation takes any action to which
 the foregoing anti-dilution adjustments *,* in the opinion of the board of directors
 of the Corporation, acting reasonably and in good faith, are not strictly applicable, or
 if strictly applicable would not fairly adjust the rights of the Holder in accordance with
 the intent and purposes thereof, then subject to the approval of the CBOE ,
 the Corporation shall execute and deliver to the Holder an amendment hereto providing for
 an adjustment in the application of such provisions so as to adjust such rights as aforesaid
 in such a manner as the board of directors of the Corporation may determine to be equitable
 in the circumstances, acting reasonably and in good faith.

**5.5 <u>No Fractional Shares</u>.** The Corporation shall not be required to issue fractional Class A Shares. Any entitlement to a fraction of a Class A Share upon conversion of this Debenture will be rounded down to the nearest whole number.

**5.6 <u>Reservation of Shares</u>.** The Corporation shall at all times while the Debenture remains convertible into Class A Shares as herein provided, reserve and keep available out of its authorized but unissued share capital, for the purpose of effecting the conversion of the Debenture, such number of Class A Shares as shall from time to time be sufficient to effect the conversion of the Debenture.

**5.7 <u>Legends</u>.** In addition to any legend setting forth transfer restrictions under applicable securities legislation, if Class A Shares are issued pursuant to this Debenture prior to the date that is four months and one day after the date of issuance of this Debenture, the certificates representing such Class A Shares issued to the Holder will be endorsed with a legend setting out resale restrictions under applicable securities laws in substantially the following form:

"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE APRIL 19, 2026."

In addition to the legends set forth above, unless the Class A Shares issuable upon conversion of this Debenture are registered for resale pursuant to an effective registration statement under the U.S. Securities Act, the certificates representing such Class A Shares issued pursuant to the conversion of this Debenture will be endorsed with a legend setting out resale restrictions under applicable United States securities laws in substantially the following form:

"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR UNDER ANY STATE SECURITIES LAWS, AND THE SECURITIES REPRESENTED HEREBY MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO VERSES AI INC. (THE "CORPORATION"), (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY (i) RULE 144 OR (ii) 144A UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN COMPLIANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS, (C) IN COMPLIANCE WITH ANOTHER EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR (D) UNDER AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (B)(i) OR (C) ABOVE, A LEGAL OPINION REASONABLY SATISFACTORY TO THE CORPORATION MUST FIRST BE PROVIDED TO THE CORPORATION'S REGISTRAR AND TRANSFER AGENT TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA."

**Article VI<br> <u>COVENANTS</u>**

**6.1 <u>Corporation Covenants</u>.** The Corporation hereby covenants and agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 use the Principal Amount advanced by the Holder under this Debenture to fund general working
 capital; and

(b) to
 use commercially reasonable efforts to forthwith obtain such regulatory approvals as may
 be necessary for the Corporation to issue the Debenture Securities and have any Class A Shares
 comprising the Debenture Securities or any Class A Shares which are issuable on conversion,
 exercise or exchange of the Debenture Securities, conditionally approved for listing on the CBOE .

6.2 <u>Other Debentures</u>. Without the prior written consent of the Holder, the Corporation shall not amend, modify or supplement the terms of any Other Debenture in a manner favourable to any holder of such Other Debenture unless the Corporation has offered to make the same amendment, modification of supplement to this Debenture.

**Article VII<br> <u>DEFAULT</u>**

**7.1 <u>Acceleration of Maturity on Default</u>.** If there shall have occurred any Event of Default, except to the extent the Holder has waived such Event of Default in writing in accordance with Section 8.1, the aggregate amount of Principal Amount outstanding under this Debenture, all interest then accrued but unpaid on this Debenture and all other Indebtedness shall forthwith become immediately due and payable to the Holder, anything herein contained to the contrary notwithstanding, and the Corporation shall forthwith pay to the Holder of the Debenture the sum equal to the aggregate amount of the Principal Amount outstanding under this Debenture plus all interest then accrued but unpaid on the Debenture and all other outstanding Indebtedness together with interest at the rate of interest borne by this Debenture on such aggregate amount of Principal Amount outstanding under this Debenture, the interest accrued but unpaid and other Indebtedness owing from the date of the said Event of Default until payment is received by the Holder.

**7.2 <u>Waiver of Corporation's Rights</u>.** To the full extent that it may lawfully do so, the Corporation for itself and its successors and assigns hereby waives and disclaims any benefit of, and shall not have or assert any right under, any statute or rule of law pertaining to the marshaling of assets, discussion, division or other matter whatever, to defeat, reduce or affect the rights of the Holder under the terms of this Debenture. No failure or delay on the part of the Holder to exercise any right, power or remedy provided herein may be, or may be deemed to be a waiver thereof; nor may any single or partial exercise of any right, power or remedy on the part of the Holder preclude any other or further exercise of such right, power or remedy or any other right, power or remedy.

**Article VIII<br> <u>WAIVER</u>**

**8.1 <u>Waiver</u>.** The Holder may waive in writing any breach of any of the provisions contained in this Debenture or any default by the Corporation in the observance or performance of any covenant, condition or obligation required to be observed or performed by it under the terms of this Debenture or the occurrence of any Event of Default. No waiver, consent, act or omission by the Holder shall extend to or be taken in any manner whatsoever to affect any other or subsequent breach or default or the rights resulting therefrom and no waiver or consent by the Holder shall bind the Holder unless it is in writing. The inspection or approval by the Holder of any document or matter or thing done by the Corporation shall not be deemed to be a warranty or holding out of the adequacy, effectiveness, validity or binding effect of such document, matter or thing or a waiver of the Corporation's obligations.

