DeepVerge plc announced that it has entered into 3-year convertible loan facility agreement with returning investor, YA II PN, Ltd., a fund managed by Yorkville Advisors Global LP and Riverfort Global Opportunities Pcc Ltd for gross proceeds of up to £25 million on March 17, 2022. The company will do initial drawdown of £4,000,000. The loan note carries 1% per month.

The loans will be convertible at a 40% premium to a 5 day volume weighted average price prior to the date of each draw down. The lenders will receive warrants of 40% of the value of each advance, with the number of warrants to be issued is being calculated by dividing the advance by the reference price. For the initial advance 11,265,622 warrants will be issued with an exercise price of £0.20.

The Lenders may elect, at their discretion, to issue a conversion notice to convert any unpaid balance into ordinary shares of £0.001 in the company at a subscription price for all Advances representing a 40% premium to the average daily volume weighted average price for the previous 5 days' trading prior to the drawdown of the relevant amount and for the Initial Advance at a subscription price representing a 40.8% premium to the VWAP. The VWAP for the previous five trading days ending on 15 March 2022 is £0.14.2025 making the fixed premium placing price £0.20 If prior to the maturity date the company issues and allots new ordinary shares at a price per share below the reference price, then the fixed premium placing price shall be amended to 100% of the price per share in respect of the relevant New share issuance.