Liquid Media Group Ltd. Announced that it has received a notice of default from an institutional investor in respect of three notes with an aggregate principal amount of $4.005 million. The notes comprise of a 20% original issue discount convertible debenture with a principal amount of $3.125 million (the First Note) and two demand secured promissory notes with principal amounts of $346,153 and $533,333, respectively (the Second and Third Notes). Under the notice, the institutional investor claims that the Company breached the terms of the First Note and related forbearance agreement by not curing certain existing defaults by the applicable cure dates.

As a result of the default, the institutional investor is entitled to certain remedies, including among others, the right to declare due and payable in cash 150% of the outstanding principal amount of the First Note, plus 150% of all other amounts, costs, expenses and liquidated damages due in respect of the First Note. Also under the notice, the institution investor claims the Company breached the terms of the Second and Third Notes, by not making the requisite payments thereunder by maturity, which occurred on January 25, 2024 and April 1, 2024, respectively. As a result of the defaults, the institutional investor is entitled to certain remedies, including among others, the right to redeem all or any part of the Second or Third Notes, at a redemption price equal to 125% of such amounts redeemed.

The Company is currently reviewing its rights under the notes and related agreements.