**Article IX<br> <u>OTHER RIGHTS OF THE HOLDER</u>**

9.1 <u>Rights of Set-Off</u>. The Corporation acknowledges and agrees that the Indebtedness and the other Obligations shall be paid, satisfied and discharged to the Holder without regard to such dealings as may from time to time occur as between any one or more of the Holder, the Corporation and any other person and without regard to such equities or rights of set-off or counterclaim which may from time to time exist between any one or more of the Holder, the Corporation or any other person, and that the Indebtedness and other Obligations shall be paid without regard to any equities between the Corporation and the Holder hereof or any set-off or cross-claims and the receipt of the Holder for the payment of the Indebtedness will be a good discharge to the Corporation in respect thereof.

**9.2 <u>No Merger</u>.** Neither the taking of any judgment nor the exercise of any rights hereunder shall operate to extinguish the obligation of the Corporation to satisfy the Obligations in full and shall not operate as a merger of any covenant in this Debenture, and the acceptance of any payment shall not constitute or create a novation, and the taking of a judgment or judgments under a covenant herein contained shall not operate as a merger of those covenants and affect the Holder's right to interest under this Debenture.

**Article X<br> <u>ADMINISTRATIVE PROVISIONS</u>**

**10.1 <u>Transfer of Debenture</u>.** This Debenture may be transferred or assigned by the Holder without the consent of the Corporation, subject to compliance with all applicable legislation. The Corporation will keep a register of Debentures at its office in Vancouver, British Columbia with addresses and descriptions of the Holder and the registered holders of all other Debentures of this issue and particulars of the Debentures held by them respectively. This Debenture may be transferred only by transfer in writing in the form attached hereto as **<u>Schedule "B"</u>**, and will only be effective as regards the Corporation when delivered at the registered office of the Corporation in Vancouver, British Columbia accompanied by this Debenture together with such evidence of identity or title as the Corporation may reasonably require and upon payment of all applicable transfer Taxes. Thereupon, the Corporation will record such transfer on its books and issue a new debenture to the transferee in exchange for this Debenture. The charge contained in such new debenture shall rank in all respects rateably with the charge contained in the Debentures originally issued and forming the said series, and such new debentures shall for all purposes be taken and be deemed to be a Debenture forming part of the said series.

10.2 <u>Registered Holders</u>. The person in whose name this Debenture shall be registered shall be deemed and regarded as the owner and holder hereof for all purposes, and the payment to and/or receipt of any Holder for any Principal Amount or interest referred to herein shall be a good discharge of the Corporation for the same, and the Corporation shall not be bound to enter in the register notice of any trust or to enquire into the title of any Holder or to recognize any trust or equity affecting the title hereof save as ordered by some court of competent jurisdiction or as required by statute.

10.3 <u>Issue in Substitution for Debenture Certificates Lost, etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 this Debenture certificate becomes mutilated or is lost, destroyed or stolen, the Corporation,
 subject to applicable law, shall issue and deliver, a new Debenture certificate of like tenor,
 and bearing the same legend, if applicable, as the one mutilated, lost, destroyed or stolen
 in exchange for and in place of and upon cancellation of such mutilated Debenture certificate,
 or in lieu of and in substitution for such lost, destroyed or stolen Debenture certificate,
 and the substituted Debenture certificate and the Debenture evidenced thereby shall be entitled
 to the benefits hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 applicant for the issue of a new Debenture certificate pursuant to this Section 10.3 shall
 bear the cost of the issue thereof and in case of loss, destruction or theft shall, as a
 condition precedent to the issuance thereof, furnish to the Corporation such evidence of
 ownership and of the loss, destruction or theft of the Debenture certificate so lost, destroyed
 or stolen as shall be satisfactory to the Corporation, in its sole discretion, acting reasonably,
 and such applicant shall also be required to furnish an indemnity and surety bond in amount
 and form satisfactory to the Corporation, in its sole discretion, and shall pay the reasonable
 charges of the Corporation in connection therewith.

10.4 <u>Exchange of Debenture Certificate.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Holder may, upon compliance with the reasonable requirements of the Corporation (including
 compliance with applicable securities legislation), exchange this Debenture certificate for
 one or more other Debenture certificates representing the same aggregate Principal Amount,
 and bearing the same legend, if applicable, as represented by this Debenture certificate
 so exchanged.

(b) This
 Debenture certificate may be exchanged only at the registered office of the Corporation or
 at any other place that is designated by the Corporation. Any Debenture certificate tendered
 by the Holder for exchange shall be surrendered to the Corporation and cancelled by the Corporation.

10.5 <u>Cancellation of Surrendered Debenture Certificates.</u> Upon surrender of this Debenture certificate pursuant to Section 10.3 or Section 10.4 hereof, this Debenture certificate shall be cancelled by the Corporation and so noted on the register of Debentures maintained by the Corporation.

**Article XI<br> <u>MISCELLANEOUS</u>**

**11.1 <u>Time</u>.** Time shall be of the essence of this Debenture.

**11.2 <u>Governing Law</u>.** This Debenture shall be governed by and construed in accordance with the internal laws of the Province of British Columbia, and the laws of Canada applicable therein, governing contracts made and to be performed wholly therein, and without reference to its principles governing the choice or conflict of laws. The Corporation and the Holder irrevocably agree to attorn and submit to the non-exclusive jurisdiction of the courts of the Province of British Columbia, sitting in the City of Vancouver, with respect to any dispute related to or arising from this Debenture.

**11.3 <u>Severability</u>.** If any one or more of the provisions or parts thereof contained in this Debenture should be or become invalid, illegal or unenforceable, the remaining provisions or parts thereof contained herein shall be and shall be conclusively deemed to be, severable therefrom and the validity, legality or enforceability of such remaining provisions or parts thereof shall not in any way be affected or impaired by the severance of the provisions or parts thereof severed.

**11.4 <u>Headings</u>.** The headings of the articles, sections, subsections and clauses of this Debenture have been inserted for convenience and reference only and do not define, limit, alter or enlarge the meaning of any provision of this Debenture.

**11.5 <u>Binding Effect</u>.** This Debenture and all of its provisions shall enure to the benefit of the Holder, its successors and assigns, and shall be binding upon the Corporation and its successors and permitted assigns. The expression the "Holder" as used herein shall include the Holder's assigns whether immediate or derivative.

11.6 <u>Electronic Signature.</u> This Debenture certificate may be executed in one or more counterparts, each of which may be delivered by facsimile, by e-mail in PDF, or other legally permissible electronic signature, and each of which will be deemed to be an original, and all of which together will be deemed to be one and the same document.

11.7 <u>Electronic Transmission.</u>A signed copy of this Debenture certificate transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect and validity as delivery of an originally-executed copy of this Debenture certificate, provided that if this Debenture certificate bears an electronic signature as contemplated by Section 11.6 and the Corporation is delivering this Debenture certificate by electronic transmission pursuant to this Section 11.7, then the Corporation represents to the holder of this Debenture that the electronically transmitted Debenture certificate shall be the only executed copy to be issued by the Corporation.

**Article XII<br> <u>NOTICE</u>**

**12.1 <u>Notices</u>.** Any notice or communication to the Corporation or the Holder is duly given if in writing, in English and (1) delivered in person, (2) mailed by first-class mail (certified or registered, return receipt requested), postage prepaid, or overnight air courier guaranteeing next day delivery or (3) sent by facsimile with transmission confirmed or by electronic transmission. In each case, the notice or communication shall be addressed as follows:

If to the Corporation:

Verses AI Inc.

205 – 810 Quayside Drive

New Westminster, British Columbia, V6M 6B9

Email: james.christodoulou@verses.ai

Attention: James Christodoulou, CFO

If to the Holder:

«HolderName»

«HolderAddress2»

Any notice or delivery shall be given as herein provided or to such other addresses or facsimile number or in care of such other person as a party may from time to time advise by notice in writing as aforesaid. The date of receipt of such notice or delivery shall be the date of actual delivery to the address specified if delivered or the date of actual transmission to the facsimile number or email address if sent by facsimile or email, unless such date is not a Business Day, in which event the date of receipt shall be the next Business Day immediately following the date of such delivery or transmission or email.

[*Remainder of page intentionally left blank; signature page follows*]

**IN WITNESS WHEREOF** the Corporation has duly executed this Debenture as of December ___, 2025 by its duly authorized officer.

---

| | |
|:---|:---|
| **VERSES AI INC.** | **VERSES AI INC.** |
| Per: | |
| Name: | James Christodoulou |
| Title: | Chief Financial Officer |

---

[Signature page to Convertible Debenture]

**<u>SCHEDULE "A"</u>**

**<u>FORM OF VOLUNTARY CONVERSION NOTICE</u>**

**TO: VERSES AI INC.** (the "**Corporation**")

The undersigned Holder of the attached Debenture, hereby irrevocably elects to convert the Principal Amount under such Debenture (or $________________ Principal Amount\*) into _______________ Class A Shares of the Corporation in accordance with the terms of the Debenture.

\*If less than the full Principal Amount of the within Debenture is to be converted, indicate in the space provided the Principal Amount (which must be $1,000 or an integral multiple thereof) to be converted.

The undersigned Holder hereby elects to receive payment of the accrued and unpaid interest as follows (tick one box only):

☐ In cash <br>☐ In Class A Shares of the Corporation, calculated in accordance with the terms of the Debenture and subject to CBOE approval

The undersigned Holder directs that such Class A Shares issuable and deliverable upon the conversion be issued and delivered to the Person indicated below (provided that if the Person indicated below is not the undersigned, then the undersigned acknowledges and agrees that the delivery of such Class A Shares to the Person indicated below fully satisfies repayment of the amount of the Principal Amount under the Debenture converted into such Class A Shares).

Unless otherwise specified, terms used herein have the meanings given to them in the attached Debenture.

The undersigned Holder represents, warrants and certifies as follows (one (only) of the following must be checked):

☐ (A) the undersigned holder at the time of Conversion (a) is not in the United States, (b) is not a "U.S. Person" (as defined in Regulation S under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), (c) is not converting the Debenture for the account or benefit of a U.S. Person or a person in the United States, (d) did not execute or deliver this Voluntary Conversion Notice in the United States, and (e) delivery of the Class A Shares will not be to an address in the United States; OR

☐ (B) the undersigned holder has delivered to the Corporation and the Corporation's transfer agent an opinion of counsel of recognized standing (which will not be sufficient unless it is in form and substance reasonably satisfactory to the Corporation) or such other evidence reasonably satisfactory to the Corporation to the effect that with respect to the Class A Shares to be delivered upon Conversion, the issuance of such securities has been registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration requirements is available.

**Note:** The undersigned understands that the certificate or DRS representing the Class A Shares will bear a legend restricting transfer without registration under the U.S. Securities Act and applicable state securities laws unless the Class A Shares are registered under the U.S. Securities Act.

**Note:** Certificates or DRS representing Class A Shares will not be registered or delivered to an address in the United States unless Box B above is checked.

**Note:** For greater certainty, Box A may be checked by an undersigned that is a discretionary or similar account (other than an estate or trust) that is excluded from the definition of "U.S. Person" pursuant to Rule 902(k)(2)(i) of Regulation S under the U.S. Securities Act, and the Debentures are held on behalf of a person that is not a U.S. Person by a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United States.

**Note:** If Box B is checked, any opinion tendered must be in form and substance reasonably satisfactory to the Corporation. Holders planning to deliver an opinion of counsel in connection with the conversion of Debentures should contact the Corporation in advance to determine whether any opinions to be tendered will be acceptable to the Corporation.

**DATED** the _________ day of _____________________, 20___.

---

| |
|:---|
| **Per:** |
| **Name:** |
| **Title:** |

---

**REGISTER AND DELIVER AS FOLLOWS:**

---

| |
|:---|
| Name: |
| Address: |

---

**SCHEDULE "B"**

**<u>TRANSFER FORM</u>**

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ___________________________________, whose address and social insurance number, if applicable, are set forth below, this Debenture (or $__________ Principal Amount hereof\*) of **VERSES AI INC.** standing in the name(s) of the undersigned in the register maintained by the Corporation with respect to such Debenture and does hereby constitute and appoint the attorney of the undersigned to transfer such Debenture in such register, with full power of substitution in the premises.

The capitalized terms used herein have the meanings set forth on Appendix "A" attached hereto. All capitalized terms not defined in this Transfer Form shall have the meaning ascribed to such terms in the certificate representing the Debenture tendered with this Transfer Form.

Dated:___________________________________________________________________________________________

Address of Transferee:______________________________________________________________________________

(Street Address, City, Province and Postal Code)

Social Insurance Number of Transferee:_________________________________________________________________

\*If less than the full Principal Amount of the within Debenture is to be transferred, indicate in the space provided the Principal Amount (which must be $1,000 or an integral multiple thereof) to be transferred.

1. The signature(s) to this Transfer must correspond with the name(s) as written upon the face of this Debenture in every particular without alteration or any change whatsoever.

2. The registered holder of this Debenture is responsible for the payment of any documentary, stamp or other transfer taxes that may be payable in respect of the transfer of this Debenture.

3. Any transfer of this Debenture must comply with all of the transfer restrictions contained in the Debenture and all applicable laws.

**THIS DEBENTURE, AND ANY INTEREST THEREIN, SHALL ONLY BE TRANSFERABLE IN ACCORDANCE WITH APPLICABLE LAWS, AND THE RESALE OF SAID INTEREST AND/OR ANY COMMON SHARES ISSUABLE UPON THE CONVERSION THEREOF MAY BE SUBJECT TO RESTRICTIONS UNDER SUCH LAWS.**

**REPRESENTATIONS OF TRANSFEROR**

The undersigned Transferor hereby represents to the Corporation that, in connection with the foregoing requested transfer, either:

(1) (A) at the time of this transfer the Transferee is not a person in the United States and did not execute this Transfer Form or accept the offer of transfer while within the United States, and (B) this transfer in all other respects complies with the terms of Regulation S.

  <br> Initial if True

**OR**

(2) The Transferee has represented that it (i) was an original purchaser in the Corporation's private offering (the "**Placement**") under which the Debenture was issued, (ii) is an Accredited Investor as defined in Rule 501(a) under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), and (iii) the representations and warranties made to the Corporation in connection with the Transferee's subscription to the Placement remain true and correct on the date of this Transfer Form.

  <br> Initial if True

**OR**

(3) The undersigned Transferor has delivered herewith a written opinion of U.S. Counsel of recognized standing to the effect that the transfer of the Debenture as contemplated hereby has is exempt from registration under the U.S. Securities Act.

  <br> Initial if True

__________________________________________

Signature of Transferor

____________________________________________

Name (Please Print)

____________________________________________

Date

**REPRESENTATIONS OF TRANSFEREE**

The undersigned Transferee hereby represents to the Corporation, in connection with the foregoing requested transfer, that it is a *bona fide* resident of the jurisdiction set forth above for its address, and that:

(1) (A) at the time of this transfer it is not a person in the United States and did not execute this Transfer Form or accept the offer of transfer while within the United States, and (B) this transfer in all other respects complies with the terms of Regulation S.

  <br> Initial if True

**OR**

(2) (A) it was an original purchaser in the Corporation's private offering (the "**Placement**") under which the Debenture was issued, (B) it is an Accredited Investor as defined in Rule 501(a) under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), and (C) the representations and warranties made to the Corporation in connection with undersigned's subscription to the Placement remain true and correct on the date of this Transfer Form.

  <br> Initial if True

**OR**

(3) the Transferor is delivering a written opinion of U.S. Counsel of recognized standing to the effect that the transfer of the Debenture as contemplated hereby is exempt from registration under the U.S. Securities Act.

<br> Initial if True

____________________________________________

Signature of Transferee

____________________________________________

Name (Please Print)

____________________________________________

Date

**APPENDIX "A" TO SCHEDULE "B"**

**<u>Definitions</u>**

The following terms used in the foregoing Transfer Form shall have the following meanings:

"**Accredited Investor**" means an "accredited investor" as that term is defined in Rule 501(a) of Regulation D.

**"Affiliate"** means any person who controls, is controlled by, or is under common control with, another person.

"**Regulation D**" means Regulation D of the U.S. Securities Act.

"**Regulation S**" means Regulation S of the U.S. Securities Act.

"**United States**" means United States as that term is defined in Regulation S.

"**U.S. Counsel**" means legal counsel of recognized standing in the United States.

"**U.S. Securities Act**" means the United States Securities Act of 1933, as amended.

## Exhibit 4.2

**Exhibit 4.2**

**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR MONTHS AND A DAY AFTER APRIL [●], 2026.**

**THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF VERSES AI INC. (THE "COMPANY") THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY; (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULES 903 OR 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT; (C) IN ACCORDANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS; (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS; OR (E) UNDER AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT, PROVIDED THAT IN THE CASE OF PARAGRAPH (C) OR (D), SUCH OFFER, SALE OR OTHER TRANSFER MAY BE MADE WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO AND AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED IS FURNISHED BY COUNSEL TO THE COMPANY. THE PRESENCE OF THIS LEGEND MAY IMPAIR THE ABILITY OF THE HOLDER HEREOF TO EFFECT "GOOD DELIVERY" OF THE SECURITIES REPRESENTED HEREBY ON A CANADIAN STOCK EXCHANGE.**

**THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A PERSON IN THE UNITED STATES OR A U.S. PERSON UNLESS THE SHARES ISSUABLE UPON EXERCISE OF THESE WARRANTS HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.**

**WARRANT TO PURCHASE CLASS A SUBORDINATE VOTING SHARES**

**OF**

**VERSES AI INC**

(the "**Company**")

(Organized under the laws of the Province of British Columbia)

Warrant Certificate No: WA-2025-12-[**No**]

Issue Date: December [●], 2025

THIS IS TO CERTIFY THAT, for value received, **[Name]** of **[Address]**, the holder of this Warrant, is entitled to purchase:

**[NUmber]**

non-assessable Class A Subordinate Voting Shares of the Company ("**Class A Shares**") as such shares were constituted on the Issue Date at any time up to 4:30 p.m. local time at the City of Vancouver, British Columbia at and for a price of C$7.00 per share, of lawful money of Canada, up to and including December [●], 2028 (the "**Expiry Date**") upon and subject to the terms and conditions attached hereto.

[*Remainder of Page Intentionally Left Blank*]

---

| | |
|:---|:---|
| **VERSES AI INC.** | **VERSES AI INC.** |
| Per: | |
|  | Director/Officer |

---

---

| | |
|:---|:---|
| **NOTE:** | Any share certificates issued upon exercise of this Warrant prior to the expiry of the hold periods will be printed with the corresponding legends. This Warrant certificate may be executed in one or more counterparts, each of which may be delivered by facsimile, by e-mail in PDF, or other legally permissible electronic signature, and each of which will be deemed to be an original, and all of which together will be deemed to be one and the same document. |

---

**TERMS, CONDITIONS AND INSTRUCTIONS**

1. The
 holder of this Warrant may subscribe for up to the number of Class A Shares ()"**Warrant Shares**") of the Company indicated on the face hereof in accordance with and subject
 to the terms and conditions set out in this Warrant.

2. For
 each Warrant Share purchased pursuant to this Warrant, payment must be made in the amount
 of C$7.00 per Warrant Share (the "**Exercise Price** "). All payments must
 be made in Canadian funds, in cash or by certified cheque, bank draft or money order payable,
 at par, in Vancouver, British Columbia, made payable to the Company's name set out
 on the face hereof or, if such name is changed after the Issue Date, the Company's
 then current name. If payment is made by way of an uncertified cheque, the Company reserves
 the right to deem that the payment has not been received until the cheque has cleared the
 account upon which it has been drawn.

3. To
 exercise the rights evidenced by this Warrant, this Warrant with the Warrant Exercise Form
 attached as Appendix 1 hereto (the "**Warrant Exercise Form**") completed
 and payment as required for the shares subscribed for, must be delivered or mailed to the
 offices of the Company at 205 - 810 Quayside Drive, New Westminster, BC V3M 6B9, or, if such
 address is changed after the Issue Date, the then current head office address of the Company,
 and received by the Company.

4. The
 rights evidenced by this Warrant expire at 4:30 p.m. local time in Vancouver, British Columbia
 on the Expiry Date. If this Warrant is not exercised on or before its expiry, the Warrant
 shall be void and all rights evidenced thereby shall forthwith cease to represent a right
 or claim of any nature.

5. The
 rights evidenced by this Warrant may be transferred or assigned by the holder, subject to
 all applicable regulatory and legal requirements and the approval of the Company, by duly
 completing and executing the Warrant Transfer Form attached as Appendix 2 hereto.

6. The
 rights to purchase Warrant Shares granted by this certificate may be exercised, subject to
 the terms and conditions hereof, in whole or in part (but not as to a fractional share) from
 time to time.

7. This
 Warrant does not entitle the holder to any rights as a shareholder of the Company, including,
 without limitation, voting rights.

8. If
 this Warrant or the purchase price are forwarded by mail, it is suggested that registered
 mail be used as the Company and the Company's registrar and transfer agent will not
 be responsible for any losses which occur through the use of mails.

9. The
 Company shall, no more than five business days after delivery of this Warrant, together with
 a duly executed Warrant Exercise Form and payment as required for the shares subscribed for,
 issue and deliver to the holder certificates for that number of shares subscribed for, at
 the address shown on the Warrant Exercise Form.

10. The
 rights evidenced by this Warrant are to purchase Class A Shares as they were constituted
 on the Issue Date. If after such date and prior to the exercise of any of the rights evidenced
 by this Warrant, there shall be any change in the Class A Shares of the Company whether by
 consolidation, sub-division, reclassification, payment of any stock dividends, or otherwise,
 then an appropriate adjustment shall be made in either or both of (i) the number of Class
 A Shares issuable on exercise of the rights evidenced by this Warrant and (ii) the Exercise
 Price; and if the Company shall amalgamate with, consolidate with or merge with or into,
 or participate in a statutory arrangement or similar reorganization with another corporation
 or entity, any Class A Shares of the Company issuable on exercise of the rights evidenced
 by this Warrant shall be converted into the securities, property, or cash which the holder
 would have received upon such amalgamation, consolidation, merger, arrangement or reorganization
 had the Warrant been exercised prior to such event becoming effective, subject to the approval
 of any stock exchange on which the Company's shares are listed (if required). Any adjustment
 contemplated herein shall be to the effect that the rights evidenced by this Warrant shall
 thereafter be as reasonably as possible equivalent to those originally granted hereby. In
 accordance with this certificate, the Company will make adjustments as it considers necessary
 and equitable acting in good faith, subject to any approvals required by any stock exchange
 on which the Company's shares are listed. If at any time a dispute arises with respect
 to adjustments provided for herein, such dispute will be conclusively determined by the auditors
 of the Company or if they are unable or unwilling to act, by such other firm of independent
 chartered accountants as may be selected by the directors of the Company and any such determination,
 absent manifest error, will be binding upon the Company, the holder of this Warrant and shareholders
 of the Company. The Company will provide such auditors or accountants with access to all
 necessary records of the Company and fees payable to such accountants or auditors will be
 paid by the Company.

11. The
 Company will at all times until the expiry of this Warrant keep available, and reserve if
 necessary, out of its authorized shares, solely for the purpose of issue upon the exercise
 of this Warrant, such number of Warrant Shares of the Company as shall then be issuable upon
 the exercise of this Warrant. The Company covenants and agrees that all shares which shall
 be so issuable will, upon issuance, be issued as fully paid and non-assessable and free from
 all liens, charges and encumbrances.

12. The
 Company will maintain at its offices a register (the "**Register**") of the
 names and addresses of the registered holders of the share purchase warrants issued by the
 Company in the private placement of special warrants pursuant to which this Warrant was issued,
 which Register will be updated to reflect exercises and, if applicable, transfers of the
 share purchase warrants.

13. Unless
 herein otherwise expressly provided, any notice (a "**Notice**") to be given
 hereunder to the holder of the Warrant shall be deemed to be validly given if the Notice
 is sent by first class mail, postage prepaid, addressed to the holder or delivered by hand
 at the address appearing on the Register and if, in the case of joint holders of the Warrant,
 more than one address appears on the Register in respect of that joint holding, the Notice
 shall be addressed or delivered, as the case may be, only to the first address, as the case
 may be, so appearing. Any Notice so given shall be deemed to have been given on the day of
 delivery by hand or on the next business day if delivered by mail. If, by reason of strike,
 lockout or other work stoppage, actual or threatened, involving postal employees, any Notice
 to be given to the holder of the Warrant could reasonably be considered unlikely to reach
 its destination, the Notice may be published or distributed once in the Report on Business
 section of the national edition of The Globe and Mail newspaper or, in the event of a disruption
 in the circular of that newspaper, once in a daily newspaper in the English language of general
 circulation in Vancouver, British Columbia and Toronto, Ontario. Any Notice so given shall
 be deemed to have been given on the day on which it has been published in all of the cities
 in which publication was required (or first published in a city if more than one publication
 in that city is required).

14. This
 Warrant certificate is to be governed by and construed in accordance with the laws of the
 Province of British Columbia and the laws of Canada applicable therein.

15. This
 Warrant certificate may be executed in one or more counterparts, each of which may be delivered
 by facsimile, by e-mail in PDF, or other legally permissible electronic signature, and each
 of which will be deemed to be an original, and all of which together will be deemed to be
 one and the same document.

**APPENDIX 1 TO WARRANT CERTIFICATE**

**<u>WARRANT EXERCISE FORM</u>**

The undersigned, holder of the within Warrant, hereby subscribes for _______________________ Class A Subordinate Voting Shares ("**Class A Shares**") of Verses AI Inc. (the "**Company**"). If the number of Class A Shares purchased hereby does not exercise all of the rights evidenced by this Warrant, the holder requests issuance and delivery to it at the following address of a new Warrant evidencing the unused rights.

The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):

☐ (A) the undersigned holder at the time of exercise of the Warrants (a) is not in the United States, (b) is not a "U.S. Person" (as defined in Regulation S under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), (c) is not exercising the Warrants for the account or benefit of a U.S. Person or a person in the United States, (d) did not execute or deliver this exercise form in the United States, and (e) delivery of the Class A Shares will not be to an address in the United States; OR

☐ (B) the undersigned holder has delivered to the Company and the Company's transfer agent an opinion of counsel of recognized standing (which will not be sufficient unless it is in form and substance reasonably satisfactory to the Company) or such other evidence reasonably satisfactory to the Company to the effect that with respect to the Class A Shares to be delivered upon exercise of the Warrants, the issuance of such securities has been registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration requirements is available.

**Note**: The undersigned understands that the certificate or DRS representing the Class A Shares will bear a legend restricting transfer without registration under the U.S. Securities Act and applicable state securities laws unless an exemption from registration is available.

**Note**: Certificates or DRS representing Class A Shares will not be registered or delivered to an address in the United States unless Box B above is checked.

**Note**. For greater certainty, Box A may be checked by an undersigned that is a discretionary or similar account (other than an estate or trust) that is excluded from the definition of "U.S. Person" pursuant to Rule 902(k)(2)(i) of Regulation S under the U.S. Securities Act, and the Warrants are held on behalf of a person that is not a U.S. Person by a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United States.

**Note**: If Box B is checked, any opinion tendered must be in form and substance reasonably satisfactory to the Company. Holders planning to deliver an opinion of counsel in connection with the exercise of Warrants should contact the Company in advance to determine whether any opinions to be tendered will be acceptable to the Company.

The undersigned directs that the Class A Shares hereby subscribed for be issued and delivered to it as follows:

---

| | | |
|:---|:---|:---|
| **NAME** | **ADDRESS** | **NO. OF SHARES** |

---

In the absence of instructions to the contrary, the securities or other property will be issued in the name of or to the holder hereof and will be sent by first class mail to the last address of the holder appearing on the register maintained for the Warrants.

DATED the___________ day of __________________________, 20____.

---

| | |
|:---|:---|
| Signature Guaranteed | (Signature of Warrantholder) |
|  | Print full name |
|  | Print full address |

---

**Instructions:**

1. The
 registered holder may exercise its right to receive Warrant Shares by completing this form
 and surrendering this form and the Warrant Certificate representing the Warrant being exercised
 together with payment of the aggregate Exercise Price, by certified cheque, bank draft or
 money order payable to the order of the Company's name set out above or, if such name
 is changed after the Issue Date, the Company's then current name, to the head office
 of the Company , and such other documents as the Company may reasonably require, all in accordance
 with the Terms, Conditions and Instructions set out in the within Warrant.

2. If
 the Warrant Exercise Form indicates that Class A Shares are to be issued to a person or persons
 other than the registered holder of the Warrant Certificate, the signature of such holder
 of the Warrant Exercise Form must be guaranteed by an authorized officer of a chartered bank,
 trust company or medallion guaranteed by an investment dealer who is a member of a recognized
 stock exchange.

3. If
 the Warrant Exercise Form is signed by a trustee, executor, administrator, curator, attorney,
 officer of a Company or any person acting in a judiciary or representative capacity, the
 certificate must be accompanied by evidence of authority to sign satisfactory to the Company.

**APPENDIX 2 TO WARRANT CERTIFICATE**

**<u>WARRANT TRANSFER FORM</u>**

---

| | |
|:---|:---|
| TO: | Verses AI Inc. (the "**Company**") |

---

FOR VALUE RECEIVED, subject to receipt of prior written approval of the Company, the undersigned (the "**Transferor**") hereby sells, assigns and transfers unto (name) ___________________________ (the "**Transferee**") of (residential address) ________________________________________________________________________, _________ (no. of Warrants) Class A Subordinate Voting Share purchase warrants of the Company registered in the name of the undersigned represented by the within Warrant certificate, and irrevocably appoints the Company as the attorney of the undersigned to transfer the said securities on the register of transfers for the said Warrant, with full power of substitution.

The undersigned hereby represents, warrants and certifies that (one (only) of the following must be checked):

☐ (A) the transfer is being made only to the Corporation;

☐ (B) the transfer is being made outside the United States in accordance with Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), and in compliance with any applicable local securities laws, or

☐ (C) the transfer is being made to, or for the account or benefit of, a U.S. Person or a person in the United States, in accordance with a transaction that does not require registration under the U.S. Securities Act or any applicable U.S. state securities laws, and the undersigned has furnished to the Corporation an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Corporation to such effect.

DATED this __ day of ________, 20____.

---

| | |
|:---|:---|
| Signature Guaranteed (only if the Warrant is registered in the name of someone other than the Transferor) | (Signature of Transferor)<br>|
|  | Print full name |
|  | ____________________________________________________ |
|  | Print full address |

---

**The Warrant and the Class A Subordinate Voting Shares (the "Class A Shares") issuable upon exercise of the Warrant shall only be transferable in accordance with applicable laws. The Warrant may only be exercised in the manner required by the certificate representing the Warrant and the Warrant Exercise Form attached thereto. Any Class A Shares acquired pursuant to the Warrant shall be subject to applicable hold periods and any certificate representing such Class A Shares will bear restrictive legends.**

## Exhibit 99.1

**Exhibit 99.1**

**VERSES Closes CAD$2.65 Million Convertible Debenture Unit Financing**

**VANCOUVER, British Columbia – December 19, 2025 – VERSES AI Inc.** (CBOE: VERS) (OTCQB: VRSSF) ("**VERSES**" or the "**Company**"), a cognitive computing company pioneering next-generation agentic software systems, is pleased to announce that it has closed a non-brokered private placement offering (the "**Offering**") of secured convertible debenture units (the "**Units**") for gross proceeds of CAD$2.65M of which C$2.4M was in cash.<br>Each Unit consists of CAD$1,000 principal amount of secured convertible debentures (the "**Convertible Debentures**") and 164 detachable share purchase warrants (the "**Warrants**"). The Convertible Debentures are convertible into Class A Subordinate Voting Shares of the Company (the "**Shares**"), at the election of the holder, at a conversion price of CAD$3.04 per Share (the "**Conversion Price**"), subject to customary anti-dilution adjustments. The Warrants are exercisable at a price of CAD$7.00 per Share until December 18, 2028.<br>The Convertible Debentures mature on December 18, 2027 (the "**Maturity Date**") and bear interest at a rate of 15% per annum, payable in arrears on the earlier of conversion, prepayment, or the Maturity Date, in either cash or, at the option of the holder, by the issuance of Shares at the Conversion Price, subject to approval of Cboe Canada Inc. (the "**Exchange**").<br>The Convertible Debentures are secured by a first-ranking security interest over all present and after-acquired property and assets of the Company. The Company intends to use the net proceeds from the Offering for general working capital purposes.

The securities issued under the Offering are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation in Canada. The Offering is subject to final approval by the Exchange.

The securities offered under the Offering will not be registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") and none of the Units, Convertible Debentures, Warrants, or Shares issuable upon exercise or conversion of the Warrants or Convertible Debentures may be offered or sold in the United States absent registration under the U.S. Securities Act and all applicable state securities laws or an applicable exemption from such registration requirements.

This news release shall not constitute an offer to sell, or a solicitation of an offer to buy, the Units in the United States, and shall not constitute an offer, solicitation or sale of any securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. This news release is being issued pursuant to and in accordance with Rule 135c under the U.S. Securities Act.

**About VERSES**<br>

VERSES® is a cognitive computing company building next-generation agentic software systems modeled after the wisdom and genius of Nature. Designed around first principles found in science, physics and biology, our flagship product, Genius,™ is an agentic enterprise intelligence platform designed to generate reliable domain-specific predictions and decisions under uncertainty. Imagine a Smarter World that elevates human potential through technology inspired by Nature.

For more information, visit VERSES.ai, and follow VERSES on LinkedIn and X.

On behalf of the Company

Gabriel René, Founder & CEO, VERSES AI Inc.<br>Press Inquiries: <u>press@verses.ai</u><br>Investor Relations Inquiries:<br> James Christodoulou, Chief Financial Officer<br> <u>ir@verses.ai</u>, +1(212)970-8889

**Forward-Looking Statements**<br>

This news release contains "forward-looking information" and "forward-looking statements" (collectively, the "Statements") within the meaning of applicable securities laws, including, without limitation, statements regarding the anticipated use of proceeds from the Offering. Although VERSES believes that the expectations expressed in these Statements are based on reasonable assumptions, actual results may differ materially.

Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information, including the assumption regarding the Company's ability to effectively deploy the proceeds of the Offering as intended; the continued development, commercialisation, and acceptance of the Company's products and technologies; the maintenance of favourable market conditions; the Company's ability to attract and retain key personnel; the absence of material adverse changes in the Company's operations or business environment; the Company's ability to protect its intellectual property; and the Company's ability to comply with applicable laws and regulations. Those assumptions and factors are based on information currently available to the Company. Although such statements are based on reasonable assumptions of the Company's management, there can be no assurance that any conclusions or forecasts will prove to be accurate.<br>

By their nature, the Statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such Statements. Factors that may cause such differences include, but are not limited to, risks related to the Company's ability to use the proceeds from the Offering as intended; risks associated with the development and commercialisation of new technologies; competition in the industry; changes in market conditions or investor sentiment; fluctuations in the Company's share price; the impact of global economic conditions; risks related to the Company's intellectual property; risks related to the Company's reliance on key personnel; risks related to cybersecurity and data protection; changes in laws, regulations, or policies applicable to the Company; and other risks detailed from time to time in the Company's public filings and disclosures available on SEDAR+ and EDGAR. The Statements speak only as of the date of this release, and VERSES undertakes no obligation to update them except as required by applicable law.

Neither the Exchange nor any other securities regulator accepts responsibility for the adequacy or accuracy of this release.